Project – Effect of government subsidies on cassava production and its implication for poverty alleviation in Makurdi Local Government Area of Benue
CHAPTER ONE
INTRODUCTION
- Background to the Study
Government subsidies have been widely adopted as a policy instrument to stimulate agricultural productivity, particularly in developing countries where agriculture is a primary source of livelihood. In Nigeria, cassava remains one of the most important staple crops, and various subsidy programs have been introduced over the years to enhance its production. According to Nweke et al. (2002), cassava is a vital food crop that contributes significantly to the food security and income of rural populations. Subsidies on fertilizers, improved seedlings, and mechanization services have been central to government efforts to boost cassava yields and reduce rural poverty.
The Presidential Initiative on Cassava (PIC), launched in 2002, was one of the most ambitious subsidy-driven programs aimed at transforming cassava from a subsistence crop into a commercially viable one. The program focused on expanding cultivated land, increasing productivity through improved varieties, and supporting value chain development. As noted by Oteh and Nwachukwu (2014), while PIC contributed to increased national production levels, the benefits were not evenly distributed, as smallholder farmers often lacked access to key inputs and extension services, which limited the overall poverty alleviation impact.
In recent years, the Growth Enhancement Support Scheme (GES), introduced in 2012, has targeted smallholder farmers directly through mobile technology to provide subsidized agricultural inputs. This initiative aimed to reduce the role of intermediaries and improve input delivery. According to Liverpool-Tasie et al. (2017), the GES significantly improved farmers’ access to fertilizers and improved cassava stems, which in turn raised yields. However, issues such as administrative bottlenecks, inadequate training, and infrastructural challenges hindered its full potential to uplift rural communities from poverty.
Studies assessing the impact of subsidies on farm income and poverty reduction provide mixed results. Adebayo and Adeola (2020) found that government subsidies significantly increased cassava farmers’ profitability in Southwest Nigeria, with positive effects on household income and food security. However, the study also highlighted that the absence of complementary services such as credit access, storage facilities, and market linkages limited the broader welfare benefits. This suggests that subsidies alone may not be sufficient to reduce poverty unless they are part of a more comprehensive rural development strategy.
Another important consideration is the equity of subsidy distribution. Research by Ogunniyi et al. (2016) found that elite capture and corruption often skewed subsidy benefits towards politically connected or wealthier farmers. As a result, the poorest households—those most in need of support—were often excluded from subsidy programs. This limits the poverty-alleviating potential of subsidies and calls for reforms in subsidy administration to improve transparency, targeting, and accountability.
Furthermore, while government subsidies have had a positive effect on cassava production in Nigeria, their impact on poverty alleviation has been constrained by issues of access, inefficiency, and poor implementation. For subsidies to translate effectively into poverty reduction, they must be integrated with broader support mechanisms including extension services, credit access, infrastructure, and inclusive policy design. Ensuring that the most vulnerable farmers benefit from these programs will be critical in leveraging cassava’s potential for sustainable rural development.
- Statement of the Problem
Cassava is one of the most important staple crops in Benue State, particularly in Makurdi Local Government Area (LGA), where a large portion of the population depends on its cultivation for food and income. Over the years, the Nigerian government has introduced various subsidy programs targeting agricultural inputs such as fertilizers, improved seeds, herbicides, and extension services to enhance agricultural productivity. These programs are intended to empower smallholder farmers, boost crop yields, and ultimately reduce poverty. However, despite the implementation of these subsidies, many rural households in Makurdi continue to experience low productivity and economic hardship, raising questions about the actual impact of such interventions.
One of the core challenges is the disconnect between policy design and grassroots realities. Many cassava farmers in Makurdi LGA have limited access to government-subsidized inputs due to poor targeting mechanisms, inadequate awareness, and bureaucratic bottlenecks. As a result, the intended beneficiaries—smallholder farmers—often miss out, while more influential or connected individuals may capture the benefits. This situation not only undermines the goals of the subsidy programs but also perpetuates inequality and poverty among the rural poor, who form the backbone of cassava production in the region.
In addition, there is insufficient evidence on whether the government subsidies have significantly improved cassava yield and income levels among farmers in Makurdi. While some anecdotal reports suggest marginal improvements in productivity, these may not be consistent or substantial enough to contribute meaningfully to poverty reduction. The lack of empirical data on the effectiveness of these subsidies in the local context makes it difficult to assess the return on investment and determine whether current agricultural support systems are meeting their objectives.
Another problem lies in the sustainability of government interventions. Many subsidy programs are short-lived or suffer from inconsistent funding and political interference, leading to frequent policy changes that confuse farmers and disrupt long-term planning. In Makurdi, this instability may discourage farmers from relying on government support or investing in improved farming practices, thereby limiting the potential impact on cassava production and household income levels. This raises concerns about the long-term viability of using subsidies as a strategy for poverty alleviation in the area.
