The effect of counterpart fund payments on the implementation of fadama iii international donor project in rivers state: 2009-2012

Author: 
Somiari, Fubara Richard, Chukuigwe, E. C., Ewubare, B and Ekine, D. I

This study analyzed the effects of beneficiary contributions, local and state government counterpart fund payments on the implementation of FADAMA III project in Rivers State from 2009 –2012. Monthly and annual time series secondary data of counterpart fund payments within the period under review were used for the analysis. The study made use of descriptive statistics, the short run ordinary least square test, unit-root test analysis, Co-integration procedure, as well as Parsimonious Error Correction Models. Results show long run relationship between the dependent and independent variables. The parsimonious result for the Total Project Implemented (TPI) equation shows that all for every ₦1 million paid as beneficiary contributions by FADAMA Groups, the value of Total Project Implementation increases by N2.91 million. The result of Asset Acquisition for Groups (AAG) equation shows that with every N1 million paid as beneficiary contributions by FADAMA Groups, the value of Asset Acquired increases by N1.12 million monthly. The result for Capacity Building for Groups (CBG) equation shows that for every N1 million paid as beneficiary contributions by FADAMA Groups, the value of Capacity Building increases by N137,620 monthly. The result for the OPT equation shows that for every N1 million contributed by beneficiaries of FADAMA, the value of Output Produced is increased by N4.72 million monthly. Also, every N1 million disbursed by the World Bank fund to FADAMA Groups, the Output Produced increases by N1.42 million monthly. Based on the findings of the study, it is recommended that there should be legislative approval to deduct counterpart fund payments at source to avoid the problem of nonpayment after project takeoff as this will contribute effectively to full implementation of FADAMA III project.

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