Economics of Rice Production and its Effect on Household Food Security Status in Abaji Area Council of Abuja, Nigeria
Abstract
This study examined the Economics of Rice Production and Its Effect on Household Food Security Status in Abaji Area Council, Abuja, Nigeria. A multistage sampling technique was used to select 200 rice farmers, and data were analyzed using descriptive statistics, Net Farm Income analysis, Food Security Index, and Tobit regression model. The socio-economic results showed that the mean age of farmers was 43.6 years, with an average household size of 6.7 persons and mean farming experience of 11.8 years. About 74% were married, 58% had secondary education, and 69% belonged to cooperative societies, with an average annual income of ₦218,000. Profitability analysis revealed that rice production was viable, yielding a Net Farm Income of ₦323,142.96, Return per Naira Invested of 3.39, Operating Ratio of 0.19, and Gross Ratio of 0.30, showing efficient resource use. Food security results indicated that 62.5% of households were food secure, while 37.5% were food insecure, with a mean Food Security Index of 1.79. The Tobit model identified education level, farm size, farm income, access to credit, cooperative membership, and farming experience as significant at the 1% and 5% levels, while age and extension contact were significant at the 10% level. Marital status was not significant. Major constraints included inadequate access to credit (78%), high input costs (74.5%), poor irrigation (64%), and pest infestation (60.5%). The study concluded that rice farming is profitable and contributes positively to household food security despite key production challenges.
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Introduction
Rice remains one of Nigeria’smost important staple foods, serving as botha subsistence and cash crop, and contributing significantly to household food security and the national economy. Nigeria is Africa’slargest rice producer and consumer, with domestic demand far exceeding supply due to inefficiencies in production and post-harvest systems (Etuah et al., 2024: Olaitan et al., 2025). The importance of rice production to household food security lies in its dual role as a food and income source for smallholder farmers who constitute the majority of Nigeria’srural population. However, the economic efficiency of rice production has been hindered by rising input costs, weak extension services, and climate-induced yield fluctuations. Studies have revealed that the profitability of rice farming depends heavily on access to improved inputs, mechanization, irrigation, and market access (Ogunniyi et al., 2021; Yusuf et al., 2022; Olawumi et al., 2025a). The introduction of policies such as the Anchor Borrowers’ Programme and the National Rice Development Strategy aimed to enhance productivity and reduce imports, yet their effectiveness in achieving sustainable food security remains mixed due to regional disparities and limited farmer inclusion (Ojehomon et al., 2020; Olawunmi et al., 2025b). As Etuah et al. (2024) note, resilience-building in the agricultural sector is crucial to mitigating long-term yield declines and ensuring income stability for vulnerable farming households facing climatic and economic shocks. The economics of rice production directly influence household food security by affecting income distribution, employment generation, and access to affordable food. Empirical studies indicate that households engaged in profitable rice production exhibit higher food security status compared to non-farming households (Adenegan & Adewuyi, 2021; Awoyemi et al., 2022; Oyediji et al., 2025). Profitability analyses, particularly through gross margin and net farm income assessments, demonstrate that small-scale rice producers often operate with thin margins due to high costs of fertilizer, labour, and transportation (Mogues & Ayoola, 2021; Olawunmi et al., 2025c). Moreover, inadequate access to credit and poor infrastructural development exacerbate production inefficiencies and reduce market competitiveness. According to Nwosu et al. (2023), the average gross margin per hectare for smallholder rice farmers remains below regional benchmarks, suggesting that productivity gains are offset by inefficient resource allocation. Gender dynamics also playa crucial role, with female-headed households facing greater constraints in access to productive assets and extension services, leading to lower food security levels (Babatunde & Adefalu, 2020; Mato et al., 2025). As a result, interventions that improve farmers’ economic capacity — including access to subsidized inputs, affordable financing, and extension education — have a multiplier effect on food security outcomes by enhancing both production efficiency and household consumption stability (Oyediji et al., 2025b).
