ABSTRACT
In the context of addressing youth unemployment in Nigeria, agriculture has been recognized as a highly promising sector that offers significant employment opportunities, capable of positively transforming the economic status of young individuals. Consequently, the Nigerian government, in collaboration with development partners, has been implementing various agricultural programs aimed at empowering young people through agribusiness for several years. However, there is a lack of concrete evidence regarding the effectiveness of these initiatives. Therefore, this study aimed to empirically evaluate the impact of an agricultural training program on the performance and empowerment of youth agripreneurs, focusing on the case of the Fadama GUYS program in Nigeria. The study collected primary data from a sample of 977 respondents, consisting of 455 program participants and 522 non-participants, across three states in Nigeria. To analyze the impact of the program on youth agripreneurship performance, the study employed the Propensity Score Matching method. The study identified several factors that significantly influenced participation in the program, including gender, level of formal education, intention to engage in agribusiness, and perception of training and agribusiness. The impact analysis revealed a positive and statistically significant effect of the program on agripreneurship performance. To examine the impact of training on empowerment, the study utilized a three-stage estimation procedure, combining an endogenous treatment effect regression model with a Tobit model. The results indicated that training, as facilitated by improved agripreneurship performance, contributed to youth empowerment. Based on these findings, the study concluded that participation in training led to enhanced performance and empowerment among youth agripreneurs. Therefore, it is recommended that stakeholders seeking to empower young people through agribusiness should develop interventions and strategies to alter youths' perception of agribusiness, encouraging their active involvement in agricultural programs. Furthermore, there is a need to increase investments in agricultural training, as demonstrated by the case study.
TABLE OF CONTENTS
DECLARATION i
ACKNOWLEDGEMENT ii
ABSTRACT iii
TABLE OF CONTENTS iv
LISTS OF TABLES viii
LISTS OF FIGURES ix
LIST OF ABBREVIATIONS AND ACRONYMS x
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 2
1.1.1 Youth Bulge 4
1.1.2 Entrepreneurship as an Intervention to Reduce Youth Unemployment 5
1.2 Statement of the Research Problem 7
1.3 Objectives 9
1.4 Research Hypotheses 9
1.5 Significance of the Study 10
1.6 Organization of the Thesis 11
CHAPTER TWO: LITERATURE REVIEW
2.1 Definition of Terms 12
2.2 Linkages between Entrepreneurship, Employment Creation and Empowerment 13
2.3 Review of Empirical and Related Literature 14
2.3.1 Factors Influencing Youth Participation in Agricultural Programmes 14
2.3.2 Youth Engagement in Agribusiness 16
2.3.3 Factor Influencing Youth Engagement in Agribusiness 18
2.3.4 Entrepreneurship Training and Youth Entrepreneurship Performance 20
2.3.5 Entrepreneurship Training and Youth Empowerment 22
2.4 Empirical Review of Previous Impact Assessment Studies 26
2.5 Theoretical Framework 29
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Conceptual Framework 31
3.2 Study Area 34
3.2.1 Abia State 34
3.2.2 Ekiti State 35
3.2.3 Kebbi State 36
3.3 Research Design 36
3.4 Methods of Data Collection 37
3.4.1 Sampling Procedure and Sample Size 37
3.4.2 Data Type 39
3.4.3 Data Collection Methods 39
3.5 Data Analysis 40
3.5.1 Factors Influencing Youth Decision to Participate in the Training Programme 40
3.5.2 Factors Influencing Youth Decision to Engage in Agribusiness 45
3.5.2.1 Model specification 45
3.5.2.2 Description of Variables in the Outcome Model 47
3.5.3 Impact of Training on Youth Agripreneurship Performance 49
3.5.3.1 Measure of Agripreneurship performance 49
3.5.3.2 Model Specification 50
3.5.4 Impact of Training on Youth Empowerment 51
3.5.4.1 Measurement of Youth Empowerment 51
3.5.4.2 Three-Stage Model Specification 53
3.6 Model Diagnostic tests 56
3.6.1 Diagnostic Tests for the Logit Model 56
3.6.2 Diagnostic tests for the Propensity Score Matching 57
CHAPTER FOUR: RESULTS AND DISCUSSION
4.1 Socio-economic and Farm Characteristics 60
4.2 Analysis of Agripreneurship Performance Indicators 63
4.3 Factors Impeding Youth Participation in Agribusiness 64
4.4 Factors Influencing the Likelihood of Participation in the Fadama GUYS Programme 65
