ECONOMIC ANALYSIS OF FINANCING AND SUSTAINABILITY OF IRRIGATED AGRICULTURE IN THE LOWER ANAMBRA AND LOWER BENUE IRRIGATION PROJECTS, NIGERIA

ABSTRACT

Irrigated agriculture provides a very important part of national food security strategies as well as individuals’ and communities livelihoods at the local level.  Yet the performance of many irrigation and drainage systems in Nigeria is generally below potential due to a variety of shortcomings. The monopolistic nature of the sector and its social sensitivity has fostered extensive government  intervention  that has not  always been conducive to financial  sustainability.  Insufficient  cost recovery and  lack of direct linkages  between revenue and expenditure, and between the client and the service agency are the root of the problems resulting to lower performance.  Globally,  there is a consensus  for irrigation sector reform to increase water productivity, bothering on the institutional structure for irrigation  management  and  the  incentives  for  agencies  and  farmers.  These  reforms suppose that irrigation water is to be priced and that farmers will have to pay for the cost of  water  supply  and  related  services.  While  such  arrangements  are  important,  some questions   arise:   would  it  work  in  situations  where  the  physical  infrastructure   is dilapidated; user ability to pay is severely constrained by macro-economic factors; market concepts  and  institutions   are  absent  or  in  their  infancy;  and  capability   in  both management and regulation is limited. These concerns informed the need for this study. The  broad  objective  of this  study  was to analyze  the financing  and  sustainability  of irrigated agriculture in the Lower Anambra (LAIP) and Lower Benue (LBIP)   Irrigation Projects.  The specific   objectives  of   this study were to  (i) describe  the sources  and volume of  investment;(ii) determine levels of cost recovery achieved, (iii)  analyze the institutional   and  management   patterns   of   irrigated   farming   in  the  two  schemes; (iv)describe  gender participation  in the  schemes;  (v)Describe  gender division  of farm decision making and performance  of  activities; (vi) measure resource productivity  and enterprise profitability  in both  schemes; (vii) determine farmers willingness  to pay for irrigated agriculture ; and (viii) Identify  the socio-economic factors  that influence   their willingness  to  pay.Data  for  this  study  was  collected  mainly  through  focus  group discussion  and administration  of structured questionnaire  to farmers randomly selected from the two projects. In the LAIP, a total of 143 farmers were randomly selected for the interview,  while  in  the  LBIP  a  total  of  33  farmers  were  randomly  selected  and interviewed. In both schemes key management and technical staff were also interviewed. Information collected includes socio-economic characteristics of farmers like educational status,  income,  age,  years  of  experience;  institutional  and  management  patterns  of irrigated farming; farmers’ input costs and output price data, and amount they are willing to  pay  for  improved  water  service.  Data  collected  was  analyzed  using  frequencies, percentages, gross margin, financial self-sufficiency indicator, Cobb-Douglas Production function, and Tobit regression model.The LAIP scheme is not able to sustain itself for operation  and maintenance  as the financial  self-sufficiency  indicator  is 0.60.  In both projects, the major interests identified by the farmers include water quality, quantity and availability and also timely maintenance and repair of irrigation infrastructure. Headship of household was indicated by 81.81% of the respondents in LAIP as a factor affecting access to land in the project. Another major factor is community membership which was indicated by 79.29% respondents. Major farming decisions like leasing land, fertilizer and pesticide use, were taken by male heads of households. The Cobb -Douglass production function  analysis  showed  that  for  the  LAIP  rice  enterprise  the  variables  that  are significant are fertilizer, seed and land; with seed being negatively related to output. The overall F-Value of the regression was significant at 5% leading to a rejection of the null hypothesis that resources used in the production do not significantly influence the output. Seed, Land and fertilizer were significant in the analysis of potato production in LBIP.

Fertilizer used was negatively related to output.  In the LAIP the gross margin obtained for the rice enterprise was N 92, 802, while a value of N89, 662 was obtained as profit. In the LBIP where Potato is grown, the gross margin is 119 039, while a value of N 116, 919 was obtained as profit. The mean Willingness to Pay amount is N6192.3 and N6378.80 for LAIP and LBIP respectively.  The variables that  influenced  willingness  to being a valid or invalid response were farming as an  occupation, total income, start price and location being Omor. Those that influenced willingness to pay for valid responses were start price and location being Omor.

