Farming households have traditionally practiced subsistence agriculture to meet food needs arising from population size and consumption levels. However, significant population growth over time has increased the need for greater agricultural output to meet increasing food demands. As the population size grows, so does the demand for food (Viana et al., 2022), suggesting that the traditional subsistence model is no longer sufficient to meet current food needs. In response to these challenges, agriculture has shifted from subsistence farming to semi-commercial and eventually to fully commercial, market-oriented agriculture. This shift from subsistence to market-oriented agriculture is known as agricultural commercialization.
As defined by Otekunrin and Otekunrin (2022), agricultural commercialization involves shifting from subsistence farming to a market-oriented approach, which increases sales and income for small-scale farming households. This transition is driven by higher output volume, value addition, or both, to meet the demands of both domestic and international markets. However, successful commercialization depends on access to both input and output markets, as well as the effective coordination of various economic sectors. For commercialization to succeed, it is essential that sectors collaborate, as the inputs required often come from other sectors or foreign sources, while the resulting products are typically sold in both domestic and international markets.
Access to land and the rights held by farming households over their land are key factors in crop commercialization. Even with access to fertilizer and improved seeds, the size of the land still limits production capacity. Therefore, access to more land for cultivation increases output and enhances the potential for commercialization. Similarly, the type of rights a farming household has over farmland determines the farming activities that can be carried out and influences the ability to use land as collateral for loan procurement. Viana et al. (2022) note that for a long time, crop commercialization has been recognized as a key driver of agricultural progress in developing countries, serving as an important strategy for improving food security and enhancing the standard of living.
Crop commercialization can occur through several pathways: increasing the production of traditional crops to generate surpluses for sale, expanding post-harvest activities that enhance the value of agricultural produce, developing new crops specifically for market purposes, and integrating new income-generating enterprises (Alawode et al., 2018). It holds significant potential for transforming small-scale farming households. According to Otekunrin and Otekunrin (2022), crop commercialization is vital for social and economic development, as it increases marketable surplus and boosts household income. In this context, marketable surplus refers to the portion of crop output that is available for consumption by non-farming households or for use as raw material in manufacturing and processing industries. Generally, a higher marketable surplus translates into greater income for farming households. Therefore, most farming households aspire to achieve high levels of crop commercialization. However, this goal remains out of reach for many farmers due to persistent challenges including—but not limited to—inadequate access to land and insecure land tenure rights.
The land tenure system refers to the legal and social frameworks through which individuals and groups acquire rights and responsibilities to use, manage, and alienate land (Zhou et al., 2022). It determines who has the right to use land, the purposes for which it can be used, and the rules governing the transfer of these rights. Farmers access land through various means, which in turn affects the type of rights they have on the land. In Nigeria, access to land is limited for the majority of individuals eager to engage in agriculture (Oluwatayo et al., 2019). This limited access is compounded by high levels of land fragmentation (Oyebanjo, 2023).
Furthermore, the way farming households acquire land often limits how they can use it (Adeyemo and Adeagbo, 2024), influencing the type of rights they have. These rights can be either temporary (use rights) or permanent. Permanent rights allow the owner to transfer ownership through land markets or pass the land on to their heirs. Land acquisition is typically verified through a land document, a written record that proves possession, ownership, or use. This document not only clarifies the type of rights the holder has but also plays a key role in establishing property rights, resolving disputes, and facilitating agricultural transactions such as renting, leasing, or buying land.
Access to land is crucial for increasing crop production, as most agricultural activities rely heavily on land, including the availability of storage facilities to store surplus produce. The type of land rights held can also determine how land is utilized. Therefore, land is a critical factor in large-scale crop production, which contributes to higher levels of commercialization. While research on agricultural commercialization has been conducted, the role of the possession of land documentation in crop commercialization in Nigeria has yet to be thoroughly examined.
This study seeks to answer the following research questions:
Which land documents are held by farming households in Nigeria?
To what extent do farming households engage in crop commercialization?
What impact do land documents have on crop commercialization among farming households?
The study aims to examine the effect of land documents on crop commercialization, with the goal of unlocking the potential of farming households in Nigeria. The specific objectives are:
To examine the types of land documents held by farming households.
