Assessment of the Economic Value of Selected Wetlands in Southwest, Nigeria

Abstract

This study assessed the economic value of the Eleyele, Eriti, and Lagos Lagoon wetlands in Oyo, Ogun and Lagos States (Nigeria) respectively. The study was based on primary data collected on livelihood activities of 160 wetland users that were drawn in a multistage sampling process. The data were obtained by administration of questionnaire that was designed to elicit information on the respondents’ socio-economic characteristics and livelihood activities around the wetlands. The wetland users’ willingness to pay (WTP) for utilization of the wetlands was also assessed by Contingent Valuation method based on an iterative bidding game process. The data were analysed by descriptive and budgetary techniques as well as Tobit regression analysis. The study revealed that the most prevalent economic activities around the wetlands include crop farming and fishing. Most (71.8%) of the operators of these livelihood activities were males, majority (58.8%) of which had no more than primary school education.  Budgetary analysis showed that the Net Factor Income (NFI) per ha per year, which is the economic value of the wetland when used for crop farming, was N349,024 for Eleyele wetland, N239,694 for Eriti wetland,  N263,699  and N175,633  for Badagry  and Epe wetlands respectively. In terms of fishing, the economic value per year of Eleyele wetland’s water body was estimated to be N32, 341,920 while that of Epe wetland was N1, 486,974,024.  Eriti. The average WTP was N8,050.42, and was significantly (p<0.05) higher among fisherfolks (N11,967.57/year) and crop farmers (N8,370.40). The Tobit regression analysis result showed that the WTP for wetland utilisation is significantly (p<0.05) higher among female-folks than their male counterparts and those in the urban area vis-a- vis their rural counterparts. The study therefore concludes that wetlands are not wastelands but of economic importance to various users and  thus recommends that the government should put in place measures to reduce wetland destruction as this leads to significant income losses to members of farm households.