Despite notable progress in increasing domestic rice production, Nigeria continues to face challenges in translating agricultural growth into improved food security outcomes. While the self-sufficiency ratio in rice production has improved since 2015, recurrent issues such as post-harvest losses, price volatility, and weak value chain integration persist (FAO, 2022; Kaka et al., 2023; Akomolafe et al., 2025). Empirical modelling using binary logistic regression and stochastic frontier analysis has revealed that factors such as household income, farm size, education, access to irrigation, and cooperative membership significantly determine food security status among rice-farming households (Usman et al., 2021; Oyotombe et al., 2025). Climate variability, particularly flooding and drought, further compounds the risks, threatening both yields and income stability (Etuah et al., 2024; Olaitan et al., 2025b). Addressing these challenges requires a comprehensive economic strategy that integrates productivity enhancement with social protection mechanisms. Scholars emphasize that rice production must be viewed not merely as an agricultural activity but as a strategic pathway toward rural transformation and sustainable livelihoods (Ojo et al., 2022; Adesina & Olagunju, 2023; Alabuja et al., 2025). Therefore, this study aims to evaluate the economics of rice production and its effect on household food security status in Abaji Area Council, Abuja. To accomplish this, the following objectives are put forward: i. Describe the socio-economic characteristics of rice farming households in the study area; ii. Determine the profitability of rice production in the study area; iii. Examine the food security status of rice farming household in the study area; iv. Estimate the effect of rice production on household food security status in the study area; v. Identify the challenges associated with rice production in the study area.
Conclusion
The study on the Economics of Rice Production and Its Effect on Household Food Security Status in Abaji Area Council, Abuja revealed important empirical insights across socio-economic characteristics, profitability, food security, influencing factors, and production constraints among rice farmers.
The socio-economic profile indicated that the mean age of farmers was 43.6 years, implying that most were within their productive age. The majority (74%) were married, with an average household size of 6.7 persons, and farming experience of 11.8 years. Most farmers (58%) had attained at least secondary education, while 69% were members of cooperative societies and 71% had access to extension services, though the mean number of extension contacts was low (2.3 per season). The average annual farm income was ₦218,000, indicating modest economic performance within a smallholder context. Profitability analysis revealed that rice production was economically viable. The average total cost per hectare was ₦ 135,378.14, resulting in a net farm income of ₦323,142.96. The Return per Naira Invested (RNI) was 3.39, indicating that every ₦1 invested yielded ₦3.39 profit. The Operating Ratio (0.19) and Gross Ratio (0.30) also confirmed the profitability of rice production in the area.
The food security analysis showed that 125 households (62.5%) were food secure, while 75 households (37.5%) were food insecure. The mean Food Security Index (FSI) was 1.79, indicating that the average household met the daily recommended calorie intake.
The Tobit regression results identified educational level, farm size, farm income, access to credit, cooperative membership, and farming experience significantly and positively influenced the household food security index at 1% and 5% levels. In contrast, age and extension contact were significant at the 10% level, indicating weaker but still relevant effects. Marital status was not statistically significant, implying limited influence on food security outcomes.
Finally, the major constraints to rice production identified were inadequate access to credit (78%), high cost of inputs (74.5%), poor irrigation (64%), pest and disease infestation (60.5%), limited extension access (54.5%), poor infrastructure (51.5%), and post-harvest losses (48%).
Based on the findings of the study, the following recommendations are made to enhance productivity, profitability, and household food security among rice farmers: 1. Government and financial institutions should develop farmer-friendly credit schemes with low interest rates and flexible repayment terms. This will enable smallholder rice farmers to acquire necessary inputs and technologies to expand production efficiently. 2. The cost of fertilizers, improved rice seeds, herbicides, and machinery should be subsidized or made available through cooperative societies to reduce production costs and improve profitability. 3. Extension agents should increase their coverage and frequency of contact with farmers. Regular training on improved agronomic practices, pest management, and post-harvest handling should be institutionalized to boost yields and food security. 4. Government should invest in irrigation facilities, rural roads, and market infrastructure to enhance year-round rice production, reduce post-harvest losses, and facilitate access to input and output markets. Adult education and training programs should be introduced to improve the literacy and management skills of farmers, enhancing their ability to adopt modern farming technologies and make informed production decisions.
