ECONOMIC VIABILITY AND COST-EFFECTIVENESS OF AGRIBUSINESS ENTERPRISES: EMPOWERMENT PROGRAM OF KANO AGRO-PASTORAL DEVELOPMENT PROJECT/SASAKAWA AFRICA ASSOCIATION IN KANO STATE, NIGERIA

Abstract

The study assessed the economic viability and cost-effectiveness of agribusiness enterprises supported under the Kano State Agro-Pastoral Development Project (KSADP) and Sasakawa Africa Association (SAA) in Kano State, Nigeria. Using a multistage sampling procedure, data were collected from 225 beneficiaries drawn from five major enterprises: rice parboiling, rice milling, youth spray service provision, onion storage, and agro-input dealerships. The results revealed that all the enterprises with the exception of rice par-boiling were male dominant with relatively large household size ranging from 7 – 11 persons. It was also found that all the enterprises were profitable with positive net incomes and high benefit-cost ratios (BCR) ranging from 1.99 to 5.62 and OR of 0.02 to 0.45. It is concluded that agribusiness enterprises were profitable and cost-effective. It is recommended that the beneficiaries should be encouraged to adopt renewable energy solution and improve market linkages to enhance profitability and sustainability of the enterprises.