2026 Vol-6 Issue-2 / DETERMINANTS OF HOUSEHOLD INCOME AND CONSTRAINTS TO DIVERSIFICATION AND SAVINGS AMONG SMALLHOLDER FARMERS IN LAFIA LOCAL GOVERNMENT AREA, NASARAWA STATE, NIGERIA

This study analysed the determinants of household income under income source diversification and the constraints to diversification and savings among smallholder farmers in Lafia Local Government Area of Nasarawa State, Nigeria. Specifically, the study described the socio-economic characteristics of the respondents, estimated the effect of diversification and socio-economic factors on household income, and identified the constraints to income source diversification and savings. Amultistage sampling procedure was used to select 100 farming household heads, and primary data were collected with a structured questionnaire and analysed using descriptive statistics, ranking and multiple regression analysis. The respondents were mostly male (61%) and married (62%), with mean age of 42 years, mean farm size of 0.77 hectares and mean farming experience of 21 years. The regression model explained 78% of the variation in household income (R² = 0.780). The number of income sources (β = 173,329.27; p = 0.002), gender (β = 152,864.72; p = 0.010), farm size (β = 1,098,613.79; p < 0.001), extension visits (β = 49,122.76; p = 0.001) and access to credit (β = 309,170.93; p = 0.002) significantly increased household income at the 1% level, while age, education, household size and cooperative membership were not significant. Poor access to credit (11.0%), high processing costs (10.5%) and long distance to markets and services (9.9%) ranked as the leading constraints. The study concluded that institutional and resource factors drive income among diversified farm households and recommended expanded low-interest credit, intensified extension coverage and improved rural infrastructure.