Targeted Subsidies and Private Market Participation: An Assessment of Fertilizer Demand in Nigeria

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dc.creatorLiverpool-Tasie, Lenis Saweda O.
dc.date2012
dc.date2024-10-01T13:58:28Z
dc.date2024-10-01T13:58:28Z
dc.date.accessioned2026-06-27T15:33:51Z
dc.descriptionThough input vouchers are being publicized as a mechanism to simultaneously target subsidies and develop demand in private markets, limited empirical evidence of their effect on private input demand exists. Few empirical studies, if any, exist on the effect of targeted subsidies on private input demand in Nigeria or West Africa . Consequently this study begins to fill this gap by estimating the effect of a targeted input subsidy on farmer participation in the private fertilizer market in Nigeria. Using a double hurdle model and a control function approach, this study explores the effect of increasing access to subsidized fertilizer on farmer participation in the private fertilizer market in Kano, Nigeria. The study finds evidence that farmers who received subsidized fertilizer in 2009 tended to have less assets than their counterparts who did not. Within this context, although receiving subsidized fertilizer did not appear to increase the probability of participating in the private fertilizer market, it did increase the quantity of fertilizer purchased from the private market once the decision to participate had been made. It appears that one benefit of the voucher program was that it developed links between rural farmers and input suppliers. Furthermore, where private fertilizer markets are weak, results indicate that there could be significant gains from the temporary use of voucher programs to create links between input suppliers and farmers.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/153935
dc.identifier.urihttp://hdl.handle.net/123456789/107935
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.rightsOpen Access
dc.sourceLiverpool-Tasie, Lenis Saweda. 2012. Targeted Subsidies and Private Market Participation: An Assessment of Fertilizer Demand in Nigeria. IFPRI Discussion Paper 1194. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/153935
dc.subjectsubsidies
dc.subjectfertilizers
dc.subjectdemand
dc.subjectmarket access
dc.subjectprivate sector
dc.subjectfarm inputs
dc.subjectproductivity
dc.titleTargeted Subsidies and Private Market Participation: An Assessment of Fertilizer Demand in Nigeria
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)