Profitability analysis of small-scale fishing along Coastal Areas of Ondo State, Nigeria

Abstract

This study evaluated the profitability analysis of small-scale fishing along coastal areas of Ondo State, Nigeria. Structured questionnaire was used to collect data from 400 small-scale fishermen which were selected via multi-stage sampling procedure. Data collected was analyzed using descriptive statistics and profitability indicators. Results revealed that mean age of respondents was 39 years, among the fixed assets for fishing, outboard engine has the largest percentage cost (88.32%) while among variable assets, fuel has the largest percentage cost (67.16%). Profitability indicators such as Benefit Cost Ratio (BCR) 1.29, Gross margin ₦1,261,476.60k/fisherman/year, Return on Investment (ROI) 0.29, Net Profit Margin (NPM) 0.23 and Gross Revenue Ratio (GRR) 0.77 were used to estimate the profitability of small-scale fishing. The findings further revealed that fishing boat (1.284), outboard engine (0.352), fishing nets (1.342) and fuel (0.193) were positively and statistically significant at p<0.05 level with fish output level while accessories (floats, sinks and hooks) (0.142) was positively and statistically significant at p<0.1 with fish output level. The R2 value was 72.1% showing that the independent variable was well explained by the exogenous variables. Problems encountered by small-scale fishermen include inadequate infrastructural facilities, poor road networking system and inadequate credit facilities. Based on the findings, it was recommended that small-scale fishermen should organize themselves into cooperatives in order to increase their credit accessibility. Likewise, government should embark on construction of good road network in order to ease transportation of fish harvested to the neighboring towns.