EFFECT OF LIVELIHOOD DIVERSIFICATION ON RURAL MIGRANT HOUSEHOLDS’ EXPENDITURE IN SOUTHWESTERN, NIGERIA

Abstract

The study examen the effect of livelihood diversification on rural migrant households’ expenditure in Southwestern Nigeria. A multistage random sampling technique was used to select the respondents for the study. Ekiti, Osun and Oyo states were randomly selected from the six states of the South-west, Nigeria. In all, a total of 413 respondents were selected for the study. Structured questionnaire was used to collect relevant data for the study. The data were subsequently analysed using descriptive statistics, estimation of Simpson’s Index of Diversity (SID) and Simultaneous regression model (2-Stage Least Square). The results showed that majority (72.75%) of households were headed by males with the mean age and household size of 49.97 and 7 respectively. The first-generation migrants formed the majority (76.75%). The average duration of stay by the migrants was 29.51 years. Farming was chosen as the main occupation by more than half (55%) of household head. High degree of heterogeneity in terms of asset ownership and income generating activities was observed at household level. There was a moderate level of livelihood diversification as indicated by the estimated mean value (0.53) of SID. The SLS estimates revealed that livelihood diversification had a positive and significant (p<0.05) influence on per capita household expenditure. It is therefore recommended that policies on rural development should follow a multidimensional approach in improving access to non-farm and off-farm employment.