CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Cassava (Manihot esculenta) is one of the most widely cultivated tubers by farmers in Sub-

Sahara Africa. It is one of the most staple food in Nigeria, and can withstand almost every

type of soil. Cassava is the second most essential stable food in terms of per capita food

energy consumed (Food and Agriculture Organization (FAO, 2005). Cassava provides food

and income to above 30 million farmers, huge numbers of processors and traders. It is an

essential source of food for 200 million people – nearly one-third of the population of

sub-Saharan region in Africa (International Institute of Tropical Agriculture (IITA,

2005a). Cassava can be produced at the farm level by farmers, processed into chips, flour

and pellets by processors, and used by agro industries to produce other products like ethanol,

dextrin/adhesive, native and modified starch for other industries (for example, textile, paper,

and wood) (IITA, 2005b; Knipscheer, Ezedinma, Kormawa, Asumugha, Makinde, Okechukwu,

& Dixon (2007). After rice, maize and wheat, cassava is rated the fourth amongst the food

crops that have abundant economic potentials in developing countries (Oladunjoye,

2004).

With its origin in South America, cassava was introduced to Africa by the

Portuguese. Nigeria is presently the leading producer of cassava in the world. Nigeria

produces cassava more than any other country in the world (Ezedinma, Lemchi,

Okechukwu, Ogbe, Akoroda, Sanni, Okoro, llona, Okarter, & Dixon, 2007; Knipscheer et

al., 2007). Its production increased from 34 million metric tonnes a year in 2002, to 54

million metric tonnes (FAO, 2011; Elemo, 2013; Food and Agricultural Organization

1
Statistics (FAOSTAT), 2015). In spite of this, Nigeria only accounts for 0.001% of

the world cassava export market, while Thailand which produces 19.2 million metric

tonnes a year, accounts for 50% of the export in European Union market (Tijani &

Thomas, 2011). The promotion of cassava for export in Nigeria is important to increase

foreign exchange earnings.

Prior to the Federal Government of Nigeria’s Cassava Transformation Initiative

(FGCTI), several cassava multiplication projects had been carried out by the Federal

Government, such as: the Root and Tuber Improvement Programme on Maize and

Cassava Production, anchored by IITA in 1971, Cassava Multiplication Project (CMP)

anchored by IFAD between 1987 and 1999, Root and Tubers Expansion Programme

(RTEP) anchored by IFAD in 2001, among others. These past Programmes raised

Nigeria’s cassava tubers’ productivity (Nweke, 2003; Asenime, 2004; Sanni, Onadipe,

Ilona, Mussagy, Abass & Dixon, 2009); Dimelu, Igbokwe & Obieri, 2009), but failed,

due to the Nigerian cassava products’ lack of competitiveness in the global market as a

result of high production cost and poor product quality, lack of modern processing and

storage technology, inadequate funding, erratic power supply, instability of Government,

Government policies, and absence of rolling plan. Weak marketing and market linkages

for the products, also contributed to the failure of the programmes (Kormawa, 2004; Oke,

2005; Dixon, 2005; Nigerian Tribune, 2008; Oluwasola, 2010; Ogundari & Brümmer,

2010; Onwudinjo, 2012; Olagunju, 2013; Olowa & Olowa, 2014).

In 2003, the Nigerian Government established the Federal Government Cassava

Transformation Initiative FGCTI, with the objective to:

(i) increase primary processing and utilization of cassava; (ii)

absorb the national cassava production glut; (iii) identify and

2
 develop new market opportunities for import substitution and
export; (iv) encourage increased private sector investment in the
establishment of export oriented cassava industries; (v) guarantee the
availability of clean (disease free) plant materials targeted at the emerging
industries; (vi) upsurge the yield, productivity, and increase annual
production to attain global cassava competitiveness; (vii) advocate for
conducive policy and institutional reforms for the advancement of the
Nigerian cassava sector, and integrate the rural poor especially women
and youths into the mainstream of the national economy (Nigeriafirst.org,
2005; Adebayo, 2009).

Studies carried out so far, Awoyinka (2009); Ogunleye and Oladeji (2012);

Onwudiwe, Akarakiri, Agbarajo, Onothoja, Agidi and Oyibo (2015); Donkor, Onakuse,

Bogue and De Los Rios (2016); Ogunleye (2016), among others, on the effect of the 2003

FGCTI intervention on the cassava industry are few. Moreover, the focus of these past

studies was on the effect of the programme on cassava tubers’ productivity and technical

efficiency, market linkages, access to credit and labour cost. These studies concluded that

the FGCTI intervention improved cassava productivity and technical efficiency of

cassava farmers. It helped to enhance, processing for export, cassava farmers’ access to

credit, access to processing equipment, marketing, and established market linkages. It

also provided training packages for cassava equipment producers and cassava processors,

and led to huge investment in the cassava sub sector, by private and public organizations.

In addition, it helped to generate employment in the Nigerian cassava subsector.

However, some problems were occasioned by the programme. These problems include:

cassava glut in some areas of the country, and scarcity in other areas. However, Olukunle

(2016) opined that, the presidential initiative and transformation agenda has been

implemented with little or no impact on industrial utilization, competitiveness and export

of cassava. He further stated that, the export share of Nigeria in the cassava global market

has remained very low even after the implementation of the initiative.

3
 There is no study on the 2003 FGCTI that has adequately assessed the effect of

cassava tubers’ availability to the micro-scale cassava processing enterprises in Southwest

Nigeria; identified the factors influencing efficient processing of cassava by micro-scale

cassava processing enterprises in the study area; determined the effect of the FGCTI on

the efficiency and gross margin of the micro-scale cassava processing enterprises in the

study area; and assessed the influence of the FGCTI on the marketing of cassava products

by the micro-scale cassava processing enterprises in the study area. This study addressed

these shortcomings in the past studies.

1.2 Statements of Research Problem

Prior to the Federal Government of Nigeria’s cassava transformation initiative, several

Cassava Multiplication Projects (CMP) had been carried out by the Federal Government

with assistance from its research institutes and international organizations. These

projects helped in the development of high yielding and disease resistant varieties and

raised Nigeria's cassava production output. However, the emphasis on the increase in

cassava production output was not accompanied by an intention to increase processing and

marketing activities that would mop up the cassava glut that could be occasioned by the

increase in the cassava production. This led to a cyclical glut/shortage situation in the

production output of cassava in Nigeria (Asenime, 2004).

The Federal Government of Nigeria, through its cassava transformation

programme, has tried to mop up the excessive cassava tubers, use cassava as a foreign

earner commodity, and develop the entire cassava industry. Yet, Nigeria only accounts

for 0.001% of the world cassava export market (Tijani & Thomas, 2011). Few studies

4
 (Awoyinka, 2009; Ogunleye & Oladeji, 2012; Onwudiwe et. al., 2015; Ohimain, 2015;

Donkor et al., 2016; Ogunleye, 2016), among others, have been carried out on the effect

of the 2003 Federal Government Cassava Transformation Initiative on the cassava industry.

Most of these studies were on the effect of the programme on cassava farmers’

productivity and efficiency. While these studies concluded that the programme aided the

enhancement of cassava tubers’ productivity, production of processing equipment,

marketing, led to huge investment in the cassava sub sector, and generated employment

in the Nigerian cassava subsector, the studies also acknowledged that there were

problems of cassava glut in some areas of the country, and scarcity in other areas.

