Central to any other economic activity in production is the issue of efficiency. This paper employed the stochastic frontier production function to analyse the technical efficiency of 232 randomly selected artisanal fishermen in Akwa Ibom...
moreCentral to any other economic activity in production is the issue of efficiency. This paper employed the stochastic frontier production function to analyse the technical efficiency of 232 randomly selected artisanal fishermen in Akwa Ibom State, Nigeria. The result shows that 96.7% of contract, 60.66% of the former contract, 26.25% of the non-contract and 94.8% of all fishers were 90% technology efficient; minimum efficiency were 0.82, 0.53, 0.71 and 0.86 respectively while the maximum and mean efficiency was 0.99 and 0.98 for all the categorised fishermen. Introduction Many poor rural dwellers rely on fisheries as their primary livelihood source especially in the coastal region of the sub Saharan Africa. This is because it provides direct and indirect employment opportunities, income and nutrition. According to IFAD (2004), it contributes to household resilience and reduced vulnerability to natural hazards and economic uncertainty. In Nigeria, it generates more than 3% of the country's foreign exchange earnings and provides paid and self-employment to 8% of the population. Central Bank of Nigeria Annual Report (2012) reported that the fisheries sector contributes 6% to the total GDP at a growth rate of 6%. The government distinguishes between artisanal and aquaculture, the latter being commercial fish farming. The artisanal sector is divided into two categories: small-scale and industrial. The fishery sector in Nigeria is dominated by small scale artisanal fishermen, which involve fishing households using " relatively " small amount of capital and energy, small fishing boats, making short fishing trips close to shore and producing mainly for local consumption (FAO, 2007). Central Bank of Nigeria Annual Report (2012) note that catches from artisanal inland rivers/lakes and artisanal coastal/brackish waters grew by 5.0 and 4.9% respectively. The development was largely attributed to the continued utilization of various constructed and rehabilitated fish cage structures and dam reservoirs across the six (6) geopolitical zones (2 per zone), coupled with the increased activities and investment by the private sector in fish farming. The output of the sub-sector was; however, lower than the estimated national annual demand of 1.5 million tonnes. It is apparent that the success of the agricultural sector in Nigeria is critical for raising living standards and for food self-sufficiency and as a sustainable source of livelihood for a large population. The Nigeria's agriculture programmes, as proposed in the New Agricultural policy for Nigeria has not officially recognises the importance of the fishery sub-sector and has made several attempts over the years to increase its production and productivity through institutional and economic reforms. Such reforms include: the Sea fisheries decrees (No. 30) of 1971, the Exclusive Economic Zone (EEZ) decree of 1978, Agricultural Development Projects (ADPs) established in 1975, the National Council on Agriculture (NCA), the National Institute of Marine Research (NIOMR) and National Institute for Fresh Water Fisheries Research (NIFFR). Other programmes like the National Accelerated Fish Production Programme (NAFPP) was also introduced by the Federal Government with the mandate of supplying fishing inputs to fishermen at a 50% subsidy to increase maximum capture efficiency and the Fish Development Project of Directorate for Food, Roads and Rural Infrastructure (DFRRI) etc. However, the first comprehensive agricultural policy for Nigeria with fisheries as a component was put forward in 1988. The document decentralized the responsibilities to the three tiers of Government in Nigeria-Federal, State and Local Governments. The fisheries policy objectives were: to increase domestic production, increase fish export promotion, employment creation by mechanization of the sector, increase per capita income, development of local fisheries based industries and; rational management and conservation of fisheries resources. All, with the sole purpose of making agricultural production more profitable and competitive. Be that as it may, this policy objective is far from reality. The artisanal fishers on like any other agricultural entrepreneur, typically produce to satisfy both household food needs and profit. With this dual interest in mind, he optimizes his effort and efficiently targets the use of resources. Thus, efficiency becomes an importance determinant in his productive bid. Efficiency which is how effectively the unit produces as large an amount of output as possible, for the purpose of profit maximization, given technology available is the kernel in resource allocation in agriculture. This is because the scope of agricultural production can be expanded and sustained by farmers through efficient use of resources