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

The development  history of countries worldwide shows that agriculture is   the engine of overall economic growth and   broad based poverty reduction (Van  Koppen, Namara  &Safilios-Rothschild,   2005).  Higher  farm  productivity  enhanced  producers incomes, in cash and in kind, and created demand for agricultural labour. The multiplier effects of this growth became the propelling force for overall economic advancement in the developed and emerging economies.

Africa currently lags behind all other regions in terms of farm productivity levels with depressed  crop and livestock  yields  (United  Nations  Economic  Commission  for Africa  (UNECA)  2007).  Africa  Water  Development  Report  (UN  Water/Africa  2006) estimates that in the past three decades, agricultural production in Africa increased at an average of less than 2% per annum while population has risen at about 3%. In Nigeria, World Bank reports put the growth rate in total food production at less than 1.5 % in the 1990s, compared to an average annual population growth rate of about 3% during  the same period (Kebbeh,Haefele and Fagade (2003). As Okoye (2005) observed, Nigeria’s performance in terms of agricultural production and productivity remains inadequate as farm yields and growth rates in agricultural value added  are still low, in comparison with some countries in Africa and Asia. This scenario leaves the  Nigerian government  and agricultural producers with the challenge of increasing agricultural productivity.

Agriculture led development is fundamental to cutting hunger, reducing poverty (70 percent of which is in rural areas (UNECA  2007)),  generating  economic  growth, reducing the burden of food imports and opening the way to an expansion of exports (Van Koppen  2005;  UNECA  2007).  Productivity  driven  increases  in food production  have shown to have a strong positive impact on the rural economy, leading to increased food availability  and a reduction  of food prices in local markets (UNECA 2007).  The two major strategies that have been recommended for increased agricultural productivity are the use of higher yield variety of cereals together with fertilizer and improved irrigation (Van koppen etal 2005, Upton 1996). Irrigation can increase land productivity by between three to seven times, especially in the semi-arid zone (Upton 1996).

According  to  Upton  (1996),  irrigation,  which  can  be  broadly  defined  as  the supplementation  of  precipitation  by  storage  and  or/transportation  of  water,  increases agricultural productivity, and human carrying capacity, per hectare of land. It allows the introduction  of high yielding crops and promotes higher yield of  crops  which may be grown without irrigation especially when complementary  inputs such as seed for high yielding variety and fertilizer are used. It enables all year round cropping thereby securing food supply and providing  employment  for farm  households.  Improved  water control reduces the risk of crop failure, which is critical to motivate farmers to adopt emerging production technologies (Upton 1996; Van Koppen et al 2005).

In Nigeria, the National Water Resources Master Plan prepared in 1995 concluded that food insecurity is a serious and escalating problem and water is the  most critical constraint to food production (Musa, 2004). Uncertainty in the adequacy and variability in timing of the start of rainy seasons, or the occurrence of dry spells within them, represent major sources of worry for farmers (Khroda  1996).  Consequently,  in the humid zone agriculture usually requires supplemental water for irrigation when it is not available in the crop growing season. Such supplemental water makes it possible to attain high annual yields with double, or even triple, cropping per irrigated hectare. On the other hand, in the arid and semi arid part of the country, it is too dry to have any intense cropping without irrigation.

One major factor limiting the exploration of irrigation potential is the reluctance of  governments  and  the private  sector  to invest  more  resources  to  irrigation.  OECD (2004) noted that financing irrigation is not easy; typically investments involve a high capital outlay and long pay-back periods, as well as greater risks and lower rates of return than other forms of infrastructure.  Musa  (2004) agreed with this, stating that high unit cost  coupled  with  scanty  database   and  poor  operational  environment   have  made mobilizing  required investment  in  Nigeria difficult. In Nigeria, the 2004 report of the review  of  public  irrigation  sector  shows  that  whereas  the  overall  capital  cost  of  the schemes is estimated at N170 billion, and maintenance and operational costs to sustain the  scheme  is  estimated  at  N2.0  billion  annually,  the  federal  Government’s  budget allocations to these schemes do not cover operation and maintenance costs.. It also noted that  the  overall  state  of  the  62  public  irrigation  schemes  surveyed  in  the  report  is generally  poor  with  dilapidated  hydraulic  infrastructure   and  conveyance   structures damaged  or  dilapidated  (ENPLAN  2004).  Large  scale  canal  irrigation  are  in  poor condition. They are not properly maintained, operations are inadequate, water supplies do not reach the end of systems and the timing of water supply is unreliable. The wide gap between  actual  and  desirable  performance   threatens  the   sustainability   of  irrigated agriculture.More  importantly,  the  recurrent  costs  of  operation  and  maintenance  are seldom recovered directly from farmers, resulting in stagnation in further development of irrigated fields. Such short-sighted operation and maintenance policies have reduced the economic life of irrigation facilities and led to impaired water delivery capacities. There is a need to shift emphasis towards rehabilitation and modernization of existing systems, but the cycle of construction-deterioration-rehabilitation has to be broken through greater mobilization of resources from the farmers themselves to ensure adequate operation and maintenance of the systems (Akanm,Eluwa and .Ekpo 2007).

