ANALYSIS OF INCOME DIVERSIFICATION AMONG RURAL HOUSEHOLDS IN JOS SOUTH AND RIYOM LOCAL GOVERNMENT AREAS OF PLATEAU STATE, NIGERIA

Abstract

The study analyzed income diversification among rural households in Jos South and Riyom Local Government Areas of Plateau State, Nigeria. A multi-stage sampling technique was used in selecting 275 respondents for the study. Data were collected using questionnaires administered, 275 respondents out of which 258 were retrieved and analysed using both descriptive and inferential statistics. The results revealed that the mean age of the respondents was 34.5 years, 50.80% were male, majority (60.50%) were married with a mean household size of 5 persons and more than half (56.20%) of the respondents had tertiary education. The results further revealed that the mean farm size of the respondents was 2.27 hectares, 40.3% acquired their land through inheritance, with mean farming experience of 9 years and mean monthly income of N53, 922.48. In addition, the results also revealed that, non-farm wage labour (42.60%), farm related employment (40.70%) and non-farm self-employment (16.70) were the primary economic activities of rural households in the study area.The results of Tobit regression analysis of the determinants of income diversification showed that farm size (P<0.05), household size (P<0.01), educational level (P<0.05) and extension contact (P<0.05) significantly influenced income diversification among the rural households. It was concluded that rural households diversified their income sources and income diversification has significant influence on socio-economic variables. It is therefore recommended that policies aimed at improving rural households should strengthen non-farm sectors through the provision of adequate capital, functional institutions and social amenities.