Socioeconomic Factors Influencing Non-Farm Income Diversification in Rural Nigeria: A Case Study of Yobe State

Abstract

This study examines the determinants of income diversification into non-farming sources among rural farmers, focusing on the influence of demographic and socio-economic factors such as age, gender, marital status, educational level, annual income, farming experience, farm size, and ownership status. Using primary data collected from rural households across six local government areas, the data was analysed using descriptive analysis and chi-square analysis. Chi-square (χ²) analysis was applied to assess the strength of association between these demographic factors and various sources of non-farming income source, including wage employment, self-employment, remittances, and income from livestock. Results indicate significant associations between each demographic factor and income diversification sources, with education, marital status, and income level showing the highest levels of influence. The findings reveal that small-scale farmers diversify their income to mitigate risks associated with agriculture and to achieve economic stability, with the most common sources being wage employment outside agriculture (38.5%) and self-employment (37.8%). This study highlights the role of education in expanding non-farm income opportunities while also illustrating the impact of gender, marital status, and land ownership on diversification sources. Based on these results, the study recommends enhanced access to education and vocational training, improved financial services, and policies that secure land tenure to support sustainable income diversification in rural areas. These insights contribute to a deeper understanding of rural livelihood strategies, offering policy guidance to promote economic resilience and poverty reduction through non-farm income diversification.