The  monopolistic  nature  of  the  sector,  and  its  social  sensitivity,  has  fostered extensive  government  intervention  that  has  not  always  been  conducive  to  financial sustainability  (OECD,  2004).  Traditional  central  government  dominated  institutional settings  and  its  functions  with  top-down  approach  have  failed  to  sustain  irrigation services.  Insufficient  cost  recovery  and  lack  of  direct  linkages  between  revenue  and expenditure, and between the client and the service agency are the root of the problems resulting to lower performance (DFID 2001; Akanmu, Eluwa  & Ekpo 2007).

The Lower Anambra Irrigation Project in Omor (LAIP), Anambra state, and the Lower Benue Irrigation Project(LBIP)in Bokkos Plateau State were specifically chosen for this study.  According  to  LAIP  (2000),  at  optimal  production  level,  the  Project  has  the potentials to support the production of an average of 38,000 tonnes of paddy rice annually with a market worth of N 5.4 billion Naira at N 17, 500 per tone ( value in 2000). LAIP (2000) further noted that the inability to reach this production target, sustain it and other recorded  achievements  by  the  Project  has  in  recent  times,  remained  the  problem  of management  in Anambra-Imo  River Basin and Rural Development  authority both past and present. This problem is attributed to reasons such as:  frequent breakdown of the pumps  and  pump  engines;  breakdown  of  machines;  erosion  and  collapse  of  canal embarkments;  siltation  of unlined  canals;  and  inadequate  fund  to support  the  overall activities of the Project.

Currently,  the  LAIP  project  is in a transition  phase,  with  its irrigation  infrastructure having been in disuse due to deterioration, but currently, it is among the projects selected by the Federal government to re- invigorate and revamp. The farmers currently engage mainly  in rain  season  rice cropping.  Issues  of concern  for  the project  administrators include the ability to offset operations and maintenance costs after the new facilities are installed.  The  Lower  Benue  Irrigation  Project(  LBIP)  also  has  dilapidated  irrigation infrastructure but basic  irrigation is still being carried out. In the (LBIP) vegetables such as carrots and lettuce in adition to irish potatos  are grown.

Given  the  value  of  irrigated  agriculture  in  any  economy,  concern  for  its sustainability becomes paramount.Various agencies and researchers have identified broad guidelines  for  sustainable  water  resources  management.  Sustainability  is  defined  by Barker,  Dawe  &Innocencio  (2003)  as “the  ability  to continue  extracting  net  positive social returns from a resource for an indefinite period of time”. For irrigated agriculture, the principal  resource  is land and water.  Loucks  (2000) stated  that sustainable  water resources management is a concept that emphasizes the need to consider the long-term future as well as the present. Cia,  McKinney and Rosegrant (2001) proposed a   set of manageable indicators of sustainability based on broad guidelines and principles. Cia  et al (2001) further stated that in the context of arid or semi-arid basins where irrigation is the dominant  water use, sustainability in irrigation water management can be indicated by: water supply system reliability, reversibility, and vulnerability; environmental system integrity; equity in water sharing, and  economic acceptability.

Under  the  framework  of  Integrated  Water  Resource  management,  sustainable  water management  connotes  economic  efficiency,  environmental  sustainability  and  social equity  (International  Network  for  Capacity  Building  In  Integrated  Water  Resource Management (CAP-NET) & Gender and Water Alliance (GWA) 2006). Water resource systems that are managed to satisfy the changing demands placed on them, now and on into the future, without system degradation can be called “sustainable”. Cia, McKinney & Rosegrant    (2001)   stated   that   sustainable    irrigation    water   management    should simultaneously achieve two objectives: sustaining irrigated agriculture for food security and preserving the associated natural environment.