Meanwhile, Olukunle (2016) disclosed that, the presidential initiative and

transformation agenda has been implemented with little or no impact on industrial

utilization, competitiveness and export of cassava. He further affirmed that, the export

share of Nigeria in the cassava global market has remained very low even after the

implementation of the initiative. There is no study on the 2003 Federal Government of

Nigeria’s Cassava Transformation Initiative that has adequately assessed the effect of the

FGCTI on the performance of the micro-scale cassava processing sector. What is the effect

of the Federal Government of Nigeria’s Cassava Transformation Initiative on the

performance of the Micro-Scale cassava processing sector? The quest for answers to this

question, necessitated the need for this study. To guide this study, some research

questions were raised.

1.3 Research Questions

The following research questions were answered in this study:

(i) What is the effect of the FGCTI on cassava tubers’ availability to the micro-scale

cassava processing enterprises in Southwest Nigeria?

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 (ii) What are the factors influencing efficient processing of cassava by the micro-scale

cassava processing enterprises in the study area?

(iii) What is the effect of the FGCTI on the efficiency of the micro-scale cassava

processing enterprises in the study area?

(iv) What is the effect of the FGCTI on the profitability of the micro-scale cassava

processing enterprises in the study area?; and

(v) What is the influence of the FGCTI on the marketing of cassava products by the

micro-scale cassava processing enterprises in the study area?

1.4 Objectives of the Study

The general objective of this study is to evaluate the effect of the presidential cassava

transformation initiative on micro-scale cassava processing enterprises’ performance in

Southwest Nigeria.

The specific objectives of the study are to:

(i) assess the effect of the FGCTI on cassava tubers’ availability to micro-scale

cassava processing enterprises in Southwest Nigeria;

(ii) identify the factors influencing efficient processing of cassava by the micro-scale

cassava processing enterprises in the study area;

(iii) determine the effect of the FGCTI on the efficiency of the micro-scale cassava

processing enterprises in the study area;

(iv) examine the effect of the FGCTI on the profitability of the micro-scale cassava

processing enterprises in the study area; and

(v) assess the influence of the FGCTI on the marketing of cassava products by the

micro-scale cassava processing enterprises in the study area.

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1.5 Research Hypotheses

The research hypotheses for the study are stated in null form as follows:

Ho1: There is no significant difference in cassava tubers availability to micro-scale

cassava processing enterprises, after the FGCTI in Southwest Nigeria;

Ho2: There is no significant difference in the efficiency of micro-scale cassava

processing enterprises, after the FGCTI in the study area;

Ho3: There is no significant difference in the profitability of micro-scale cassava

processing enterprises, after the FGCTI in the study area;

Ho4: There is no significant difference in the local marketing of cassava products by the

micro-scale cassava processing enterprises in the study area; and

Ho5: There is no significant difference in the International marketing of cassava

products by the micro-scale cassava processing enterprises in the study area.

1.6 Significance of the Study

This study is significant because, although cassava transformation programmes are not new

in Nigeria, the Federal Government Cassava Transformation Initiative, was a new

perception of cassava industry’s development in Nigeria. This was the first time a concerted

effort was made towards the expansion of primary processing and utilization to

absorb the national cassava production glut. Also, extensive effort was made to identify

and develop new market opportunities for import substitution and export, and expand

annual production to achieve global cassava competitiveness, and diversification of the

sources of the nation’s foreign exchange earnings. Due to the newness of this perception of

cassava processing industry’s development, few research work is available on this area.

7
 This study is relevant as it serves as a means of revealing information to the

Federal Government of Nigeria, donors and collaborators in the cassava transformation

initiative, in the areas of availability of cassava tubers to the micro-scale cassava

processing enterprises, their efficiency, and also the local and international marketing of

their composite products. The findings of this study will assist policy makers, institutions,

investors and business organizations (public or private) involved in cassava

transformation in Nigeria, to formulate achievable policies, programmes, and strategies

that would help in transforming the cassava processing industry in particular and the

cassava industry in Nigeria, in general. It would also make available relevant literature for

scholars and students who desire to carry out studies on cassava transformation

programmes.

1.7 Scope of the Study

This study focused on the micro-scale cassava processing enterprises that participated in
the Federal Government of Nigeria’s Cassava Transformation Initiative in Southwest
region in Nigeria. This region comprises six States (Ekiti, Lagos, Ogun, Ondo, Osun,
Oyo,). This geopolitical zone was selected through purposive sampling, with the intention
of using the outcome of the study to generalize the effectiveness of the programme on the
micro-scale cassava processing enterprises’ performance in Nigeria. The choice of the
zone was informed by the high production and processing of cassava in the area.
However, the large-scale processors like Ekha Agro Farms which has over N2.4 billion in
Glucose Syrup plant along Lagos/Ibadan Expressway, Thai Farms at Ijebu Ode in Ogun
State, Teejay Farms at Ijabe, Osun State, Matner Farms in Ondo State, were purposely
left out of this study because they were very few, say average of one in each of the six
selected States and some of them had stopped operation during the data collection period
of this study. In this study, micro-scale Cassava Processing Enterprises (MSCPEs), are
referred to as, cassava processing enterprises, that carry on businesses with less than
10 employees. A study by Dada (2004) revealed that majority (over 70%) of the cassava

8
 processors in Nigeria are small-scale enterprises. The period of the study is was 1999 to
2015. This period was chosen because the study tested for the performance of the
MSCPEs’ performance before and after the programme which started in 2003. However,
most of the participants joined the programme in 2006.
CHAPTER TWO

LITERATURE REVIEW

2.1 Conceptual Review

Under conceptual review, the concept of micro, small and medium scale enterprises,

initiative, transformation, performance, efficiency, gross margin, profit and marketing

were discussed.

2.1.1 Definition of micro, small and medium scale enterprises, initiative, transformation,

performance, efficiency, gross margin and marketing

Definition of Micro, Small and Medium Scale Enterprises (MSMSEs) vary from one

country to another. The definition commonly depends on the value of assets or number of

employees (Ahiawodzi & Adade, 2012). The Central Bank of Nigeria (CBN) annual

report (2010), defined SME as an enterprise with a maximum asset base of 200 million

Naira, excluding working capital and land, with minimum of 10 and maximum of 300

employees. The National Policy on micro, small and medium scale enterprises (2012),

categorized MSMEs in table 2.1. However, United States Agency for International

Development (USAID) (2004) defined Micro Enterprises as, enterprises that employ five

or less workers in addition to unpaid family labour, small enterprises as enterprises,

carrying on businesses in the formal sector with five to twenty employees, and medium

enterprises as enterprises that employ 21 to 50 employees. Initiative means a new strategy

for dealing with a problem in order to achieve a specific purpose (Oxford Advanced

9
Learner’s Dictionary). Oyewale and Ogunleye (2013), defined transformation as a total

change and evolution.

Junevicius and Seniunaite (2007) defined performance as, efficiency (ability to

utilize minimum resources to produce an anticipated volume of output) and effectiveness

(the degree at which a firm is able to attain its Stated goal).