Furthermore, the broader socioeconomic environment in Makurdi poses additional constraints. Issues such as poor rural infrastructure, lack of access to credit, market instability, and limited post-harvest processing and storage facilities reduce the effectiveness of subsidies in improving livelihoods. Even when farmers receive inputs, these complementary challenges often erode the benefits, leaving them vulnerable to poverty despite increased production potential. Without addressing these systemic issues, subsidies alone may not be sufficient to achieve the desired transformation in cassava farming and rural welfare.
In light of these concerns, it becomes critical to investigate the actual effect of government subsidies on cassava production and their implications for poverty alleviation in Makurdi LGA. This study seeks to bridge the knowledge gap by evaluating how effectively subsidies are delivered, their impact on productivity and income, and whether they contribute to meaningful poverty reduction among smallholder cassava farmers in the area. The findings will inform policymakers and stakeholders on how to design more inclusive and impactful agricultural support programs tailored to the needs of local communities.
- Aim and Objectives of the Study
The aim of the study is to examine effect of government subsidies on cassava production and its implication for poverty alleviation in Makurdi Local Government Area of Benue. The specific objectives are:
- To assess the level of government subsidies provided to cassava farmers in Makurdi Local Government Area.
- To analyze the impact of government subsidies on cassava production in the area.
- To evaluate the relationship between cassava production and poverty levels in Makurdi Local Government Area.
- To identify potential challenges and opportunities for increasing cassava production through government subsidies.
- Research Questions
The research questions are buttressed below:
- What is the level of government subsidies provided to cassava farmers in Makurdi Local Government Area?
- How does government subsidies impact cassava production in the area?
- What is the relationship between cassava production and poverty levels in Makurdi Local Government Area?
- What are the potential challenges and opportunities for increasing cassava production through government subsidies in the area?
- Research Hypothesis
The hypothetical statement of the study is buttressed below:
Ho: Government subsidies has no effect on cassava production
H1: Government subsidies has effect on cassava production
1.6. Significance of the Study
This study is significant as it provides a clearer understanding of how government subsidies impact cassava production and contribute to poverty alleviation at the grassroots level, particularly in Makurdi Local Government Area of Benue State. Cassava is a major source of livelihood for many households in the area, and government interventions are often aimed at enhancing their productivity and income. By examining the direct effects of subsidies on cassava farming, this research will generate valuable insights into whether these policies are achieving their intended outcomes.
The study will be beneficial to policymakers and government agencies involved in agricultural development. It will provide evidence-based recommendations on how to improve the design and implementation of subsidy programs to ensure they reach the intended beneficiaries—especially smallholder and vulnerable farmers. These insights can guide future policy adjustments and enhance the efficiency and transparency of agricultural support systems in Nigeria.
For agricultural extension officers and development practitioners, the study will highlight the strengths and weaknesses of current subsidy delivery mechanisms and how they affect farmers’ access to inputs and productivity. Understanding these dynamics will help field officers better engage with farmers, tailor support services, and advocate for more responsive and inclusive subsidy schemes that address real constraints faced by rural farmers.
The research is also significant to academics and researchers as it contributes to the existing body of knowledge on agricultural policy, food security, and poverty alleviation. It provides a case study from a specific region—Makurdi LGA—which may be compared with other localities to develop broader conclusions or models applicable across Nigeria or similar developing country contexts. The findings may also spark further research on complementary topics such as market access, rural finance, or gender equity in agricultural support.
Importantly, the study will give a voice to smallholder cassava farmers in Makurdi by capturing their lived experiences with government subsidies. Their perspectives, challenges, and suggestions can inform more grounded and people-centered policies. Understanding how these farmers perceive and interact with government interventions is crucial for building trust and cooperation between rural communities and public institutions.
Lastly, the study has practical implications for poverty reduction strategies. If the findings show that subsidies significantly enhance cassava yields and incomes, it will reinforce the case for strengthening such programs. On the other hand, if the impact is minimal or uneven, it will highlight the need for a more comprehensive and integrated approach to rural development—one that combines subsidies with access to markets, infrastructure, finance, and training. Ultimately, the study will help shape more effective solutions to rural poverty in Benue State and beyond.
- Scope of the Study
The study examines the effect of government subsidies on cassava production and its implication for poverty alleviation in Makurdi Local Government Area of Benue. The study is limited to selected Farmers in Makurdi Local Government Area of Benue
1.8. Operational Definition of Terms
- Effect: An effect is the result or outcome that is caused by a particular action or condition. In research, it refers to the impact one variable has on another.
- Government Subsidies: Government subsidies are financial supports or incentives provided by the government to individuals, organizations, or industries to reduce costs and encourage specific activities—such as agricultural production.
- Cassava Production: Cassava production refers to the process of cultivating and harvesting cassava, a starchy root crop commonly grown in tropical regions and used for food, animal feed, and industrial purposes.
- Implication: An implication is a possible consequence or outcome of an action, decision, or event. It often refers to the broader significance or impact of something.
- Poverty Alleviation: Poverty alleviation refers to strategies, programs, and efforts aimed at reducing the level of poverty in a community or population, often by improving access to income, education, healthcare, and other essential resources.