This study evaluates the impact of non-farm enterprises on the poverty status of rural farming households in Nigeria. The data were obtained from General Household Survey fielded by the National Bureau of Statistics in 2010/2011 and 2015/2016. However, only 1,619 matched observations were used for analyses, using Propensity Score Matching, Double Difference, Foster-Greer-Thorbecke poverty measures and Poverty Equivalent Growth Rates (PEGRs). The results show that 53.3% of participants lived below the poverty line (poor)
in 2011, while in 2016, this proportion declined to 31.94%. The poverty incidence of female participants (0.5504) decreased by 53.68% while that of male participants (0.4112) decreased by 4.81%. If female participants had not participated in non-farm enterprises, their poverty would have been reduced by only 9.7% but due to participation, it was reduced by 53.68%. The Poverty Equivalent Growth Rates are higher for all the three FGT measures than the actual growth rates for all participants, males and females with females showing
higher poverty reduction; which means that growth was propoor, although the poverty of the poor decreased more than that of the core poor. Also, after five years there is a decline in poverty incidences of participants across the six geopolitical zones and the decline was mostly felt in the North East (NE) followed by North Central (NC) while the least percentage decline was seen in North West (NW). Since participation in
non-farm activities had a significant impact on the poverty of participants, the promotion of non-farm enterprises among poor farmers should be encouraged.


impact; non-farm enterprises; poverty; farming households; rural Nigeria

Abboth, Murenzi & Musana (2012). The role of non-farm households enterprises in poverty reduction, employment creation and economic growth in Rwanda. Rwanda Journal 26, 68-92.
Adjognon, G. S., Liverpool-Tasie, S. L., De La Fuente, A., & Benfica, R. (2017). Rural Non- Farm Employment and household welfare: Evidence fom Malawi. Policy Research working paper, No. WPS8096. Whasington, D. C., World Bank Group.
Africa Development Bank (AfDB), (2018). Nigeria Economic Outlook report: Available Online at:
Africa Development Bank (AfDB), (2014). Africa Economic Outlook 2014: Global Value Chains and Africa’s Industrialisation. Available Online at:
Aighokhan, B. E. (1997). Poverty Alleviation in Nigeria: Some Macro- economic issues. NES Annual Conference Proceeding. 181-209.
Awoyemi, T. T. (2011). Rural Non-farm incomes and Poverty reduction in Nigeria. AERC Research Paper 224. African Economic Research Consortiun, Nairobi.
Bruton, G. D., Ketchen, D. J. & Ireland, R. D. (2013). Entrepreneurship as a solution to poverty. Journal of business venturing, 28(6), 683-689.
Diao, X., Magalhaes, E., & Mcmillian, M. (2018). Understanding the role of rural non-farm enterprises in Africa’s economic transformation: Evidence from Tanzania. Journal of Development Studies, 54 (5), 1-23.
International Fund for Agricultural Development, (IFAD) (2011). Rural Poverty Report: Enabling Poor Rural People to Overcome Poverty.
Iqgal, M. A., Abbas, A., Ullah, R., Ahmed, U. I., Sher, A., & Akhtar, S. (2018). Effect of Non-farm income on poverty and income inequality: Farm Households from Punjab Province Pakistan. Sarhad Journal of Agriculture, 34(2), 233-239
Katsushi, S. I., Raghav, G., Ganesh, T. (2015). Does no-farm sector employment reduce rural poverty and vulnerability? Evidence from Vietnam and India. Journal of Asian Economics, 36, 47-61.
Kharas, H., Di Nucci, C., Hamel, K., & Tong, B. (2020). To move the needle on ending extreme poverty, focus on rural areas. Future Development @World Bank.
Kinuthia, B., Araar, A., Lalampaa, L. Maende, S. & Mariera, F (2019). Off-farm participation, agricultural production and farmers’ welfare in Tanzania and Uganda. Partnership for Economic Policy working Paper No. 2019-01
Lambon-Quayefio, M. (2017). Non-farm enterprises and the rural youth employment challenge in China. IDS Bulletin @ Institute of development studies, 48 (3)
Megbowon, E., & Mushunje, A. (2018). Livelihood diversification and its effect on household poverty in Eastern Cape Province, South Africa. The Journal of developing Areas, 52(1), 235-249.
Nagler, P. & Naude, W. (2017). Non- Farm Entrepreneurship in Ruralsub-Saharan Africa: New Empirical Evidence. Food policy, 67,175-191
Oladimeji, Y. U., Abdulsalam, Z. & Abdullahi, A. N. (2015). Determinants of participation of rural farm households in no-farm activities in kwara State, Nigeria: A paradigm of poverty alleviation. Ethiopian Journal of Environmental studies and management, 8(6), 635-649.
Reardon, T., Berdegue, J., Barrett, C., & Stamoulis, K. (2006). Household Income Diversification into Rural Non-Farm Activities. Baltimore: Johns Hopkins University Press.
Scharf, M. M., & Rahut, D. B. (2014). Nonfarm employment and rural welfare: evidence from the Himalayas. American Journal of Agricultural Economics, 96 (4). 1183-1197
United Nations, (2018). Sustainable development goals. 17 goals to transform our world. Available at
World Bank (2017). Growing the rural non-farm economy to alleviate poverty. An independent evaluation Group @ international Bank for reconstruction and development. Available at

Published : 2021-10-13

Kolawole, R. (2021). IMPACT ASSESSMENT OF NON-FARM ENTERPRISES ON POVERTY STATUS OF RURAL FARMING HOUSEHOLDS IN NIGERIA. Journal of Agribusiness and Rural Development, 61(3), 315–321.

Roseline Jumoke Kolawole
Federal university of Technology Akure  Nigeria

CitedBy Crossref

CitedBy Scopus

HTML tutorial

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This journal permits and encourages authors to post items submitted to the journal on personal websites or institutional repositories both prior to and after publication, while providing bibliographic details that credit, if applicable, its publication in this journal.