Table 2.1: Classification of SMEs by Assets and Employment

S/N Size Category Employment Assets (N Million)

(excl. land and
buildings)
1 Micro Enterprises Less than 10 Less than 5
2 Small Enterprises 10 to 49 5 to less than 50
3 Medium Enterprises 50 to 199 50 to less than 500
Sources: National Policy on MSMEs (2012)

10
They further Stated that performance is the relationship between effective and minimal

cost (“economy”), between effective cost and output accomplished (“efficiency”) and

between input and outcome attained (“effectiveness). Effectiveness can be measured by

comparing actual outcome with some set standards that are generally associated with the

goal of a firm. Also, Panayides, Charnes and Pallis (2009), affirmed that efficiency is a

relative term that can be measured by the process of benchmarking. There are two types

of efficiency, Technical and Scale efficiency. Wang, Cullinane and Song (2005) referred

to technical efficiency as relative output over time or space or both and scale efficiency

as possible deviation between real and ideal production size. While Notteboom, Coeck,

and Van den Broeck (2000), gave an example of efficiency by saying that, a terminal is

efficient if it produces a maximum output (container traffic in twenty Foot Equivalent

Unit (TEU)) for given inputs (terminal superstructure).

Gross Margin (GM) was defined by Olukosi and Erhabor (2005) as the difference

between the Gross Farm Income (GFI) and the Total Variable Cost (TVC). It is the

disparity between revenue and cost of goods sold, divided by revenue, represented in

percentage. However, it is usually, calculated as the selling price of an item, minus the

cost of goods sold (Farris & Bendle, 2012). Gross Margin is used to measure

profitability, with the supposition that Fixed Cost (FC) is insignificant, like the situation

11
 with the production of cassava, which is typically carried out in small- scale (Olukosi &

Erhabor, 2005; Arene, 2006). Furthermore, there is a presumption that, analysis is carried

out within a short period of time (Olukosi & Erhabor, 2005). Olukosi and Ogungbile

(2005) and Olukosi and Isitor (1990) defined Variable Costs (VC) as the costs that

change along with production output. Spurlock and Gills (1997) referred to variable costs

as the costs managers can control in the short run, and those costs and that increase along

with total planned production. While Fixed costs (FC) are the costs that do not change

along with production output (like land, rent among others). Total Cost (TC) is the

addition of Total Fixed Cost (TFC) and Total Variable Cost (TVC), while profit is Total

Revenue (TR) minus TC. Kotler and Armstrong (2010) defined marketing as “the process

by which companies create value for customers and build strong customer relationships

in order to capture value from customers in return”. It is important that cassava

processors understand the needs and wants of their national and international customers

and potential customers, develop the products that can satisfy these needs and wants, and

supply these products to the customers in exchange for local and foreign currency.

2.2 Empirical Review of Literature

There are few literature on the 2003 Federal Government cassava transformation initiative.

However, past related literature to this study, will be used to support this study.

2.2.1 Empirical studies on the effect of the presidential cassava transformation initiative on cassava

farmers and processors’ output, availability of inputs, poverty alleviation, efficiency and

marketing

2.2.6 Past studies on the problems associated with marketing and sales of Nigerian

12
 cassava products in the local and international markets

2.2.7 Success story of the 2003 Nigeria cassava transformation initiative

2.3 Theoretical Review

Some theories that are related to this study were reviewed, these include:

2.3.1 Structuralist theory

The structuralist theory is related to this study because it gives a theoretical underpinning

for good understanding of reasons for government’s intervention in the development of

industries. As explained in Eboh (2011), Structuralism is a development theory that

emphases structural features which hinder economic advancement of developing

countries. Its focus is on the transformation of a country’s economy from, subsistence

agriculture to a modern, industrial manufacturing and service economy.

The theory advocates major government’s intervention in the economy to propel

the industrial sector and attain an import substitution industrialization. Structuralist

theory posits that Third World countries can only be developed through major

government interventions in the economy. It opined that the Third world countries

decrease their reliance on trade with developed countries, and among themselves, with

the help of government’s intervention in the industrial sectors. This would promote

import substitution, industrialization, structural transformation, propel the growth of the

industrial sectors and lead to self- sustaining growth. It encourages specialization and

technological change which help to transform an agrarian economy into a diversified

economy. One of the recommendations of the structuralist model is that countries should

change their institutional structures because the traditional structures are not effective

enough to lead them to industrialization. Government also needs to play a major role in

the provision of public utilities which is fundamental to industrialization.

13
2.3.2 Classical theory

Unlike the structuralist theory, the classical theory opined that the control by the

government is perceived as interference in the process of producing wealth. Instead,

government should allow people to make their own economic decisions on how they

want their resources to be expended. This is referred to as laissez-faire policy. In Eboh

(2011), he described Adam Smith’s classical treatise titled, “An Inquiry into the Nature

and Causes of the Wealth of Nations” published in 1776, that means, the government

should hand off economic decisions and allow the natural forces of demand and supply

the (invisible hand) to decide the fate of the industries and the economy. That means,

allow free markets. It is only by implementing the laissez-faire policy that Nations would

become wealthy. This theory contradicts government’s intervention policies and

programmes. The theory therefore posits that the Presidential Cassava Transformation

Initiative is unnecessary and that the cassava processing industry should be allowed to

expend whatever they can to develop their industry themselves.

2.3.3 Active learning theory

Active Learning Theory of Erickson and Pakes (1995), proposes that, an organization

searches the economic environment around it vigorously, and invests to improve its

growth under competitive pressure, from inside and outside. The prospective and real

growth of the organization, varies over time in response to the outcomes of the

organization’s own investment and the investment of other actors within the same

market. This theory opined that, the managers or owners of a firm can increase the

efficiency of the firm, by investing in formal training and education. The training and

education enhances the firm’s capabilities, while the government may perhaps support

the firm’s activities by creating an enabling environment for the firm. Therefore, firms

14
 with higher formal education, training, work experience, and government aid, are

expected to grow quicker than those without these qualities. This implies that the owners

of MSCPEs in Nigeria, have invested in the cassava processing industry, and their

capabilities, efficiency and growth, depends on their level of investment on training,

education, and government support, through the creation of an enabling environment, and

the investment of other actors within the same market. MSCPEs in Nigeria, have limited

resources to carryout meaningful investments and operations. Therefore, their successes

can only be attained by government’s intervention, via the provision of financial

assistance, infrastructural facilities, investment in Research and development, capacity

building of employees, and favourable policies to support the programme. Also, the

intervention of other Public/Private stakeholders.

Out of the theories Stated above, the structuralist theory is more applicable in this

study because, it advocates government’s intervention in the development of industries

and economies in order to uplift the standard of life of all citizens and aid economic

growth, development and self-reliance of nations. Cassava processing industry in Nigeria

lacks resources for expansion and development that would help them compete in the free

market. They need infrastructural facilities and protection from intense competition in the

free market to be able to operate efficiently, effectively, profitably, survive and aid

economic transformation. This is only possible through government’s intervention

2.4 Conceptual Framework

Figure 2.2 shows a conceptual framework for enhanced micro-scale cassava enterprises

in Southwest Nigeria. The federal government, is expected to create an enabling

environment for the MSCPEs, through its policies. These policies are executed through

the government institutions (ministry of finance, works, water resources, among other,

15
 and other institution including the research institutions). The government through these

institution, is expected to make policies that will enhance the availability of funds,

infrastructural facilities, and research and development market linkages, inputs for

processing, among others. These actions will stimulate the MSCPEs to perform better,

and lead to increase in their efficiency, sales, gross margin, market, etcetera.