For the purposes of this research sustainability is viewed from the context of equity in water sharing and economic efficiency and acceptability. Equity in water sharing derives from a perception of water as not just an economic resource but also as a  community resource with deep emotional and symbolic value (Tsur and Dinar 1995).In this context participation  of both  men  and women  farmers  in the projects  is a critical  factor  for consideration.    Economic  acceptability  recognizes  that  besides  food  self  sufficiency, achieving net profit over the long term is the motivating  factor  that sustains irrigated agriculture.  Economically  acceptable  irrigation  systems  provide  lifestyle  and  social options for farmers and also contribute to the wider economy and community. Efficiency in the allocation of irrigation water includes: allocation of a given supply of water among farmers,  crops,  regions  and  time  periods  so  as  to  maximize  the  net  contribution  to production.    Efficiency  also  connotes  utilizing  water  resources  optimally  to  increase productivity.

.          Water pricing  reforms are among various  measures  designed  to encourage  the efficient  use of water resources  (UN-Water/Africa,  2006). According  to Perry  (1996), water service charges are potentially important and useful because a direct  connection between the cost incurred in providing irrigation services and the charges to users should induce  them  to exert  pressures  for increased  efficiency  in the  delivery  agency  or to suggest rearrangements of responsibilities in exchange for reduced fees. Secondly, Perry (2006) also noted that service charges that are linked to the quantity of service (water) provided should induce users to economize in its use by choosing water efficient crops or water saving irrigation technologies.

Water   service   charges   are   also   potentially   important   and   useful   because recovering costs from beneficiaries of the service relieves the government of a financial burden and provides revenues to support operation and maintenance  (Perry, 1996,Abu Zeid, Undated). Akanmu, Eluwa & Ekpo (2007) however noted that setting prices at the right level is not enough, but that the prices need to be paid if they are to enhance the efficient allocation of water resources. In both schemes (LAIP and LBIP), token fees are charges  to  the  farmers  before  allocation  of  land.  This  fee  is  called  “administrative charge” and does not in any way reflect the cost of the water service.

This   study   therefore   focuses   on  financing   and   sustainability   of   irrigated agriculture  in the  Lower  Anambra  Irrigation  Project  and the Lower  Benue  Irrigation Project.

1.2      PROBLEM STATEMENT

Much of the required growth in food crop production will depend on investment in the irrigation   sector   but  it  has  been  observed   that  most  sub-Saharan   Africa   (SSA) governments and international financial and development agencies are reluctant to invest more resources to this sector, not only in Nigeria but also in most  of SSA (Inocencio, Kikuchi, Tonosaki, Maruyama, Merrey, Sally &de Jong,2007). High irrigation investment costs together with the perceived failures of many past irrigation projects are believed to be the main reasons for reluctance of  international financial and development agencies and sub-Saharan African governments to invest more resources in irrigation (Inocencio et al 2007).

According  to  Musa  (undated),  Nigeria  witnessed  spectacular  expansion  of  irrigated agriculture  from  1970  to  1990s,  with  the  Federal  Government  of  Nigeria  and  its institutions as the main actors, but the situation has however been declining, especially with  respect  to  investment  for  new  construction.  Musa  (2002)  identified  financial constraints and growing realization of planning, management and operational problems associated with some of the formal irrigation development as factors limiting further rapid expansion of the large scale formal irrigation schemes in Nigeria. The Annual Report of the Federal Ministry of Water Resources, (FMWR 2000) stated that budgetary allocations are always too meager and inadequate to achieve the desired objectives. FMWR (2000) further noted that the problem is further compounded by the fact that fund releases are often untimely, and hence stalling good performance assessment of projects, especially during the dry season.

In the  Lower  Anambra  Irrigation  Project,  Omor  and  Lower  Benue  Irrigation  Project located in Bokkos, financing needs are not being met currently both for  infrastructure development and for operation and maintenance.

In order to attract the required amount and types of funds, the sector as a whole will need drastic reform aimed at realigning incentives and promoting sustainability in terms of management  and financing.  There is a global consensus  for irrigation  sector reform to increase water productivity, bothering on the institutional structure for irrigation management and the incentives for agencies and farmers (Dinar 2000; UNEP 2000; PEP 2005, Gulati, Meizen-Dick and Raju 2005). Current thinking with respect to  financing and sustainability of irrigated projects is that there is need for reform such that certain roles hitherto performed by the Government and international agencies are devolved to farmers. These reforms suppose that irrigation water is to be priced, and farmers will have to  pay  for  the  cost  of  water  supply  and  related  services,  while  taking  on  increased management responsibility (Perry 2006, Van Hofwegen 2006).  In line with this, Musa ( undated) noted that the  National policy on irrigation in the 1990’s was to gradually turn over operation, maintenance and management (OMM) responsibilities at tertiary and even secondary levels to farmers  on public large scale   irrigation schemes and to hand over fully  the  OMM  responsibilities  of  smaller  systems  to  beneficiaries.  In  addition,  the agency is required to operate, maintain and manage the remainder of the irrigation system jointly with the farmers or non-governmental  agencies in such a manner as to be self- financing from revenue collected on irrigation water charges( Musa Undated). Attempts were made to implement these reforms but the results are dissatisfactory as evidenced by the poor state of these irrigation schemes. Part of the failure to make significant progress is partly due to poor evidence base for policy decisions.

