Welfare benefits associated with access to agricultural extension services in Nigeria

Abstract

Improving the agricultural productivity and welfare of rural farming households is important for many governments, especially in low- and middle-income countries like Nigeria, where agriculture plays an important role in the economy. Increasing access to agricultural extension is often suggested as a way to raise farmer productivity and incomes. However, empirical estimations of the causal impact of agricultural extension services in Nigeria are few, especially those that address internal and external validity concerns. Improved estimation of the effectiveness of agricultural extension can support evidence-informed decision-making by agricultural policymakers. In this study we used three waves of the Nigerian General Household Survey to advance understanding of the factors associated with farmers’ use of agricultural extension services, and to examine how receiving extension support might improve welfare among rural farm households in Nigeria. Through random effects regression with endogenous treatment effects, we found that asset ownership, use of inorganic fertiliser, and access to credit were positively associated with the use of extension services. We also found positive associations between use of extension services and household food security and assets. Receiving agricultural extension service was associated with a 16% reduction in food insecurity and a 64% increase in household assets. Further disaggregating extension services by the type of advice obtained showed positive associations with welfare outcomes for households that received advice on new seeds and fertiliser, but mixed results for those who received advice on animal care and marketing. Receiving advice on new seed varieties and fertilisers was associated with a 12–15% reduction in food insecurity and a 92–113% increase in household assets. Our findings add to the body of evidence that suggests enhancing farmers’ access to extension can improve the welfare of farmers. Government policy needs to consider factors that limit or promote farmers’ access to agricultural extension services, so that Nigerian farmers can equitably benefit from the potential welfare gains associated with agricultural extension.