4.5 Determinants of Youth Engagement in Agribusiness 71
4.6 Impact of Programme Training on Agripreneurship Performance 75
4.6.1 Results of PSM Diagnosis Test 75
4.6.1.1 Results of Different Matching Algorithm 75
4.6.1.2 Result of the Validity Test 76
4.6.1.3 Results of Balancing Test for Covariates 77
4.6.1.4 The Quality of Matching 78
4.6.1.5 Result of the Sensitivity Analysis 79
4.6.2 Impact Results 80
4.7 Impact of Programme Training on Youth Empowerment 80
4.7.1 Results of the Endogenous Treatment Effect Regression Model 80
4.7.2 Impact Results 82
4.7.3 Drivers of Youth Empowerment 83
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary 86
5.2 Conclusions 88
5.3 Recommendations 89
REFERENCES 91
Appendix 1: Correlation Matrix for Logistic Regression Model 114
Appendix 2: The Variance Inflation Factor (VIF) Diagnostic Test Results 115
Appendix 3: Scree Plot of Eigenvalues after PCA for Empowerment Index 116
Appendix 4: Scree Plot of Eigenvalues after PCA for Asset Index 116
Appendix 5: Survey Instrument 117
LISTS OF TABLES
Table 3. 1: Description of Variables in the Logit Model 41
Table 3. 2: Description of Variables in the Heckprob Outcome 47
Table 3. 3: Indicators of Youth Empowerment 52
Table 4. 1: Socio-Economic and Farm Characteristics 61
Table 4. 2: Comparison of the Means of Respondents Agripreneurship Indicators 63
Table 4. 3: Factors Influencing Youth Participation in the Programme Training 67
Table 4. 4: Determinants of Youth Engagement in Agribusiness 72
Table 4. 5: Comparison of the Performance of Matching Algorithms 76
Table 4. 6: Covariate Balancing Test for Selection Bias after Matching 78
Table 4. 7: Chi-Square Test for Joint Significance 79
Table 4. 8: Indicators of Matching Quality and Robustness of Result 79
Table 4. 9: Impact of Training Programme on Youth Agripreneurship Performance 80
Table 4. 10: Results of the Endogenous Treatment Effect Regression Model 81
Table 4. 11: Impact of Agricultural Training on Youth Empowerment 83
LISTS OF FIGURES
Figure 3. 1: Conceptual Framework 33
Figure 4. 1: Factors Impeding Engagement in Agribusiness 65
Figure 4. 2: Common Support Graph for NNM Algorithm 77
LIST OF ABBREVIATIONS AND ACRONYMS
AERC – Africa Economic Research Consortium ATE – Average Treatment Effect
ATT – Average Treatment Effect on the Treated CBM – Calliper-Based Matching
EPM – Entrepreneurship Performance Model
ETER –Endogenous Treatment Effect Regression Model
FAO – Food and Agriculture Organization of the United Nations FIML - Full Information Maximum Likelihood
GHS - General Household Survey
GUYS – Graduates Unemployed Youths and Women Support IITA – International Institute of Tropical Agriculture
ILO – International Labour Organization KBM – Kernel-Based Matching
LIFE – The Livelihood Improvement Family Enterprise LIML – Limited Information Maximum Likelihood MOFA – Ministry of Food and Agriculture
NBS – National Bureau of Statistics
NISER – National Institute of Science Education and Research NNM – Nearest Neighbour Matching
NPC – National Population Commission ODK – Open Data Kit
OECD – Organisation for Economic Cooperation and Development OLS – Ordinary Least Square
PSM – Propensity Score Matching SB – Standardized Bias
SSA – Sub-Saharan Africa UN – United Nations
UNESCO-UNEVOC – United Nations Educational, Scientific and Cultural Organization Vocational Education
USD – United States Dollar
YCAD – Youth Commercial Agriculture Development Programme YEAP – Youth Employment in Agriculture Programme
YISA – Youth Initiatives for Sustainable Agriculture YEDF – Youth Enterprise Development Fund
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Africa has the best population structure in the world. However, the continent is currently in dilemma on whether ‘youth bulge’ is an asset in disguise or a ‘ticking time bomb’ patiently waiting to explode. This is because about 230 million people are aged between 15 and 24 years and forms over 35 per cent of the entire African population, while those in the age group 25 to 34 years accounts for 27 per cent of the entire population (United Nations, 2015). It is worth noting that young people are critical to the social, political and economic development of Africa and could transform the trajectory of Africa’s economy if adequate investment measures and policy framework are put in place. In addition, the youth represent exceptional opportunities and hope for the next generation owing to their zeal and capability to contribute immensely to nation building.