Government

Research Institutions Finance Sector

 Increase in Research Power, Works, Water Resources and  Increase in Loans
and Development Other Infrastructural Institutions
 Increase in Grants
 Advancement in  Adequate Provision of Electricity Through:
Innovation  Adequate Provision of Water  Industrial Banks
 Improved Market  Adequate Provision of Motor able  Agric. Banks
Linkages Roads  Commercial
 Commercialization  Provision of Factories Banks
of Cassava Products  Provision Stalls  Micro Finance
 Fabrication of  Provision Equipment Banks
Equipment
 Improved skills

 Financing
 Research and development
 Production facilities
 Product Innovation
 Infrastructural facilities
 Skill Development
 Inputs for processing
 Market Linkages
 Market innovation
 Capacity Building
 Public-Private Partnership

Enhanced Cassava Processing Enterprises

 Increased Cassava Tubers’ Availability
 Reduced distance traveled to purchase cassava Tubers
 Reduced Cost of 16
Production
 Increased Efficiency
 Increased Sales
 Increased Profit Margin
 Increased Competitiveness
 Figure 2.1: A Conceptual Framework for Enhanced Micro-scale Cassava
Processing Enterprises’ Performance in Southwest, Nigeria

Source: Author, adapted from Ragasa (2010) and Dada (2014)

2.5 Gap in the Literature

Although this field of research is not new, most of the researches that have been carried

out on related studies (Awoyinka, 2009; Ogunleye and Oladeji, 2012; Onwudiwe et al.,

2015; Ohimain, 2015; Donkor et al., 2016; Ogunleye, 2016), among others) are on the

effect of the 2003 Federal Government of Nigeria’s Cassava Transformation Initiative on

the performance of cassava farmers’ productivity (production output) and efficiency, not on

cassava processors’ productivity.

This study addressed these shortcomings, by assessing the effect of cassava tubers’

availability to the Micro-Scale cassava processing enterprises in Southwest Nigeria;

identifying the factors influencing efficient processing of cassava by Micro-Scale

cassava processing enterprises in the study area; determining the effect of the FGCTI on

the efficiency and gross margin of the Micro-Scale cassava processing enterprises in the

study area; and assessing the influence of the FGCTI on the marketing of cassava

products, produced by the Micro-Scale cassava processing enterprises in the study area.

17
 CHAPTER THREE

RESEARCH METHOD

3.1 The Study Area

The study area of this research is Southwest Nigeria, as shown in plate 3.1. This region is

made up of six States (Ekiti, Lagos, Ogun, Ondo, Osun, and Oyo). The region lies

between longitude 2°311 and 6°001 East and Latitude 6°211 and 8° 371 North (Agboola,

1979). It has a total land area of 77,818 km2 and the total population was 27,581,992 as

at 2006 (NPC, 2006). The area is bounded with Edo and Delta States in the East, in the

North by Kogi and Kwara States, in the south by the Gulf of Guinea, and in the West by

the Republic of Benin. The study area comprises 85 constituted forest reserves, and the

forest area covers 842,499 hectares. The area has a tropical climate and it is characterized

by wet and dry seasons. The annual rainfall ranges between 150 and 3000 mm, while the

temperature ranges between 21 and 34°C. The dry season is associated with the Northeast

trade wind from the Sahara Desert, while the wet season is associated with the Southwest

monsoon wind from the Atlantic Ocean. Southwest Nigeria’s vegetation is made up of

fresh water swamp and mangrove forest at the belt. The low land in the forest stretches

18
inland to Ogun and part of Ondo State, while secondary forest stretches towards the

direction of the Northern boundary where the derived southern Savannah exists

(Agboola, 1979).

“The southwestern part of Nigeria is the abode of the Yoruba people” (Ogundele,

2007). Their main means of livelihood is farming (National Population Census (NPC),

2006). A lot of research institutions are situated in this region. Examples of these research

institutions include: The International Institute of Tropical Agriculture (IITA), Ibadan,

Federal Institute of Industrial Research, Oshodi (FIIRO), Lagos, Cocoa Research

Institute of Nigeria (CRIN), Ibadan, National Horticultural Research Institute (NHR,

Ibadan, Nigerian Institute for Oceanography and Marine Research, Lagos, Nigerian

Institute of Social and Economic Research (NISER), Ibadan, other research centers

situated within the universities in this zone, among others. Also, the South West zone

owns about 60 percent of the nation’s industrial capacity, 44 percent of banking assets,

68 percent of insurance assets and it has the nation’s three deep sea ports of Apapa, Tin

can Island and Roro (Ehinmowo & Fatuase, 2016). 

NPC (2006), stated that, the climate in the Southwest zone favours the cultivation

of crops like maize, yam, cassava, millet, rice, plantain, cocoa, kola nut, coffee, palm

produce, cashew among others. Also, cassava is produced mainly (99%) by small farmers

with 1-5 hectares of land intercropped with yams, maize, or legumes in the rainforest and

savannah agro-ecologies of Southern, Central, and lately Northern Nigeria. Since cassava is

extremely tolerant to environmental stress (Onwundiwe et al., 2015), including drought,

and poor soils, and can grow on soil, where a lot of other crops cannot grow well, almost all

farmers in the main cassava belts of the southeastern, southwestern and central zones

19
grow cassava, which is typically intercropped as a main or minor crop. It means that,

since 70% of the population (27,581,992) in Southwest Nigeria, lives in the rural areas, and

their main occupation is farming, one can conclude that, majority of the population, plant

cassava. The Southwest Coordinator of Nigeria Cassava Growers Association (NCGA),

stated that there are over 300,000 members of the association in the South West Zone

(Ogunsade, 2017). However, no figure has been released from any source, for the

number of cassava processors, on the list of the Cassava Processors’ Association, in

Southwest Nigeria.

Again, majority of the cassava farmers and processors in Nigeria, are non-

members of their associations. Only the big farmers and processors usually register with

the associations. Cassava can be produced at the farm level by farmers, processed into chips,

flour and pellets by processors, and used by agro industries to produce other products like

ethanol, dextrin/adhesive, native and modified starch for other industries (e.g. textile, paper,

and wood) (IITA, 2005a; Knipscheer et al., 2007). Cassava can also be used to produce gari,

fufu, cassava chips, farina, tapioca, macaroni, cassava bread and pudding.

The Nigerian cassava system, is characterized by micro-scale farmers/holdings

cultivating less than two hectares of cassava (average of 0.5 ha). Cassava farming and

processing is subsistent in nature (Nigeria Country Service Framework in Cooperation

with the Presidential Initiative on Cassava Nigeria, 2006). Cassava processing in the

study area, is carried out under the sheds, at the back or in front of houses in the rural

areas, using rudimentary implements such as, cutlasses and knives for peeling. These

20
 implements are ineffective and inefficient. The processors have to process under hash

environmental circumstances, including travelling through bad roads to purchase the

cassava roots and market their products, buying diesel to power their machines, among

others (Nigeria Country Service Framework in Cooperation with the Presidential

Initiative on Cassava Nigeria, 2006). All these add to their cost of production. Women

play a central role in cassava production, processing and marketing, contributing about

58 percent of the total agricultural labour in the southwest, 67 percent in the southeast

and 58 percent in the central zones. They are almost entirely responsible for processing

cassava which provides them with additional income-earning opportunity and enhances

their ability to contribute to household food security (Onwudiwe, Onwudiwe, Olajide,

Eze & Iyiegbuniwe, 2014).

3.2 Research Design

Survey method was used in this study. This method enables representative sample to be selected

from the population through sampling technique, and data were collected from the respondents

through the use of research instruments.

