Contribution of Maize-based Products to the Livelihood of Smallholder Processors in Rural Northern Nigeria

Abstract

In the smallholder value chains of maize, diversification of utilisation is an essential strategy towards enhancing the benefits drivable from the increase in maize production. This article identifies the contribution of maize-based products on poverty level among smallholder processors. The study, which was conducted in 30 rural communities in northern Nigeria, involved Focus Group Discussions and survey of 300 smallholder processors of maize-based products. Descriptive and inferential analyses were used. The results show that average annual profit among the interviewed smallholder processors of maize-based products was approximately N425,506 (about US$1,400). These processors faced several constraints which tend to keep them under poverty trap (vicious cycle of poverty). The result of the estimated two-step Tobit model shows that, with necessary interventions, profit from maize-based products has the capacity of keeping these processors out of poverty trap. The result indicates that as profit from maize-based products increases, the poverty probability index that household is not below poverty line of $1.90/day at 2011 purchase–power parity increases ( p < 0.05). Thus, household poverty among rural smallholder processors of maize-based product could be reduced drastically through interventions targeted at mitigating the identified constraints.