ASSESSMENT OF THE PROFITABILITY OF FISHING ACTIVITIES BY FISH MONGERS IN EZU, OMABALA AND OTUOCHA RIVERS IN ANAMBRA STATE
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CHAPTER ONE
INTRODUCTION
Background of the Study
Nigeria’s Agricultural Promotion Policy (APP), implemented from 2016 to 2020, was a comprehensive strategy aimed at addressing multiple challenges within the agricultural sector. This policy sought to achieve critical national goals, including food security, job creation, import substitution, and economic diversification. The APP was designed to position agriculture as a central pillar of Nigeria’s economy by integrating agricultural value chains into global supply networks, thereby enhancing the country’s competitive edge in the international market. The policy also aimed to increase agricultural productivity, which would, in turn, lead to a rise in foreign currency earnings from agricultural exports. Additionally, the APP targeted the doubling of household incomes and the acceleration of growth rates within the agricultural sector, thereby contributing to the overall economic development of the nation.
A significant component of the APP was its focus on expanding the range of agricultural exports beyond the traditional products. Initially limited to a few commodities, the policy envisioned a broadening of Nigeria’s agricultural export portfolio to include high-demand items such as fish, cashew nuts, bananas, avocados, and mangoes. This diversification was seen as essential for ensuring sustained growth in the agricultural sector and for reducing the country’s dependence on oil revenues. Among these commodities, fish stands out due to its rising demand within the country, driven by a growing population and changing dietary habits that increasingly favor healthier food options. Fish, known for its high nutritional value, is a critical component of a balanced diet. Its white flesh is cholesterol-free and low in fat, making it an ideal food choice for health-conscious consumers.
Nigeria’s vast water resources, including rivers, springs, dams, lakes, and oceans, provide a significant potential for the development of aquaculture. Aquaculture, which is the practice of breeding, raising, and harvesting fish in controlled environments, is recognized as the most sustainable method for meeting the growing demand for fish. Given Nigeria’s geographical advantages, with a total land area of 923,768 km² and a coastline extending 853 km, the country is well-positioned to become a leader in aquaculture. Furthermore, Nigeria boasts an extensive network of inland waterways, including rivers, floodplains, natural and artificial lakes, and reservoirs, which further enhance its aquaculture potential (Shimang, 2020). The development of the aquaculture sector is crucial not only for satisfying domestic fish demand but also for contributing to the broader objectives of the APP. Fish farming, therefore, plays a vital role in several key areas, including improving the nutritional health of the population, providing raw materials for the industrial sector, fostering rural development, expanding opportunities for international trade, enhancing natural resource management, and preserving biological diversity (Dagtekin et al., 2017; FAO, 2016).
Despite these significant advantages, Nigeria faces substantial challenges in meeting its domestic fish demand. To bridge the gap between supply and demand, the country spends approximately 125.38 billion Naira annually on importing 1.9 million metric tonnes of fish (Federal Ministry of Agriculture and Rural Development, FMARD, 2016). This translates to an annual expenditure of 700 million dollars on fish imports alone, highlighting a significant drain on the nation’s foreign reserves. Since 1991, the gap between food demand and supply has consistently been negative, indicating a persistent shortfall in the availability of fish. In 2016, this shortfall was estimated at around 2 million metric tonnes, with the fishing subsector being only about 30% self-sufficient (FMARD, 2016). Despite the high growth potential of the fisheries subsector, it has been unable to meet the national demand for fish and other aquatic products. Furthermore, the contribution of the fisheries subsector to the Gross Domestic Product (GDP) has remained disappointingly low, at just 4%. This underperformance is partly due to the inadequate state of essential services and infrastructure at fishing, processing, and marketing sites. In many areas, these facilities are either entirely absent or in a state of disrepair, hindering the efficient operation of the sector.
Marketing activities within the fisheries subsector are predominantly concentrated in small towns and cities, although they also extend to larger urban centers. However, the sector suffers significant losses during the transportation of goods, primarily due to poor infrastructure. These losses are exacerbated by incidents of armed robbery and vehicle breakdowns, which are common due to the hazardous conditions of many roads. Additionally, the decline in ocean fish capture, decreasing aquaculture yields, and the rising cost of fish feed have collectively had a detrimental impact on the overall productivity of the sector. The fragmentation of markets and their sub-optimal size make it difficult to ensure the profitability of substantial private investments in various stages of the commodity chain. This situation is further complicated by the increasing reliance on imports to fill supply-demand gaps, which undermines the potential for enhanced income generation and threatens the nation’s food security.
Addressing these challenges requires a concerted effort to link small-scale fishery entrepreneurs to output market opportunities. By enhancing the profitability of small-scale operations, it is possible to attract private investment into the fisheries subsector, thereby driving increased income generation, creating employment opportunities, and reducing poverty. Repositioning the fisheries subsector to reduce dependency on fish imports and ensure a balance between supply and demand is crucial for improving food security and maximizing the benefits for economic agents within the subsector. Moreover, establishing stronger markets, increasing productivity, and expanding profitability could significantly reduce the current levels of fish imports, thereby conserving foreign reserves and promoting economic self-sufficiency (Ugwumba, 2016).
This study was conducted to evaluate the profitability of small-scale fishery enterprises across the production, processing, and marketing stages within the commodity value chain. The study aims to identify key challenges and opportunities within the sector and to suggest practical measures for enhancing the performance of stakeholders. By improving the efficiency and profitability of the fishery value chain, the study seeks to encourage greater investment in the sector, in line with the targets set out in Nigeria’s Agricultural Promotion Policy. Consequently, this study focuses on analyzing the profitability of fishing activities by fishmongers in the Ezu, Omabala, and Otuocha rivers in Anambra State, providing a detailed examination of the factors influencing their success and identifying strategies for future growth.