3.3 Population of the Study and Sample Size

The population of the study comprised 1,749 respondents made up of 1,083 beneficiaries, 634

members of staff of Agricultural Development Projects (ADPs) in the six States, and 32

community leaders that are within the communities where the micro-scale cassava processing

enterprises that participated in the Initiative, are located. While the sample size is 334

respondents, made up of 292 beneficiaries of the initiative, 12 community leaders and 30

key ADPs Officers.

21
3.4 Sampling Techniques

Multi-stage sampling procedure was used to draw sample for the study. Firstly,

purposive sampling method was used to select Southwest zone in Nigeria. This zone is

one of the three major agricultural zones, and cassava growing belt (others are, Southeast

and central zones) in Nigeria (FAO, 2005; Dada, 2014). The Southwest zone comprise:

Ekiti, Lagos, Ogun, Ondo, Osun, and Oyo States. This zone was selected because, a lot of

the research institutions that were used to execute and develop the various aspects of the

cassava transformation programme reside in this zone, as seen under the area of study.

Secondly, purposive sampling technique was used to gather the number of micro-scale

cassava processors that participated in the initiative, on the list of the Agricultural

Development Projects (ADPs) (Nigerian Government Agricultural Institution that was

part of the implementing institution, which coordinated the programme), in the six States.

22
Plate 3.1: Map of Nigeria, showing Southwestern Nigeria

23
Plate 3.2: Map showing the six States in Southwestern Nigeria

24
 The population of the study was 1749 respondents. This comprised 1,083 (Oyo =

315, Osun = 226, Lagos = 93, Ekiti = 104, Ondo = 226, Ogun = 119) micro-scale cassava

processing enterprises that participated in the Federal Government Cassava

Transformation Initiative (FGCTI) as reported on the records of the ADPs in the six

Southwest States. Six hundred and thirty four members of the Agricultural Development

Projects (ADPs)’s staff in the six States and 32 community leaders that are within the

communities where the Micro-Scale cassava processing enterprises are located.

Out of the 1,083 micro-scale cassava processing enterprises, 292 were selected,

using Yaro Yamane (1967)’s formula (n = N/1+N(e 2). Where: n = Sample Size, N =

Population of the Study, and e = error margin @ 5% (0.05). Thirdly, since the

beneficiaries in each State were not equal, the beneficiaries were selected from each state

using proportionate stratified sampling technique. That is, Oyo (315/1083*292 = 85),

Ogun (119/1083*292 = 32), Osun (226/1083*292 = 61), Ekiti (104/1083*292 = 28),

Ondo (226//1083*292 = 61) and Lagos (93/1083*292 = 25). In addition, 30 key ADPs

Officers (5 key ADPs officers (Processing Engineer, Agricultural Economist, Rural

sociologist/ Gender specialist, Food Technologist, Market Specialist) in charge of

coordinating the programme in each of the six States (5x6) and 12 community leaders (2

from each State) were purposively selected, making the total sample size to be 334.

3.5 Method of Data Collection

Structured set of questionnaire (comprised of qualitative and quantitative

questions that helped to substantiate the qualitative responses) and structured

personal interviews were used to collect data from the respondents. Three sets of

questionnaire were constructed. Set A was designed for the 292 Micro-Scale cassava enterprises.

25
Set B was for the 12 community leaders, while Set C was designed for the 30 key ADPs

officers. The three sets of questionnaire comprised two sections, A and B. Section A contained

questions about the personal bio-data of the respondents such as - their gender, occupation, age,

educational qualification, nationality, years of work experience and socio-economic

characteristics of the respondents.

Section B contained questions whose answers aided to assess the availability of

cassava tubers to micro-scale cassava processing enterprises in the study area, before and

after participating in the programme, identified the factors influencing efficient

processing of cassava by micro-scale cassava processing enterprises in the study area,

determined the differences in the efficiency of the micro-scale cassava processing

enterprises in the area of study, before and after the initiative, examined the differences in

the profitability of the micro-scale cassava processing enterprises in the study area, before

and after the initiative, and assessed the influence of the initiative on the local and

international marketing of cassava composite products, produced by micro-scale cassava

processing enterprises in the study area. The set of questionnaire were structured to

capture the variables before and after the initiative.

Copies of questionnaire were administered to 334 respondents (292 micro-scale

cassava enterprises, 12 community leaders and 30 key ADPs officers). The copies of

questionnaire were administered to the respondents with the aid of trained research

assistants/extension agents and youth leaders who lived within the selected communities. The

copies of questionnaire were retrieved after they were filled. Only 251 copies of questionnaire

(86%) were retrieved from the micro-scale enterprises, while 12 (100%) and 30 (100%)

questionnaires were retrieved from the community leaders and the key ADPs officers

26
 respectively, totaling 293 respondents.

Also, structured personal interview was held with the selected 12 community

leaders and 30 key ADPs officers. The time spent on the interview with each respondent

was subject to the quality of the information attained, and the patience of the respondent.

The average time spent on each respondent ranged between 10 to 15 minutes.

3.6 Validity of the Research Instrument

In order to validate the variables in the questionnaire, a pilot test of the research

instrument was carried out by administering 10% (25) of the questionnaire to some

beneficiaries of Root Tubers Expansion Programme (RTEP) in Edo State, 40% (5) to the

community leaders, and 40% (12) key ADP officers. Edo State was chosen because, the

State has similar characteristics with the study area. RTEP is a programme implemented by

the International Fund for Agricultural Development (IFAD) and World Bank, through the

Federal Ministry of Agriculture and Water Resources (FMAWR), its Federal Department

of Agriculture and Agricultural Development Projects (ADPs). RTEP’s objectives

included: the development of root and tuber production technology to increase

productivity, multiplying improved planting material of cassava, yam and sweet potatoes,

developing processing technology and marketing activities, and collaborating with NGOs

to provide training to farmers (FMANR, 2006).

During the process of running the pilot test, the adequacy of the measuring

instrument to measure what it is expected to measure was tested and corrections were

effected in the questionnaire before it was administered to the respondents under this

study, during the fieldwork. In addition, to the administration of questionnaire, structured

personal interview was held with some community leaders and key ADPs officers within

27
 the location in Edo State, where the pilot test took place. The interview was held, two and

half weeks to the distribution questionnaire to the respondents of this study. The intention

was to use the information obtained from the interview, to increase the in-depth

knowledge of the researcher on the type of questions to be included in the questionnaire

and how the questions were to be framed to the understanding of the respondents and

therefore attract sufficient information from the respondents. The time the researcher

spent with each respondent depended on the quality and depth of the information that was

acquired, and tolerance of each of the respondent. However, the average time range was

between 10 to 15 minutes.

3.7 Reliability of the Research Instrument

Cronbach Alpha was used to carry out the reliability test on the research

instrument used for the pilot test, and 70% was used as benchmark to determine whether

the instrument was reliable enough to be used to carry out social research. The result of

the test showed that the reliability of the instrument was over 70, as such, it was

concluded that the instrument was reliable enough to be used for this study.

