The document summarizes a study on the impact of large-scale agricultural land investments (LALIs) on employment in Nigeria. Preliminary results show that households in communities with LALIs have slightly lower average welfare outcomes than those without. Quantitative analysis uses a differences-in-differences technique to examine the average treatment effect. Qualitative fieldwork at an oil palm LALI in Ogun State found it provides regular employment to accountants and managers, but most workers are casual laborers from neighboring countries earning about 800 Naira per day. Issues include a lack of job security, low pay increases, and few benefits for most workers. The study aims to better understand LALI impacts on host communities and implications for policy.

1. Large-Scale Agricultural Land Investments and
(Un)Employment in Nigeria
Evans Osabuohien (evans.osabuohien@covenantuniversity.edu.ng)
[Work-in Progress; Please Do Not Cite]
Panel Session: Africa’s Youth and Rural Futures: Critical Perspectives
from Young African Academics
Conference on Land Policy in Africa
Addis Ababa, Ethiopia – November 2017
www.future-agricultures.org/apra
Funded by UK aid from the UK Government

2. Outline of Presentation
 The Motivation
 Background Issues
 Key Objectives
 Analytical Techniques
 Preliminary Findings
 Implications & Concluding Remarks
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3. The Motivation
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Figure 1: Top 10 Major Recipients of LALIs in Africa
intended_size contract_size Nos of Deals

4. Background Issues
The issues bordering on LALIs:
i. Food security concerns
ii. Biofuels
iii. Agricultural transformation
iv. Development of host communities
v. Impact on households in host communities
vi. etc.
Nigeria has experienced increased flow of LALIs.
Government & private sector involvement.
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5. Key Objectives
• Investigate how households’ welfare
outcomes in communities with LALIs differ
from those without LALIs.
• Examine nature of employment and wage in
LALIs projects.
• Underscore the impact of LALIs on welfare of
HHs in host communities.
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6. Analytical Techniques 1
• Quantitative
• Data: Living Standards Measurement Study-Integrated
Study on Agriculture (LSMS_ISA).
• Communities (LGAs) with LALIs are identified.
• Wave 2 (2012-2013) & Wave 3 (2014/2015).
• Estimated using Difference-in-Difference (DiD) technique.
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7. Analytical Techniques 2
• Qualitative
• Based on fieldwork at LALI in Ogun State.
• It spans over 2000 Ha in 3 communities.
• The farm is into cultivation of oil palm,
cassava, plantain, maize, water melon, and
vegetables.
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8. Preliminary Results 1
• Quantitative (Summary Statistics)
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All
Households in
Communities with LALIs
Households in
Communities without
LALIs
Variable Mean Std. Dev. Mean Std. Dev. Mean Std. Dev.
Share of children 0.637 0.455 0.677 0.444 0.636 0.455
Share of female 0.527 0.474 0.555 0.472 0.526 0.474
HH assets 0.206 0.544 0.180 0.221 0.207 0.549
Age of household 17.911 20.130 15.159 16.850 17.964 20.185
Plot area cultivated 5213.03 15810.56 7308.856 10534.15 5172.88 15896.42
Land harvest 523.006 2339.484 440.123 784.189 524.325 2355.955
HH expenditure 3.616 8.165 2.992 7.383 3.628 8.179
Food expenditure 3.286 8.147 2.686 7.362 3.297 8.161
Non-food
expenditure 0.331 0.324 0.306 0.223 0.331 0.325

9. Preliminary Results 2
• Quantitative (Average Treatment Effect – DiD)
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10. Preliminary Results 3
• Findings from Qualitative Approach
Employment: regular & casual workers.
Regular workers: accountants, assistant farm manager,
farm manager & technical supervisors.
casual workers: 50 per day during peak periods (land
preparation, planting, weeding).
Many not from immediate communities but
neighbouring countries (Benin Republic & Togo).
Some take up contract (e.g. plant, weed) and are paid
commission for their activities.
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11. Preliminary Results 4
 They work 8am – 5pm & are paid average wage of N800 per day.
 Those with technical skills (e.g. tractor operators) earn about N1000
to N1300 per day.
 Some CSR to Communities: fresh produce, trainings, industrial
training.
 Emerging Issues
o Quality control & standards (laboratory for testing) are lacking
o No job security for majority of the workers
o Low incentives
o no pay rise for over three years
o differences in pay among same level colleagues
o Workers ‘passing time pending when other job opportunities come’
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12. Implications & Concluding Remarks
• Investors are powerful; hence, need for
interaction with community farmers
association.
• Mechanism to guide the LALIs operations and
the protection of workers are essential.
• Issue of enforcement of existing rights, equity
& transparency in LALIs are crucial.
• More research: understanding of LALIs
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13. Thank You
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Team members:
1. Evans Osabuohien
2. Felicia Olokoyo
3. Uchenna EFOBI
4. Alhassan Karakara
5. Ibukun Beecroft
Comments/Enquiries
Dr Evans Osabuohien, Dept. of Economics & Development Studies,
Covenant University, Ota, Ogun State, Nigeria
(evans.osabuohien@covenantuniversity.edu.ng)