Statement of the Problem
Fishermen, particularly those engaged in small-scale operations, often lack the financial management skills necessary to effectively manage their resources, which in turn prevents them from optimizing their income and, ultimately, their profits. This situation implies that the growth and sustainability of the fishing sector may largely hinge on the socioeconomic characteristics of the fishermen, including their level of capitalization, educational background, years of fishing experience, gender, and involvement in cooperatives. Cooperatives, in particular, may play a critical role in enhancing the profitability of artisanal fish farming by providing fishermen with better access to resources, markets, and financial services (Pius, 2019).
Fishermen’s cooperatives are increasingly recognized as a viable strategy for maximizing long-term community benefits and addressing the risks associated with poor fisheries management, unstable livelihoods, and poverty—challenges that many small-scale fishermen around the world face on a daily basis. Despite the potential benefits of such cooperatives, existing studies have predominantly focused on the quantity of fish caught and the income generated in Anambra State. However, these studies have not specifically explored the fishing activities in the Ezu, Omabala, and Otuocha rivers in Anambra, leaving a significant gap in the research.
Moreover, few of the available studies have taken into account the impact of profitable activities on fishmongers’ earnings and the role of fishing input supplies as factors that could explain variations in profitability among fishermen. This oversight leaves a critical gap in understanding the full spectrum of factors that influence the profitability of small-scale fishing operations. Given these gaps in the literature, there is a pressing need for a comprehensive study that carefully examines these overlooked aspects of fish production and profitability in the Ezu, Omabala, and Otuocha rivers. Such a study would provide valuable insights that could inform more effective strategies for supporting and enhancing the profitability of small-scale fishing operations in these regions.
Objectives of the Study
The overarching objective of this study is to conduct an in-depth assessment of the profitability of fishing activities carried out by fishmongers in the Ezu, Omabala, and Otuocha rivers in Anambra State. The study aims to achieve the following specific objectives:
i. To conduct a detailed evaluation of the profitability of fish farming by analyzing the costs and revenues associated with various aspects of fish farming, including production, processing, and marketing.
ii. To identify and examine the specific challenges and problems associated with fish farming in these regions, with a focus on understanding the root causes of these issues.
iii. To propose practical and evidence-based solutions to address the challenges identified, with the goal of improving the overall profitability and sustainability of fish farming activities in the Ezu, Omabala, and Otuocha rivers.
Research Questions
This study seeks to answer the following research questions, which are aligned with the objectives outlined above:
i. What is the level of profitability of fish farming in the Ezu, Omabala, and Otuocha rivers when considering the costs incurred and the revenues generated from various stages of fish farming, including production, processing, and marketing?
ii. What are the key challenges and problems associated with fish farming in these rivers, and how do these challenges impact the overall profitability of the fish farming activities?
iii. What are the most effective solutions that can be implemented to address the challenges identified, and how can these solutions be used to enhance the profitability and sustainability of fish farming in these regions?
Research Hypotheses
To guide the investigation and analysis, the following hypotheses have been formulated for this study:
H0: There is no significant profit generated from the fishing activities carried out by fishmongers in the Ezu, Omabala, and Otuocha rivers.
HA: There is significant profit generated from the fishing activities carried out by fishmongers in the Ezu, Omabala, and Otuocha rivers.
Significance of the Study
This study holds substantial significance for a wide range of stakeholders, particularly entrepreneurs and practitioners in the fishing sector. By shedding light on the specific challenges that fishmongers face in carrying out their fishing activities and how these challenges impact their profitability, the study provides valuable insights that can be used to improve the efficiency and effectiveness of fishing operations.
For entrepreneurs, this study offers practical recommendations that can be implemented to overcome the challenges identified, thereby enhancing the profitability of their fishing ventures. The findings of this study can also serve as a valuable resource for policymakers and development agencies seeking to design and implement interventions aimed at supporting the fishing sector in Anambra State and beyond.
Additionally, this study will serve as an important reference for future researchers and students who are interested in exploring similar topics. By contributing to the existing body of academic knowledge on the profitability of fishing activities by fishmongers, this study provides a foundation for further research and critical analysis. It also offers a comprehensive review of the literature, which can be used as a starting point for subsequent studies in this area.
Scope of the Study
This study will focus specifically on the assessment of the profitability of fishing activities conducted by fishmongers in the Ezu, Omabala, and Otuocha rivers in Anambra State. The study will provide a detailed analysis of the costs and revenues associated with fish farming in these regions, as well as an examination of the challenges faced by fishmongers and the potential solutions to address these challenges. The respondents for this study will consist of fishmongers operating in the Ezu, Omabala, and Otuocha rivers, and the findings will be based on data collected from these individuals.
Limitations of the Study
As with any research endeavor, this study encountered several limitations that may have affected the scope and depth of the analysis. One of the primary challenges faced by the researcher was the issue of limited funding, which constrained the ability to source relevant materials, literature, and information. This limitation also impacted the data collection process, as the researcher had to rely on a moderate sample size due to financial constraints.
Additionally, the researcher faced the challenge of balancing this study with other academic responsibilities, which limited the amount of time available for research. As a result, the study may not have been able to explore certain aspects of the research questions in as much detail as desired. However, despite these limitations, the study has made significant contributions to the understanding of the profitability of fishing activities by fishmongers in the Ezu, Omabala, and Otuocha rivers.
Definition of Terms
- Profitability: The extent to which a business or activity is able to generate profit or financial gain, after accounting for all costs and expenses incurred.
- Fishing Activities: The range of activities involved in the actual or attempted searching for, catching, taking, or harvesting of fishery resources, including production, processing, and marketing.
- Fishmongers: Individuals or businesses engaged in the selling of fish, often operating in local markets or specialized shops where fish is sold to consumers.