EFFECTS OF CASH AND NON-CASH REMITTANCES ON LAND ACQUISITION AND AGRICULTURAL LAND USE AMONG RURAL HOUSEHOLDS IN ABIA STATE, NIGERIA

Abstract

This study investigated the effects of cash and non-cash remittances on land acquisition and agricultural land use in Abia State, Nigeria using cross-sectional data. A multi-stage random sampling technique was used to select 120 respondents, but information from 114 of them was complete and useful for the analysis. A structured questionnaire was used to obtain the required information from the selected respondents. The analytical techniques used involved the multinomial logit and the probit models. The study shows that the average year of schooling is 8.5 years. The average household size is about eight persons. The multinomial logit model result shows that age, educational level and the presence of school children significantly and negatively influence land acquisition by inheritance among the respondents, while household size, cash remittance, and non-cash remittance significantly and positively influence land acquisition by inheritance. In the same vein, age and educational level significantly and negatively influence land acquisition by purchase, while household size and non-cash remittance significantly and positively influence land acquisition by purchase. The estimates of the probit model shows that age, educational level of the household head, presence of school children in the household, years of receiving remittances by the household, cash remittance and non-cash remittances increase the likelihood of using the land acquired for agricultural purposes significantly different from zero. Also household size and expenditure on education of members of households decrease significantly the probability of using the land acquired for agricultural purposes. Therefore, community development programmes and projects with components that address households’ welfare have to be put in place; and public institutions and facilities needed for receiving cash remittance by the households should be provided for easy inflow which will enhance proper data documentation of remittances at the macro-level for national policy formulation.