Research Journal of Applied Sciences

Year: 2020
Volume: 15
Issue: 2
Page No. 57 - 64

Analysis of Profitability of Small-Scale Fishing in Ondo State, Nigeria

Authors : Olusumbo Adeolu Adelaja, Roslina Binti Kamaruddin and Lee Wen Chiat

Abstract: This study investigates the cost and return of small-scale fishing along coastal areas of Ondo state, Nigeria. Multi-stage sampling technique was used to select 400 small-scale fishermen from 20 viable fishing communities along coastal areas of Ondo state using structured questionnaire. Analysis of data collected was done with the use of descriptive statistics and gross margin analysis. The largest fixed and variable assets were outboard engine 88.32% and fuel 67.16%. Gross margin analysis indicates that small-scale fishing is profitable in the study area gross margin in Nigerian Naira (N) N1, 261, 476.60 k/fisherman/year (N105, 123.05/fisherman/month) Benefit Cost Ratio (BCR) Rate of Return on Investment (RORI) Gross Revenue Ratio (GRR) Net Profit Margin (NPM) and Expense Structure Ratio (ESR) were 1.29, 0.29, 0.77.0.23 and 0.11, respectively. The multiple regression result shows the coefficient determination, R2 value of 0.721 shows that 72.1% of the output of fish level was determined by size of fishing boat, outboard engine, fishing nets and fuel. Constraints faced by small-scale fishermen in the study area include lack of infrastructural facilities, poor road networking system and lack of credit facilities. In conclusion, government should provide access to credit facilities at an affordable interest rate and storage facilities to ensure good quality fish.

How to cite this article:

Olusumbo Adeolu Adelaja, Roslina Binti Kamaruddin and Lee Wen Chiat, 2020. Analysis of Profitability of Small-Scale Fishing in Ondo State, Nigeria. Research Journal of Applied Sciences, 15: 57-64.

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