Determinants of Livelihood Diversification among Rural Households in Oyo State, Nigeria

Abstract

This study examines the factors influencing livelihood diversification among rural households in Ogo-Oluwa Local Government Area, Oyo State. A multistage sampling technique was employed to select 120 rural households, and data was collected through a structured questionnaire. Descriptive statistics were used to analyze the socioeconomic characteristics, while inferential statistics (logit regression analysis) determined the extent of livelihood diversification among respondents. The findings revealed that the average household size was six members, with an average age of 47 years and an average farming experience of 24.5 years. The mean farm income was $558,750, and 54.17% of respondents were engaged in diverse livelihoods. The results indicated that gender had a statistically significant and negative influence at the 10% level. Education level positively influenced diversification, with statistical significance at the 1% level. Similarly, the dependency ratio, primary occupation, and income were positively associated with diversification, each statistically significant at the 5% level. Support from NGOs and government also showed a positive and significant relationship with diversification at the 1% level. The study highlights the importance of education in equipping farmers with the knowledge to diversify their livelihoods. Additionally, support from the government and organizations can strengthen resilience and foster economic diversification among rural households.