Rural-Urban Migration and Welfare of Smallholder Farming Households in South-West Nigeria

Oluwaseun Adu, Department of Agricultural Economics, University of Ibadan
Uche Osakede, Bowen University

The migration of labour from rural to urban areas poses a challenge to food security even in rural areas. Remittances from migrants can have some effect on food and non-food expenditure as well as asset accumulation. This is possible where remittances can compensate for lower agricultural productivity of rural households due to labour migration. This study examines the effect of remittances on food and non-food expenditure and asset accumulation in rural areas of South-West Nigeria using the propensity score matching technique. Data for the study is obtained from a self-administered questionnaire in selected local government areas in Ondo and Oyo states. The sample frame used for the study follows the Agricultural Development Programme (ADP) sampling. The direction of the effect of remittances on food and nonfood spending as well as asset accumulation cannot be predicted with certainty. It depends on the expenditure choice of rural households.