To assess the level of crop commercialization among farming households.
To evaluate the influence of land documents on crop commercialization by farming households.
The theories underpinning this study are the Property Rights Theory and the Agricultural Production Theory.
Property Rights Theory posits that well-defined and secure property rights are essential for economic development and growth. According to this theory, clear and enforceable property rights incentivize individuals to invest in and improve their property, leading to increased productivity and economic growth. In the context of land documents and crop commercialization, the theory suggests that farmers who hold legal land documents and thus secure land rights are more likely to invest in commercial crops. Moreover, clear land rights can help reduce land-related conflicts and prevent inefficient land use practices.
Agricultural Production Theory asserts that the commercialization of crops is influenced by various factors, including inputs, technology, and natural resources. In relation to this study, land documents can significantly affect crop commercialization because they dictate the ownership structure of land and influence a farmer's incentives to invest in crop production and commercialization. For instance, if small-scale farmers lack secure land tenure, they may be less inclined to invest in long-term land improvements or adopt new technologies that could increase crop yields and profitability.
Daudu et al. (2022) conducted a study in the Southwest region of Nigeria, which revealed that the primary form of land ownership and acquisition among household heads was through family inheritance. This accounted for 56.7% of male-headed households and 46.4% of female-headed households. These findings indicate that, irrespective of gender, a significant proportion of household heads acquired their farmland through family transfer or inheritance. The study also found that 21.3% of male-headed households and 19.1% of female-headed households acquired land through outright purchase, while 13.5% of male-headed and 24.8% of female-headed households rented or leased farmland.
Alawode and Makinde (2021) explored household crop commercialization in Nigeria and classified the level of commercialization into three categories: subsistence, semi-subsistence, and commercial. Their findings showed that 32.81% of households were subsistence farmers (with a household crop commercialization index, or HCCI, of zero), while only 1.71% were fully commercial (with an HCCI of 100). The majority (65.48%) fell within the semi-subsistence category (HCCI values of more than 0 and less than 100). This suggests that Nigeria relies heavily on the marketable surplus from semi-subsistence households to support its growing population. Additionally, 58.25% of households were classified as having a low level of crop commercialization, 26.26% were in the medium category, and 15.50% were classified as high.
Hussayn et al. (2020) investigated the relationship between agricultural commercialization and poverty reduction among smallholder cassava farmers in Oyo State, Nigeria. They found that 77.22% of cassava farmers engaged in relatively high levels of commercialization, with a mean household commercialization index of 58%. The findings suggest that increased commercialization could play a key role in reducing poverty among cassava farmers, as it often provides avenues for economic improvement and poverty alleviation.
Otekunrin et al. (2022) assessed agricultural commercialization and the challenges faced by smallholder cassava farmers in Oyo State, Nigeria. Using descriptive statistics, crop commercialization indices (CCI), and an ordered logit model, they found that 83.9% of cassava farmers were involved in the commercialization of cassava roots. However, they also identified significant challenges, including attacks from Fulani herdsmen, which destroyed cassava crops. The study suggested that addressing these challenges would require policies focused on rural infrastructure development and resolving the farmers-herders conflict.
Do and Nguyen (2024) analyzed the impact of crop commercialization on smallholders’ resilience to shocks in rural South Asia. Using data from 1,370 smallholders in Thailand and 1,497 in Vietnam, the study employed a generalized structural equation model and quintile regression. The findings showed that crop commercialization positively impacts smallholders’ resilience, with the strongest effects observed among those in the 10th and 25th quintile groups of resilience capacity.
Adeyemo and Adeagbo (2024) examined the accessibility and utilization of agricultural land by smallholders in Nigeria, focusing on the Presidential Technical Steering Committee on Land Reforms (2009). The study, based on a sample of 4,032 respondents sourced from the 2018/2019 Living Standard Survey/Integrated Survey on Agriculture (LSMS/ISA), used descriptive statistics and a two-stage least squares model for data analysis. The findings revealed that land titling significantly increased the return on production output (p < 0.05). Additionally, possession of land titles was positively associated with higher per capita food consumption expenditure (p < 0.05) among farming households. Specifically, households with land titles had an average food expenditure of ₦9,868.00, compared to ₦6171.72 for those without land titles (p < 0.01). Furthermore, farm-level investment variables, such as credit use and mechanization, were strongly linked to improved food security, as indicated by the possession of land titles.