3.8 Model Specification

3.8.1 Data Envelopment Analysis (DEA)

The DEA model adapted from Lie-Chien and Lih-An (2005), was used to estimate the

effect of the Federal Government cassava transformation initiative on the efficiency of the

micro-scale cassava processing enterprises in Southwest Nigeria, by comparing the

efficiency level of the enterprises before with their efficiency level after the initiative. The

“DEA method was first introduced by Charnes, Cooper, and Rhodes (1978) and was

called CCR model (Lie-Chien and Lih-An, 2005). This model is based on Farrell

28
 (1957)’s theory of using a non-parametric piece-wise-linear technology and combined

with mathematical programming for efficiency rating. The CCR model used constant

returns to scale (CRS) concept to assess relative productive efficiencies of Decision

Making Units (DMUs) with multiple inputs and outputs. The CCR model assumes m

inputs, s outputs and n DMUs, respectively. The DMUk is express as:

s
∑ U r Y rk
r=1
m
Max hk = ................................................................................................................
∑ V i X ik
i=1
(1)

s
∑ U r Y rj
r=1
m
∑ V i Y ij ¿1
s.t. i=1 ;j = 1, 2,...., n ...............................................................................

(2)

Ur, Vi >0; r = 1,2..., s; i = 1,2, ....., m;

Where: hk is relative efficiency of the kth DMU;

Yrj is rth outputs (sales, quantity produced per week) of the jth DMU;

Xij is ith inputs (cost of production, labour, equipment) of the jth DM

Ur is a weight of rth output;

Vi is a weight of ith input

According to equation (1), the relative efficiency scores of CCR model are the

maximum of a ratio of weighted outputs to weighted inputs (Charnes et al., 1978). Since

29
 equation (1) is a linear fractional programming problem, it has a linear programming dual

that can be transformed as follows:

s m
θ−ε ∑ s+r + ∑ s−i ]
Min hk = r=1 i=1 ......................................................................................... (3)

n
∑ λ j X ij +s−i ≤θX ij
s.t. j=1 .......................................................................................................(4)

n
∑ λ j Y rj −s+r ≥Y rj
j=1

+ −
λ j ≥0 , s r , s i ≥ε≥0 ; ∀ i, r , j

r = 1, 2, ...., s; i = 1, 2...., m; j = 1, 2, ....,n

ε is a small positive number;

λ j is a weight of jth DMU;

+
s r is a slack variable of rth output;
−
s i is a slack variable of ith input.

Some of the past studies where DEA was used by authors to analyze data are

mostly in the field of transportation and agriculture. Ada and Chee (2007) carried out a

study on “Port productivity analysis by using DEA: A case study in Malaysia”. Henning,

Strydom, Willemse and Matthews (2013) carried out a study on “Financial Measurements

to rank Farms in the Northern Cape, South Africa, using Data Envelopment Analysis.

Susila and Ooi (2013) carried out a study on the “Efficiency of Latin American Container

Seaports using DEA. Lie-Chien and Lih-An (2005) carried out a study on “Application of

DEA and SFA on the Measurement of Operating Efficiencies for 27 International

Container Ports”. Tongzon (2001) carried out a study on “Efficiency Measurement of

30
 Selected Australian and other International Ports using Data Envelopment Analysis”.

Carlos and Shunsuke (2008) in their paper “Productivity Drivers in Japanese Seaports”

estimated the technical efficiency of seaports using several models of Data Envelopment

Analysis (DEA) in order to establish which of them is most efficient.

The variable inputs and outputs that were utilized in calculating the efficiency

level of the MSCPEs include:

Variable inputs Unit of Measurement

i) Number of equipment per unit

ii) Number of labour, per unit

iii) Cost of production Naira

Variable outputs Unit of Measurement

Sales per week Naira

Quantity produced per week Kilogramme

A bag of onion, which weighs 100 kg, was used as a measure, by the trained

research assistances and extension officers, to describe the quantity of cassava purchased

or sold by the MSCPEs, while the distance traveled was measured by comparing the

distance traveled by the MSCPEs to purchase cassava tubers, by the distance between

two well-known villages in the locality.

3.8.2 Gross Margin Analysis (GMA)

Gross Margin Analysis formula was adapted from Owombo, Adiyeloja, Koledoye,

Ijigbade and Adeagbo (2012), and used to determine the effect of the Federal Government

of Nigeria’s cassava transformation initiative on the profitability of the micro-scale

31
 cassava processing enterprises in south-west Nigeria, by comparing the performance level

of the enterprises before with their performance level after the initiative. Gross margin

analysis was represented by:

G.M = G.I – TVC ……………………………………………………………………….(1)

Where:

G.M = Gross margin

G.I = Gross sales or income (Gross sales was used in this study)

TVC = Total Variable Cost.

Profit (π) = Total Revenue (TR) – Total Cost (TC)………………………………………

(2)

Benefit Cost Ratio = TR/TC ………. …………………………………………………...

(3)

Profitability Ratio = Profit/TC …………………………………………………………..

(4)

Rate of Return = GM/TVC ……………………………………………………………...

(5)

Some of the past studies where Gross-Margin was used by authors to analyze

data, include, Ogunlowo (1997). In his study “Machinery Selection Based on Gross-

Margin Costing Analysis: A Case Study of Abeokuta Local Government Areas in

Nigeria” used a Gross-Margin Cost Analysis in the profit evaluation of specific

machinery – work combination. Olorunsanya and Akinyemi (2004) in their study “Gross

Margin Analysis of Maize-Based Cropping Systems in Oyo State, Nigeria”, used gross

margin analysis to assess the profitability of maize-based cropping systems in the study

32
 area. Owombo et al. (2012), in their study “Gross Margin Analysis of Amaranth

Vegetable Production in Ondo State, Nigeria: A Gender Perspective” used gross margin

analysis to determine the returns to vegetable production in the study area (which is the

difference between total revenue and total variable cost), return on investment

(profit/total cost) and profit (total revenue minus total cost). Omojola (2014) in his study

“Gross margin analysis and constraints to yam production in Osun State, Nigeria

analysed his data with gross margin analysis. Talat and Ibrahim (2009) in their study

“Gross Margin and Cost Benefit Analysis of Rain-Water Harvesting Techniques, used in

Olive Groves in South of Hebron Governorate”, carried out an economic analysis on

extracted olive oil, using gross margin and cost benefit analysis of olive oil for the

different sites.

3.8.3 Analysis of Variance (ANOVA)

ANOVA was used to test for the significant difference between the mean values of the

cassava tubers’ availability, efficiency, profitability, local and international marketing of

cassava products, by the micro-scale cassava processing enterprises, before and after the

FGCTI in Southwest Nigeria. Oyesiku and Omitogun (1999) stated that, ANOVA is

employed to test for the equality of three or more population means. They further affirmed

that, the technique uses F-statistic to estimate two variances and compare these variances

in order to establish if the difference between them is statistically significant or whether it

is due to chance. The letter F represents the name, Fisher who invented the tool.

Data obtained was subjected to Analysis of Variance (ANOVA) in a Completely

Randomized Design using SPSS. In all, a 5% confidence level was set to test statistical

33
 significance. Components of variance, mean values, and standard errors were estimated

using the following experimental model:

Yij = µ + Ti +∑ij

Where:

Y = Dependent variable (e.g. availability of cassava tubers, average distance

travelled to purchase cassava in km., profit margin, local and international

market outlets, etc.)

µ = Population mean

Ti = independent variable

∑ij = Residual error

3.9 Method of Data analysis

The data gathered were edited, coded and the variables were given sequential

numbers for easy identification using computer programmes. Since the study is interested

in evaluating the effect of the Federal Government of Nigeria’s cassava transformation

initiative on micro-scale cassava processing enterprises in Southwest Nigeria, both

descriptive and inferential statistics were used in analyzing the data. The descriptive

statistic: frequencies, mean score, mean ranking, percentages, charts and standard

deviation were used to describe the observations. While inferential statistic: Data

Envelopment Analysis (DEA) and Gross Margin Analysis (GMA) were used to analyze

data. The hypotheses were tested using ANOVA. Data were rated with Likert scale.

