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Input – output dynamics of counterpart funds payments (cfp) and sub project implementation (spi) – acquisition of assets (aa) of fadama iii in rivers state, nigeria; 2009 – 2012

Somiari, Fubara Richard and Uzomba, Peter Chika

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 established a long run relationship between the dependent and independent variables. The parsimonious result for the Total Project Implemented (TPI) equation showed that 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. It was conclude that input-output dynamics of counterpart fund payment (CFP) and sub project implementation – acquisition assets of FADAMA III project in Rivers state revealed that inputs in terms of BCF was able to stimulate TPI and AAG by maintaining a positive relationship of about 92% and 91% respectively, while both state and local governments funds were found to be poor and as such failed to spur TPI and AAG within the period of study. 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 and the Federal Government of Nigeria, through the Federal Ministry of Agriculture should mandate the beneficiaries, local and state governments to make full payments of their counterpart funds, as this will increase the number of projects that could be implemented as demonstrated by the result of Parsimonious Error Correction Model.

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