In Sub-Saharan Africa (SSA), majority of young people (70 per cent) are living in the rural areas (International Labour Organisation, 2012), where they are faced with high poverty levels, food insecurity, critical cases of unemployment and underemployment. These areas are characterized by poor health facilities, inadequate access to information and services, poor quality of education and limited skill development opportunities. Thus, youth in these areas are at the centre of a critical economic crisis which limits them in changing their social and economic status as well as their future prospect (Allen et al., 2016). Another major challenge in many SSA countries is the skewness and dysfunctionality of the labour markets against young people (International Labour Organization, 2012). It is unfortunate that today, many young people in the rural areas barely survive on paltry sources of livelihoods, particularly young women who are always marginalized by African cultural practices and norms (Mastercard Foundation, 2015). There are many employed youths who have remained poor despite having jobs. This indicates the poor quality of most of the jobs that are available (International Labour Organization, 2016).
The situation is not different in Nigeria which is largely a youthful country, with about 60 per cent of the population between 18 - 35 years of age (Oduwole, 2015). Youth unemployment is a serious issue in Nigeria. According to Surajo (2016), Over 80 per cent of the Nigerian youths are jobless. Competition for the available few job opportunities has led to continued marginalization and segregation of the already marginalized youth. As a result, there is low transition of young people from school to work which is even tougher for young women who are more prone to underemployment, unemployment, and discrimination than men. According to Kazeem (2016), Nigerian universities and colleges release up to 500,000 graduates annually to the labour market, but the absorption rate of the market is less than 50 per cent, thereby forcing many young people to do unimaginable jobs. It is not surprising that young graduates often become money changers, street vendors, operators of public phones, traders, security officers, for lack of good job opportunities. The issue is further expounded by the slow rate of retirement among public employees coupled with the mismatch between the training youths receive and the skills sought by employers (Brewer, 2013).
Consequently, this high rate of youth unemployment has led to failure of many youths affording their daily basic needs. Thus, majority of young men are forced to join rebel groups or go into illegal acts whereas young women either find themselves in early marriages, early pregnancy or prostitution (Alabi, 2014; Asaju, 2014). Young women have also become completely vulnerable to the extent that they experience sexual and gender-based violence (Kabeer, 2014). The high political instability in the northern part of the country coupled with the economic and social strife in other parts of the country have deepened inequalities between young men and women. Limited livelihood opportunities have severely increased desperation among the youth. The country is on the verge of an internal war if appropriate and permanent solutions to address youth unemployment are not put in place.
Nigeria requires a strong commitment to foster youth employment if it is to respond to the continuous appeal of designing policies that will give young people better opportunities in finding decent jobs. However, policy interventions cannot happen overnight given the current status of the country. At the centre of all possible policy interventions lies the agricultural sector. The country has huge agricultural potentials which have not been fully tapped over decades. According to Lawal (2011), the role played by the agricultural sector in the economic development of any country cannot be overemphasized. It is believed that Nigeria has the capacity to feed her ever-increasing population, eradicate poverty and hunger, harvest the unemployed and underemployed and become the engine of Africa’s economic growth.
1.1.1 Youth Bulge
Youth bulge is a common phenomenon associated with many developing countries, particularly those with history of rapid population growth, high fertility rate and no restriction on birth rate (Ahmed, 2014). It is a challenging issue for the Africa continent. The opportunity cost of ignoring it is already evident in the increasing political and social instability which is more daunting. This is a serious concern to the politically unstable states, where a large number of youths are likely to join the rebel movements due to lack of employment opportunities (Urdal, 2006).
Youth bulge has reflective socio-economic and political impacts as it presents both threats and opportunities. It may be a national asset if relevant policies to enhance youths’ skills and capabilities are put in place; otherwise, it will create a serious social, political and economic challenge to the country (Ahmed, 2014). According to Omoju and Abraham (2014), youth bulge is potentially beneficial to a country as it can propel economic growth and development. Contrary to this opinion, Urdal (2006) opined that, rather than being an asset, youth bulge could pose more problems due to the high rate of risky and negative behaviour associated with youth people. Thus, the consequences of youth bulge depend on the institutional environment and policies of the hosting countries.
Youths are valuable assets that can contribute immensely to economic growth and development (Mcdowell, 2007; Gupta, 2014). Youths on one hand could contribute to the development of different sectors of the economy if their energies are channelled towards legal and profitable activities. However, in Africa, youth bulge has compounded the problem of unemployment which is accompanied by high economic and social costs that every African country is struggling to pay (Schoof, 2006).