DEA was used to analyze the efficiency of the enterprises before and after their

participation in the initiative, by using inputs (number of equipment, number of labour

34
and cost of production, and outputs (sales and quantity produced). The result was rated on

a 100% efficiency level, where 1 was used to represent 100% efficiency level. While

gross margin analysis was used to analyze the profitability of the micro-scale cassava

enterprises before and after their participation in the initiative. Descriptive statistic was

used to describe the factors influencing efficient processing of cassava by the micro-scale

cassava processing enterprises, availability of cassava tubers, and marketing of cassava

products, before and after the initiative. The Statistical Package for Social Sciences (SPSS)

version 21.0 was the software used in analyzing the data collected.

35
 CHAPTER FOUR

RESULTS AND DISCUSSION

4.1 Socio-Economic Characteristics of the Beneficiaries of the FGCTI

Table 4.1 shows that 96% of the respondents were Nigerians, whereas 4% were none

Nigerians. Also, 25.9% of the respondents were male, while 74.1% were female. This

means that, the female respondents outnumbered the male respondents in the trade. This

result is similar to that of Odunaya (2012), who disclosed that, cassava processing in

Ewekoro, Ogun State, Nigeria, is mostly women’s job. Also, Ajayi (1995), who

confirmed that crop processing in Kwara State is mostly dominated by female. Also in

agreement with this study is that of Odediran and Ojebiyi (2017) whose findings revealed

that majority 76.50% of the cassava processors in Southwest Nigeria were women.

Moreover, the finding is in accord with that of Okpeke and Onyeagocha (2015) whose

findings revealed that 95% of garri processors in Isoko North Local Government Area of

Delta State were females. Also related to this finding is that of Onwudiwe et al. (2015)

whose study revealed that, processing of cassava is one of the off-farm activities

performed by the rural women in Delta Central Senatorial District of Nigeria, and

Abdulsalam-Saghir, Sanni, Siwoku, Adebayo, Martin and Westby (2012), whose study

also found out that, women comprise the bulk of cassava Processors in Southwest,

36
Nigeria.

The study also disclosed that, 8.8% of the respondents were from Ekiti State,

9.6% from Lagos State, 10.4% from Ogun State, 23.9% from Ondo State, 19.5% from

Osun State, and 27.9% were from Oyo State. This means that beneficiaries in the six

States were well represented. In addition, 1.6 % of the beneficiaries, were between 20 and

29 years, 8.0% were between, 30 and 39 years, 42.6% were between 40 and 49 years,

29.1% were between 50 and 59 years, while 18.7% were 60 years and above. This

implies that a lot of the beneficiaries were between 40 and 49 years. They are adults, who

are within productive age. This finding is not far from that of Muhammad-Lawal et al.

(2013), whose study revealed that a lot of cassava processors in Kwara State, Nigeria,

were within the age range of 40-59 years. Also similar to this finding is that of Odediran

and Ojebiyi (2017) who discovered that more than 70 percent of cassava processors in

Southwest Nigeria, were between 41 to 60 years.

Furthermore, 21.1% had 1-10 years of experience, 59.0% had 11-20 years of

experience, 34% had 21-30 years, 3.2% had 31-40 years and 1.6% had above 40 years of

experience. This disclosed that the beneficiaries had enough experience to give valuable

information on the trade. This result is not far from that obtained by Okpeke and

Onyeagocha (2015), who discovered that, a lot of cassava processors in Isoko North

Local Government Area of Delta State had 11 to 15 years’ experience. Also, Ijigbade et

al. (2014)’s study revealed that, 64% of cassava processors in Kwara State, had been

producing garri for between 11 and 20 years. In addition, 31.9% of the beneficiaries had

Primary School Certificate, 17.9% had Secondary/O’ Level, 8% had

Vocational/Technical education, 7.2% had Polytechnic/University education, while 35%

37
 were not educated. This result revealed that, a large number of the respondents either had

Primary School Certificate or were not educated. This finding is similar to that of

Oluwasola (2010), who disclosed that 80% of cassava processors in Oyo State, did not

obtain more than primary school level certificate. However, it is different from that of

Muhammad-Lawal et al. (2013), who found out that 33% of garri processors in Isoko

North Local Government Area of Delta State had secondary school leaving certificates.

Table 4.1: Distribution of Socio-Economic Characteristics of the Beneficiaries of the

FGCTI

Personal Characteristics Frequency Percentage (%)

Nationality  
Nigeria 241 96.0
Others 10 4.0
Gender
Male 65 25.9
Female 186 74.1
Location
Ekiti 22 8.8
Lagos 24 9.6
Ogun 26 10.4
Ondo 60 23.9
Osun 49 19.5
Oyo 70 27.9
Age Range (years)
20-29 4 1.6
30-39 20 8.0
40-49 107 42.6
50-59 73 29.1
60 years and above 47 18.7
Working Experience (years)  
1-10 53 21.1
11-20 148 59.0
21-30 38 34.0
31-40 8 3.2
Above 40 4 1.6
Level of Education  
Primary School Cert 80 31.9
Secondary/O’ Level 45 17.9
Vocational/Technical 20 8.0
38
Polytechnic/University 18 7.2
Not Educated 88 35.0
Source: Field Work, 2015

4.12 Technical Efficiency of the MSCPEs in all the Southwest States in Nigeria, before

and after the FGCTI, using Constant Returns to Scale Technical Efficiency (crste),

Variable Returns to Scale Technical Efficiency (vrste) and scale efficiencies

Table 4.18 shows the technical efficiency of the micro-scale cassava processing

enterprises in all the Southwest States in Nigeria, before and after the FGCTI. The table

reveals that, before the initiative, none of the MSCPEs was 100% (1.000) technically

efficient. The MSCPEs in Oyo State had approximately a mean efficiency level of 0.70,

0.88, and 0.79 crste, vrste and scale efficiency respectively. While those in Ondo State

were, 0.35, 0.60 and 0.58, Osun, 0.59, 0.70, 0.85, Ekiti State, 0.29, 0.56, 0.51, Ogun

State, 0.49, 0.68, 0.72, and Lagos State, 0.51, 0.71, 0.71, respectively. This implies that,

majority of the States, recorded below 70% efficiency, before the PCTI.

In addition, the MSCPEs were all operating at an Increasing Returns to Scale

(irs). Meaning that, the more the number or quantity of input the more the number or

quantity of output they produced. On the average, all the States were moderately

efficient. The mean efficiency level for the MSCPEs in all the States before the initiative,

were, 0.49, 0.69 and 0.69, in terms of crste, vrste and scale efficiency respectively. This

means that, before the initiative, there was a scope of increasing processed cassava

products between 31% and 51% in the short run, by adopting more efficient technologies

and techniques used by the best cassava processing enterprise in Southwest States of

Nigeria. This result is different from that of Ajibefun (2002) who carried out a study on

39
analysis of policy issues in technical efficiency of small scale farmers using the stochastic

frontier production function: With application to Nigerian Farmers. This study, which

was carried out before the FGCTI, revealed that, there was a wide difference in the

estimated technical efficiencies, varying between 0.18 and 0.91, with a mean value of

0.63. This implies that, there was a wide room for improvement in the technical

efficiency of the farmers.