Devolving   roles to farmers and other stakeholders could raise   efficiency, equity, and financial viability. Equity, efficiency and effectiveness  all demand greater  attention to gender  issues  in water policies,  programmes  and projects  (World  Bank  1995; Orama & Ogbu 1995; Van Koppen 2002; UN-Water/Africa 2006). CAP-NET and GWA (2006) noted that a gender approach to irrigated agriculture  would contribute to  social equity through  improvement  in agricultural  productivity  and a fairer  distribution  of benefits across gender. This would in turn contribute to sustainability.

In assessing financial sustainability for Operation, maintenance and management(OMM) of an irrigation system, Musa ( Undated) stated that there are  four basic elements that need to be considered: the resource limitations; the specific costs associated with OMM activities;  the  farming  systems  (and  farmers)  using  the  irrigation  systems;  and  the infrastructure   forming   the  irrigation   systems   and   the   agency   responsible   for  its management.

While  reforms are important and will promote sustainability in terms of financing and management , the African water Development Report noted that some questions arise about these concepts:  would it work in situations  where the  physical infrastructure  is dilapidated; user ability to pay is severely constrained by macro-economic factors; market concepts and institutions are absent or in their infancy; water law and property rights are inadequately  defined; capability in both  management  and regulation is limited and the social and environmental risks of getting it wrong are considerable. Musa (2002) while deliberating  on the  implications  of privatizing irrigation sub-sector as proposed by the then administration of President Olusegun Obasanjo, stated that the questions to ask when the state finally withdraws from irrigation are: who will hold the ring, and protect  the interests of the rural poor? Would the farmer be sufficiently enabled to take on the added responsibilities  shifted  to  them?  In  other  words,  critical  questions  that  need  to  be answered  before  selecting  sustainable  management  options  for   Nigeria’s  irrigation schemes include:

•    What are the sources of investment in the Projects and are the projects financially self sufficient?

•    What is the essential set of elements (rights, responsibilities and powers) which should be included in irrigation management devolution?

•   What gender issues are relevant in the projects?

•    Do the farmers’ production systems allow them to pay and are they willing  to pay?

These questions require deep scientific analysis so that current efforts to revamp irrigated agriculture will be well guided and based on sound judgement. Moreover the widespread  failure  to fully  understand  and value  the economic  significance  of water investments is in many cases the root cause of difficulties in generating adequate levels of finance for water investments. Evidence from literature show that in terms of irrigation pricing in Africa, there is an urgent need, in the absence of working markets for water and in  the  presence  of  growing  conflicts  over  water  use,  to  understand  the  underlying economics of water demand and value in various economic sectors (Borgoyary 2002).

Past  studies  on  irrigated  agriculture  in  Nigeria  focused  mainly  on  technical efficiency  of  production  systems,  agronomic  aspects  of  crops  under  irrigation  and environmental impact of irrigated agriculture (Urama &Hodge, 2004:Kebbeh, Haefele & Fagade 2005; Akinbile 2010 ).While the issue of low water price and poor collection rate in irrigation water projects has been addressed in some studies (Akanmu, Eluwa &Ekpo 2007 and Olubode-Awosola, Idowu &Van Schalkwyk (2005), very few previous studies focused on cost recovery in irrigation, and most looked at it from the perspective of the determinants  of  farmers  ability  to  pay  for  irrigation  services  (Fakayode,    Ogunlade, Ayinde,  &.  Olabode  2010)  or  irrigation  sector  performance  in   Nigeria  (Olubode- Awosola, Idowu &Van Schalkwyk 2005).These studies focused on irrigation schemes in the  Western  part  of  Nigeria.  In  Southeastern  Nigeria,  previous  studies  in  irrigation focused on the gains in crop yield per unit of land per year due to the opportunity to grow crops twice in the year and on environmental externalities associated with irrigation (see: Urama & Hodge, 2004), ignoring the issues of farmer’s willingness   and ability to pay, financing questions and community participation in irrigation despite the fact that these impact on irrigation system  sustainability. While these studies are important they do not alone  provide  the  critical  information  required  by  policy  makers  to  guide  Nigeria’s transition to reforms in the irrigation sector. This therefore informs the need for this study which will contribute to bridge this research knowledge gaps.