The study area is Nigeria. As of April 7, 2025, the population of Nigeria is 236,360,610, representing 2.89% of the world's total population (Worldometer, 2025). The country has a population density of 261 people per km2 and covers a total land area of 910,770 km2 (351,650 mi2). Nigeria boasts a vast agricultural sector with immense growth potential. Its diverse ecological zones, abundant water resources, and extensive arable land create favorable conditions for cultivating a wide range of crops, providing significant employment opportunities, and making a substantial contribution to the national GDP.
The data for this study were sourced from the Nigeria Living Standards Survey (NLSS) 2018–2019. The relevant data includes information on land ownership documents, crop commercialization, and socio-demographic characteristics of households. The land documents in the dataset comprise title deeds, certificates of occupancy (C of O), customary certificates of occupancy (CC of O), rights of occupancy, survey plans, registered rental contracts, and registered leases. Commercialization data covers various aspects, such as crop production, quantities produced, quantities sold, quantities exchanged for labor, quantities used for rent payment, quantities consumed, quantities given as gifts, and quantities saved for the next season. The socio-demographic characteristics considered are age, sex, marital status, educational level, sector (rural/urban), and geopolitical zone. After cleaning the data to extract the necessary information, a sample of 2,240 households was selected for analysis.
The study employs descriptive statistics, the Household Crop Commercialization Index (HCCI), and the Tobit regression model for analysis.
The HCCI is calculated as the ratio of the gross quantity of crops sold by a household in a given year (j) to the total gross quantity of crops produced by that household in the same year, expressed as a percentage. This method has been used in several previous studies on crop commercialization in Nigeria, including those by Otekunrin et al. (2022), Alawode and Makinde (2021), Okoye et al. (2021), and Ele et al. (2013).
Household Crop Commercialization Index (HCCI) is given as:
HCCIh – Household Crop Commercialization Index for all crop sales by household h in year j
HCCIh ranges between 0 and 100
HCCIh = 100% if the household sells all its crops – Full commercialization
HCCIh = 66.61–99.9% if the household sells a high proportion of crops produced – High commercialization
HCCIh = 33.31–66.6% if the household sells an average proportion of crops produced – Medium commercialization
HCCIh = 0.1–33.3% if the household sells a small proportion of crops produced – Low commercialization
HCCIh = 0% if the household sells none of its outputs – No commercialization (subsistence crop production).
The high, medium, and low levels of commercialization represent semi-subsistence farming (Otekunrin et al. 2022; Alawode and Makinde, 2021).
The Tobit model was chosen as a suitable analytical tool due to censoring in the dependent variable, which represents crop commercialization. This is supported by Toker et al. (2021). Alawode and Makinde (2021), and Ele et al. (2013) also used the Tobit model where the dependent variable – Crop Commercialization Index – was censored at zero.
The standard Tobit model is defined as:
Such that Y can be observed as:
Y – Dependent variable (Household Crop Commercialization Index), where HCCIh ranges between 0 and 100
Xi – Vector of explanatory variables
εi – Error term
The model is explicitly defined as:
Y – Level of crop commercialization (0 ≤ HCCI ≤ 100)
β0 – Constant term
β1 – β9 – Regression coefficients to be estimated
X1 – X9 – Independent variables:
X1 – Title deed (yes =1, otherwise = 0)
X2 – Certificate of occupancy (yes =1, otherwise = 0)
X3 – Customary certificate of occupancy (yes =1, otherwise = 0)
X4 – Right of occupancy (yes =1, otherwise = 0)
X5 – Survey plan (yes =1, otherwise = 0)
X6 – Rental contract registered (yes =1, otherwise = 0)
X7 – Lease registered (yes =1, otherwise = 0)
X8 – Right to sell (yes =1, otherwise = 0)
X9 – Right to bequeath (yes = 1, otherwise = 0)
Table 1 presents the socio-demographic characteristics of Nigerian farming households in possession of land ownership documents. The findings reveal that crop farming in Nigeria is predominantly carried out by male household heads, accounting for 92.05% of respondents. This suggests that land documentation is largely concentrated among male farmers.