1.1.2 Entrepreneurship as an Intervention to Reduce Youth Unemployment
Many African countries including Nigeria, are currently experiencing economic hiccups. The current challenge of youth employment in Nigeria is a clear indication that there is a need for urgent policy- and programme-level interventions. One of the initiatives taken by the Federal Government of Nigeria was the inclusion of entrepreneurship studies in the curriculum of tertiary institutions (Aliu & Ibe, 2008; Olorundare & Kayode, 2014). Even though much research has not focused on assessing the impact of this intervention, majority of graduates in Nigeria are forced to depend on the skills acquired during these entrepreneurship classes (Bello, 2018).
In recent years, youth entrepreneurship has gained some more importance all over the world as a means of indorsing employment opportunities and stimulating local, regional and global development (Sitoula, 2015). According to Mohamed and AliSheikh (2017), entrepreneurship has been recognized as an important instrument which could help young people to change their attitude as well as acquire relevant skills for economic and social empowerment. White and Kenyon (2000) posited that entrepreneurship is crucial for promoting resilience and innovation among youths. The result of their study showed that youth enterprises give young people, particularly the marginalized ones, a sense of ‘meaning’ and ‘belonging’ which is capable of shaping their identity.
Nigeria, just like most countries of the world, has adopted entrepreneurship as a strategic approach to facilitate economic participation and create employment opportunities among young people. This interest in youth entrepreneurship was obviously stirred up by the consistent rise in the rate of unemployment, poverty level, and the high reliance of young people on limited white-collar jobs. Olorundare and Kayode (2014) strongly opined that entrepreneurship activity will bring about social changes through generation of wealth.
In addition to national efforts, many development partners including the World Bank, have come to support local stakeholders to facilitate youth entrepreneurship development, particularly, in the field of Agriculture. The agricultural sector has been reported to hold high employment potentials for young people provided it is supported by adequate investments, a conducive legal environment and appropriate policy frameworks ( Koira, 2014; Girard, 2016). In view of this, the Nigerian government with the support of development partners have shown their political commitment towards empowering young people through agricultural training. According to Yami et al. (2019), in an effort to reduce youth dependence on formal jobs, (which compounds the problem of unemployment) there is increasing investment in agricultural programmes aimed at promoting youth participation in agribusiness. According to Awogbenle and Iwuamadi (2010), there were remarkable numbers of initiatives by various administrations between 1986 and 2010 to promote youth empowerment through the creation of gainful self-employment opportunities. Examples of such initiatives include Npower, Youth Commercial Agriculture Development Programme (YCAD), Youth Employment in Agriculture Programme (YEAP), Youth Initiatives for Sustainable Agriculture (YISA), The Livelihood Improvement Family Enterprise (LIFE), and the Fadama Graduate Unemployed Youths and Women Support (GUYS) Programme whose only activity was to train youths in the field agribusiness.
The common objectives of these programmes were to reduce youth unemployment and ensure youths are empowered to be economically stable. To achieve this, their common activities include skills development, facilitating access to resources, and how to use technologies in agribusiness (Yami et al., 2019). For instance, training on agribusiness management is expected to help the youths to successfully run and manage an agribusiness enterprise. However, very little is known on the success or failure of these activities in facilitating youth agripreneurship performance and empowerment. Thus, the extent to which these programmes are able to achieve their objective has to be examined so as to provide evidence which can inform practical policy formulation on youth agripreneurship.
1.2 Statement of the Research Problem
Studies have shown that the agricultural sector is capable of absorbing over 70 per cent of Nigeria population, thereby creating jobs for people in different agribusiness areas (Nwajiuba, 2012; Ogbalubi & Wokocha, 2013; Ogunleye, 2017). Thus, as a strategy to reduce youth unemployment, agripreneurship is increasingly being adopted as a valuable and significant means of creating job opportunities, improving the livelihoods and facilitating the economic independence of young people. Government organizations and other development stakeholders have come up to support youth entrepreneurship development and empowerment by organizing youth-specific training programmes, particularly, in the field of Agriculture. According to Awogbenle and Iwuamadi (2010) and Yami et al. (2019), there have been numerous interventions aimed at achieving youth empowerment through agribusiness in Nigeria. An example of such programmes is the Fadama GUYS programme, which was implemented in 2017 under a tri-partite agreement between the Federal and State government of Nigeria and the World bank. Many youths have been trained under the GUYS programme but, its impact on youths economic status has not been assessed since much research has not been conducted to provide empirical evidence on the success and challenges. This corroborates the findings of Yami et al. (2019) that even though there have been lots of interventions, there is no or little empirical evidence on the success or failure of these interventions, which has made it difficult to make practical policy recommendations from them.