1.3      RESEARCH OBJECTIVES

The overall objective of the study is to assess the financing and sustainability of irrigated  agriculture  in  the  Lower  Anambra  and  Lower  Benue  Irrigation  Projects  in Nigeria. The specific objectives are to:

i.         describe the sources and volume of investment;

ii.         determine levels of financial self suffiency  achieved ;

iii.       analyze the institutional and management patterns of irrigated farming;

iv.       describe gender participation  in the two projects;

v.        describe gender division of farm decision making and performance of activities ;

vi.       measure  resource productivity and enterprise profitability in the projects;

vii.      determine farmers willingness to pay for irrigation water;

viii.     determine the socio-economic factors influencing farmers willingness to pay for irrigation.

ix.       Make Policy recommendations based on the findings.

1. 4  RESEARCH HYPOTHESES

The research hypotheses are based on the premises that farmers’ ability and willingness to pay for irrigation water are twin prerequisites for financing sustainability, and in turn that the efficient utilization of resources in the farmland is prerequisite for farmers’ ability to pay for irrigation water, and that both farmers ability and willingness to pay for irrigation water are crucial for the overall sustainability of  irrigated farming in the projects.

Deriving from these, the following null Hypothesis will be tested:

H01:    fund generated in the irrigation scheme offsets operation and maintenance costs.

H02:      The  resources  (land,  labour,  fertilizer,  seed)  used  for  production  (of  rice  and

Potato) in both schemes do not significantly influence their output.

H03:    Gender  category  of  respondents  does  not  influence  the  performance  of  farm activities in the two schemes.

H04:    The  socio-economic  characteristics(  like  age,income,  occupation,sex,  marital status,  education)  of  farmers  do  notinfluence  their  willingness        to  pay  for irrigation water.

1.5      JUSTIFICATION OF THE STUDY

According   to   Nigerian   National   Commission   for   Irrigation   and   Drainage (NINCID2007) irrigation and drainage infrastructure is a vital and necessary leg of the Green Revolution triangle of seeds, fertilizer, and water control. As such, it has played a critical  role in the prevention  of famines and widespread  starvation  and in the rising standard  of living  of millions  of farmers  in Nigeria.  According  to Molden,  Frenken, Randolph, de Fraiture, Mati, Svendsen, Sadoff & Finlayson (2007) investments in water

for agriculture have made a positive contribution to rural livelihoods, food security, and poverty reduction. The positive impact is felt through employment gains, affordable food prices, and more stable outputs. Through a multiplier effect investments in irrigation lead to a rise in crop yields and farm incomes that result  in  higher demand for goods and services in nonfarm sector- multiplying the benefits of the original investment.

This work will provide  evidence  to support  policy  in the   irrigation  sector  in Nigeria.  Particularly,   findings  from this study will inform the links between  farmers socio-economic characteristics and their willingness to pay for irrigation water as it has not been fully explored in previous studies in Nigeria. As policy makers deliberate on reforms in the sector, information from this work will come in handy. It will be useful to policy makers, administrators,  and planners  in the policy  formulation,  implementation and planning process.

The study will also provide important research material for  academics, students and researchers in this field and other related disciplines. It will add and  contribute to existing literature in the field.

1.6      LIMITATIONS OF THE STUDY

This study focuses on the sustainability  of irrigation  in terms of financing  and management  and does not study environmental  sustainability  of irrigation.  The  major limitation in conducting this study is that of the reluctance of the irrigation management staff  to  give  information  related  to the  costs  associated  with  irrigation management. Several visits were paid to the Project administrative offices to no avail. A referral was made  to  the  Administrative  head  quarter  office  and  after  careful  explanation  of  the purposes of the survey, there was still a reluctance to divulge information.

In terms of scope the study focused on only two irrigation schemes, one in the south-east and one in the north central part of the country.Another  limitation is that of insufficient data to quantify irrigation water demand. There is need for more constructive model and data to extend research for greater policy implication.

The information  provided  by the farmers  used in this study was mainly  from memory recall as many of them do not keep records of operation. However in view of this some important questions were rephrased another way in order to verify the accuracy of the information  being supplied.  In spite  of these  limitations,  the  results  of the study represents a good approximation of the current state of irrigation in the projects studied.

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