EVALUATION OF THE PROFITABILITY OF FISHING VENTURES BY FISH TRADERS ALONG THE EZU, OMABALA, AND OTUOCHA RIVERS IN ANAMBRA STATE

EVALUATION OF THE PROFITABILITY OF FISHING VENTURES BY FISH TRADERS ALONG THE EZU, OMABALA, AND OTUOCHA RIVERS IN ANAMBRA STATE CHAPTER ONE: INTRODUCTION 1.1 Background of the Study Nigeria’s new Agricultural Promotion Policy (APP), spanning from 2016 to 2020, prioritizes goals such as food security, import substitution, job creation, and economic diversification. This policy aims to integrate agricultural commodity value chains into broader global supply networks. It also seeks to enhance agricultural productivity to increase foreign exchange earnings from exports, double household incomes, and accelerate agricultural growth. While initial export commodities are limited, the policy envisions expanding exports to include fish, cashew nuts, bananas, avocados, and mangoes in the near future. With Nigeria’s growing population and a shift towards healthier diets, demand for fish is rising. Fish is highly nutritious, being cholesterol-free and low in fat. Given Nigeria’s abundant water resources—including rivers, springs, dams, lakes, and oceans—the country has great potential for aquaculture development, which is the sustainable source of fish. Nigeria’s land area of 923,768 km² includes an 853 km coastline and a vast network of inland waterways (Shiming, 2020). Fish farming plays a crucial role in improving nutritional health, providing raw materials for industries, advancing rural development, expanding export opportunities, promoting natural resource management, and conserving biodiversity (Dagtekin et al., 2017; FAO, 2016). Despite these potentials, Nigeria spends approximately 125.38 billion Naira annually on importing 1.9 million metric tonnes of fish (Federal Ministry of Agriculture and Rural Development [FMARD], 2016), amounting to about 700 million USD. Since 1991, food demand has outpaced supply, creating a fish deficit of around 2 million metric tonnes in 2016, with local fisheries achieving only about 30% self-sufficiency. The fisheries sector’s contribution to Nigeria’s GDP remains low at 4%. Essential infrastructure and services at fishing, processing, and marketing sites are either lacking or in poor condition. Marketing is predominantly in smaller towns and cities, but also in large urban centers, leading to losses during transport. These losses are exacerbated by road hazards and security threats such as armed robbery. Additionally, declines in ocean catch, reduced aquaculture yields, and rising fish feed costs have lowered overall productivity. The fragmented and small scale of markets hinders profitability and discourages private investments across the fishery value chain. Imports continue to fill supply gaps, negatively impacting income growth and food security. Critical questions include: How can larger investments be attracted to fish-producing communities? How can economic players gain and sustain market access? How can profitability be improved to encourage private investment?. Enhancing profitability by linking small-scale fish entrepreneurs to output markets is vital to stimulate private investments, boost income, create jobs, and reduce poverty. Repositioning the fisheries subsector to reduce fish import dependence and balance supply and demand for improved food security and economic benefits is urgent. Improved market opportunities, productivity, and profitability could significantly reduce Nigeria’s high levels of fish imports (Ugwumba, 2016). This study focuses on analyzing the profitability of small-scale fishery enterprises at production, processing, and marketing stages, aiming to propose strategies for improving actors’ performance and attracting investment. These objectives align with targets set in the government’s new agricultural promotion policy. Specifically, this research examines the profitability of fishing activities by fish mongers along the Ezu, Omabala, and Otuocha rivers in Anambra State. 1.2 Statement of the Problem Generally, fishermen often lack adequate financial management skills to effectively optimize their resources, limiting their income and profitability. This implies that sector growth depends on fishermen’s socio-economic characteristics, such as capital base, education, fishing experience, gender, and cooperative membership. Cooperatives, in particular, can play a crucial role in improving profitability for artisanal fish farmers (Pius, 2019). They are regarded as effective mechanisms for maximizing community benefits and reducing risks associated with poor fisheries management, livelihood insecurity, and poverty—issues faced by many small-scale fishermen worldwide. Existing studies in Anambra State mostly focus on fish catch volumes and income but have not specifically addressed fishing activities on the Ezu, Omabala, or Otuocha rivers. This represents a research gap. Furthermore, few studies have examined how fishing inputs and profitable activities affect fish mongers’ earnings and the variation in profitability among fishermen. Hence, this study seeks to fill these gaps by examining fish production along these rivers. 1.3 Objectives of the Study The main objective is to assess the profitability of fishing activities by fish mongers in the Ezu, Omabala, and Otuocha rivers in Anambra State. The specific objectives are to: i. Determine whether fish mongers’ fishing activities generate profit. ii. Identify the marketing channels and distribution networks for fishing activities along the three rivers. iii. Identify the challenges limiting profitability for fish mongers. iv. Explore ways fish mongers can enhance the profitability of their fishing activities. 1.4 Research Questions The study seeks answers to the following questions: i. Is there profit in the fishing activities of fish mongers? ii. What marketing channels and distribution systems exist for fishing activities in the Ezu, Omabala, and Otuocha rivers? iii. What constraints affect the profitability of fish mongers’ fishing activities? iv. How can fish mongers increase the profitability of their fishing activities? 1.5 Research Hypotheses H0: Fishing activities by fish mongers are not profitable. HA: Fishing activities by fish mongers are profitable. 1.6 Significance of the Study This study is important to entrepreneurs in the fishing sector as it highlights the challenges fish mongers face and how these affect profitability. It also contributes to the academic literature, providing valuable insights for researchers and policymakers. 1.7 Scope of the Study The study focuses on assessing profitability in fish mongers’ fishing activities, identifying marketing channels, highlighting profitability constraints, and proposing ways to improve profits. The geographic scope is limited to fishing activities along the Ezu, Omabala, and Otuocha rivers in Anambra State. 1.8 Limitation of the Study As with any research, some constraints were encountered. Limited funding restricted the researcher’s ability to source comprehensive materials and conduct extensive data collection, leading to a moderate sample size. Additionally, balancing this study with other academic commitments reduced the available research time. 1.9 Definition of Terms Profitability: The extent to which a business or activity yields financial gain. Fishing activities: The act of searching for, catching, harvesting, or attempting to harvest fish resources. Fish mongers: Shops or vendors that sell fish.