However, after the initiative, the MSCPEs in Oyo State, recorded a mean

efficiency of approximately, 0.89, 0.90, and 0.99% efficiency, under crste, vrste and scale

efficiency respectively. While those in Ondo State recorded, 0.76, 0.87 and 0.87, Osun,

0.80, 0.89, 0.89, Ekiti State, 0.57, 0.81, 0.70, Ogun State, 0.81, 0.90, 0.90, and Lagos

State, 0.79, 0.82, 0.96, respectively. This means that, all the States, except Ekiti, recorded

above 70% efficiency, under, Crste, Vrste and scale efficiency after the FGCTI. Again,

the MSCPEs were all operating at an irs. Meaning that, the more the number or quantity

of inputs they used, the more the number or quantity of output they produced. The mean

efficiency level for the MSCPEs in all the States, after the initiative were, 0.77, 0.87 and

0.89, in terms of crste, vrste and scale efficiency respectively. This implies that, although

none of the States attained optimum (100%) level of efficiency, the MSCPEs in all the

States were more efficient after the FGCTI.

The result shows that, after the initiative, the farmers’ efficiency improved.

Although the farmers still had room to increase their efficiency by 11% and 23%, via

better use of available resources to them, and given the current state of technology. This

result is in agreement with that of Awoyinka (2009), who carried out a study on the effect

of presidential initiatives on cassava production efficiency in Oyo State – Nigeria. The

40
study employed the stochastic frontier function model. The findings revealed that the

pilot phase of Presidential Initiative on Cassava (PIC) was successful. Farmers under PIC

were young, educated, and they belonged to food crop organization. They also had

linkage with extension services on cassava production and that there was a significant

difference between the harvested output of cassava of PIC farmers and non-PIC farmers.

Also, the harvested output of cassava roots per unit of land of the PIC farmers more than

doubled that of non-PIC farmers and PIC famers were more efficient technically than

non-PIC farmers. Consequently, the PIC programme positively improved cassava

productivity and technical efficiency.

The result is also similar to that of Durojaiye and Ogunjinmi (2015), who carried

out a study on the technical efficiency analysis of mechanized cassava farmers in Afijio

Local Government Area of Oyo State, Nigeria. In the study, data was analysed using

descriptive statistics and Stochastic Frontier production function. The study disclosed

that, the technical efficiency of the farmers ranged from 58 – 92% with a mean of 78%.

Also similar to this study is that of Amos (2007). This study was on productivity and

technical efficiency involved in cocoa production in Nigeria. The stochastic frontier

production function analysis was employed in the study.

The study revealed that, that farmers experienced increasing returns to scale in the

use of their resources. The efficiency level of the farmers ranged between 0.11 and 0.91

with a mean of 0.72 and a lot of the farmers had efficiency of between 51% and 80%.

Again, Ogundari and Ojo (2007) assessed the technical, economic and allocative

efficiency of Small Farms in Osun State of Nigeria. The study revealed that, the cost

(economic efficiency) efficiency estimated among the farmers varied between 0.325 and

41
0.952 with a mean value of 0.807. In addition, Adeyemo et al. (2010) examined the

economic efficiency of small scale cassava farmers in Ogun State, Nigeria, and their

results showed that, the efficiency of the cassava growers ranged between 88.69 and 100

with a mean of 89.4. They concluded that, there is sufficient room for the farmers to

increase their efficiency with their current resource base and available technology. Also,

Ila et al. (2012)’s analysis of technical efficiency of smallholder cocoa farmers in Cross

River State, Nigeria, employed the stochastic frontier production function analysis in

their study. The result of the analysis revealed that, the farmers experienced decreasing

returns to scale in the use of their farm resources, and their efficiency level was between

0.20 and 0.93 with a mean of 0.69. Majority of the farmers (79%) had efficiency of

between 61% and 90% while a small number of them (21%) had efficiency of less than

60% in their production process.

Ochi et al. (2015) carried out a study on the economic analysis of resource use

efficiency among small scale cassava farmers in Nasarawa State, Nigeria: implications

for agricultural transformation agenda. They used stochastic frontier production function

to analyze the efficiency of inputs used by the farmers, in their production of cassava.

Their findings revealed that, farmers were inefficient in the use of resources. The

technical efficiency of the farmers ranged from 0.342 to 0.971 with mean value of 0.873,

meaning that the farmers still had room to raise their efficiency in the use of inputs to fill

the gap of 0.107, and attain 100% efficiency. This finding is in accord with that of

Ajibefun (2002), whose study was carried out before the FGCTI. The study, revealed that

the farmers have been operating within similar efficiency range with these studies, before

the FGCTI, using rudimentary implements. This signifies that, the farmers may not

42
largely have access to the improved technology provided by the initiative, otherwise, they

may have attained 100% efficiency after the initiative.

However, the result is different from that of Akpan et al. (2013) who carried out a

study using estimated translog stochastic profit function and economic efficiency model

for cassava based farmers in Southern Wetland region of Cross River State, Nigeria. The

study revealed that, the cassava farmers had an average economic efficiency of about

0.58. This means that the farmers do not make efficient use of their resources. This result

contradicts the result of the other studies that were carried out above, after the initiative.

Nonetheless, for the MSCPEs to become 100 efficient, they will need more

improved method of processing cassava, including: peeling washing, drying, and frying.

According to Ijigbade et al. (2014), bulk of the respondents (98.6%) under their study

used manual peeling method (knives and short cutlasses) while only 1.4% used

mechanical peeling device. Also, IITA (2005b) affirmed that, productivity in agriculture

is static, because of the inaccessibility of inputs and technologies and weak market

linkages. Consequently, very little value is added to processing and there is high post-

harvest losses. In agreement with IITA (2005b), Likita (2005) concluded that, low yields

in arable crop production result from the use of inefficient production techniques, which

is occasioned by labour-intensive agricultural technology, technical and allocative

inefficiencies, and over-dependence on household resources. However, this has nothing

to do with regional location because Ila et al. (2012) who analysed the technical

efficiency of smallholder cocoa farmers in Cross River State, Nigeria, has similar results

with others who carried out similar studies in other region in Nigeria. The Cronbach

Alpha coefficient for the questions used to determine the effect of the initiative on the

efficiency of the Micro-Scale cassava processing enterprises in the study area, was 0.774.

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That means, the reliability of the research instrument used is higher than 0.7, which

implies that, the result is high and it is appropriate for social science.

Excerpt from the responses of the interviews held with the 12 community leaders

and thirty ADPs key Officers, on issues relating to the effect of the FGCTI on the

efficiency of the Micro-Scale cassava processing enterprises, revealed that, community

leaders and the key ADPs officers agreed that the initiative assisted in increasing the

efficiency of the processors, because, before the initiative, they were using the traditional,

and old implements for processing. During the initiative, the processors had access to

improved equipment, like, more efficient pressing machines, dryers, fryers, among

others. These equipment were made locally because, money was provided for the

research institutions to train machine fabricators during the initiative. Some of the

equipment were provided for the different groups, and were being used by all the

processors within the group. They further acknowledged the fact that, some processors

were able to increase the number of people working for them, the number of equipment

they had, production output and sales. They however affirmed that, the cost of production

did not come down. These responses are not far from the results, obtained from the

analysed questionnaire.

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