Most studies on entrepreneurial training programmes are not sector-specific. For instance, Nasra and Ali (2017) conducted a related study in Somalia and found that indeed training was of significant benefit to youth enterprise. However, the study was not based on agricultural training programmes and focused on self-employed youths. Also, Karanja (2014) found that entrepreneurial training significantly influenced the performance of youth enterprises in Kenya. However, the study primarily focused on youth enterprises while ignoring unemployed youths. This study, therefore, sought to give a more comprehensive and clearer picture of youth entrepreneurship, particularly, youth agripreneurship and specifically the role of agricultural training on performance as well as the sustainability and success of these programmes.
Furthermore, it is worth mentioning that several studies have been conducted on the development of youth entrepreneurship in Nigeria but, only a few have analysed the impact of agricultural training programmes on youth agripreneurship using a case study. Many studies seem to focus on factors determining participation rather than measuring the impact on economic outcomes. For instance, Awogbenle and Iwuamadi, (2010); Okoli and Okoli, (2013); Chidiebere et al. (2014) explained the significance of education/training in fostering entrepreneurship development but did not assess the impact of training either on performance or empowerment. In addition, the study intends to address this research gap by assessing the impact of agricultural training programme on youth agripreneurship performance and empowerment so as to broaden knowledge of the subject, narrow the knowledge gap in the area and provide empirical evidence which could contribute to policy formulation.
1.3 Objectives
The main objective of the study was to assess the impact of agricultural training programmes on youth agripreneurship performance and empowerment, using the case of Fadama GUYS Programme in Nigeria. The specific objectives were to:
1. Identify factors influencing youth participation in the training programme.
2. Identify factors influencing youth engagement in agribusiness.
3. Analyse the impact of the Programme training on youth agrireneurship performance.
4. Analyse the impact of the Programme training on youth empowerment.
1.4 Research Hypotheses
To achieve the objectives of the study, the following null hypotheses were tested.
1. Years of formal education did not influence youths’ decision to participate in the Programme training.
2. Perception of agribusiness did not influence youths’ decision to participate in the Programme training.
3. Ownership of agribusiness enterprise did not influence youths’ decision to participate in the Programme training.
4. Access to land and credit does not influence youths’ decision to engage in agribusiness.
5. Years of formal education does not influence youths’ decision to engage in agribusiness.
6. Participating in the Fadama GUYS programme has no impact on youth agripreneurship performance and empowerment.
1.5 Significance of the Study
Lack of empirical evidence on the impact of entrepreneurship programmes has made it difficult to reach a logical conclusion on what worked or what did not (Yami et al., 2019). Thus, identifying factors which influence youth participation in agricultural programmes will provide relevant information to policymakers, the Federal Ministry of Agriculture and other relevant stakeholders which could be used in amending and formulating agricultural policies and initiatives that can motivate youth to participate in agricultural development. Increased youth participation in these agriculture has two implications on the economy. Firstly, it will help to crop more youths into the agricultural sector which will in turn help in reducing youth unemployment. Secondly, it will contribute to increased food production, thereby, contributing to the achievement of SDGs 2 on zero hunger.
Empirical evidence of the Programme impact on youth agripreneurship performance and empowerment generated from this study will inform youths on the benefits of participating in the Fadama GUYS programme and other similar programmes which could stimulate their interest to consider agribusiness as a career option. This will not only improve the outlook of agriculture but also contribute to the economic empowerment and social status of the youths. In addition, this will contribute towards the achievement of SDGs 8 on decent work and economic growth.
The methodology used to assess the Programme impact on empowerment will contribute greatly to the body of literature on impact assessment of development programmes. Specifically, it will guide future researchers on how to conceptualize and model similar cases in other countries. The study has contributed empirical evidence which can inform practical policies on the design and implementation of agricultural programmes. The findings are also expected to significantly contribute to the national and global efforts of stimulating youth engagement in agribusiness for the purpose of reducing youth unemployment and ensuring food nutrition and security in the world.
1.6 Organization of the Thesis
The thesis is organized into five chapters. Relevant literature on each issue as well as existing impact assessment methods and past empirical studies on impact assessment are discussed in Chapter 2. The methodology capturing data collection and methods of analysis are presented in Chapter 3. The results and relevant discussions arising from the analysed data are presented in Chapter 4 and Chapter 5 presents the summary, conclusions and recommendations based on the study findings.
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