Socio-Demographic Characteristics of Farming Households in Nigeria
| Socio-economic variable | Frequency (n = 2,240) | Percentage (%) |
|---|---|---|
| 1 | 2 | 3 |
| Gender | ||
| Male | 2,062 | 92.05 |
| Female | 178 | 7.95 |
| Age | ||
| ≤ 30 | 205 | 9.15 |
| 31–60 | 1,548 | 69.11 |
| 60 > | 487 | 21.74 |
| Mean = 49.6 (±14.6) | ||
| Marital status | ||
| Never married | 58 | 2.59 |
| Married | 1,951 | 87.10 |
| Divorced | 52 | 2.32 |
| Widowed | 179 | 7.99 |
| Educational level | ||
| Non-formal | 1,726 | 77.05 |
| Primary | 204 | 9.11 |
| Secondary | 89 | 3.97 |
| Tertiary | 221 | 9.87 |
| Sector | ||
| Urban | 658 | 29.38 |
| Rural | 1582 | 70.63 |
| Geopolitical Zone | ||
| North Central | 286 | 12.77 |
| North East | 440 | 19.64 |
| North West | 752 | 33.57 |
| South East | 148 | 6.61 |
| South South | 229 | 10.22 |
| South West | 385 | 17.19 |
Source: computed from the 2019 Nigeria Living Standards Survey.
A significant proportion of respondents (69.11%) were within the economically active age range of 31–60 years, with a mean age of 49.6 years (±14.6). The majority were married (87.10%), had no formal education (77.05%), and resided in rural areas (70.63%). Additionally, the highest concentration of farming households was recorded in the North West geopolitical zone, representing 33.57% of the sample.
As shown in Table 2, more than half of the farming households (58.79%) held a title deed, making it the most commonly owned land document. This was followed by survey plans (15.13%), rights of occupancy (14.38%), and certificates of occupancy and customary certificates of occupancy, each held by 11.25% of households. A smaller proportion of households possessed registered rental contracts (3.88%), and registered leases (1.92%).
Land Documents held by Farming Households in Nigeria
| Variable | Frequency (n = 2,240) | Percentage (%) |
|---|---|---|
| Land document held | ||
| Title deed | 1,317 | 50.46 |
| Certificate of occupancy | 252 | 9.66 |
| Customary certificate of occupancy | 250 | 9.58 |
| Right of occupancy | 322 | 12.34 |
| Survey plan | 339 | 12.99 |
| Rental contract | 87 | 3.33 |
| Lease registered | 43 | 1.65 |
| Likelihood of losing ownership in land | ||
| Not at all likely | 1,605 | 71.65 |
| Slightly likely | 123 | 5.49 |
| Moderately likely | 48 | 2.14 |
| Very likely | 378 | 16.88 |
| Extremely likely | 86 | 3.84 |
Source: computed from the 2019 Nigeria Living Standards Survey.
The findings also show that a majority of households (71.65%) were unlikely to experience involuntary loss of land ownership, largely because they possessed officially recognized land documents.
Further analysis presented in Table 3 categorizes the types of land documents held by farming households into three groups: legally recognized, customarily recognized, and temporary land documents. The legally recognized land documents – comprising the title deed, the certificate of occupancy, and the customary certificate of occupancy – were held by the majority (69.70%) of the farming households. The customarily recognized documents – the right of occupancy and the survey plan – were held by approximately one-quarter of the respondents (25.33%). Meanwhile, a small fraction (4.98%) held temporary land documents, including registered rental contracts and registered leases. Legally recognized land documents are those acknowledged by the government and confer permanent rights to the landholder.
Categories of Land Documents Held by Farming Households in Nigeria
| Categories of land document | Frequency (n = 2,240) | Percentage (%) |
|---|---|---|
| Legally Recognized Land Documents | ||
| Title deed | 1,317 | 50.46 |
| Certificate of occupancy | 252 | 9.66 |
| Customary certificate of occupancy | 250 | 9.58 |
| Total | 1,819 | 69.70 |
| Customarily Recognized Land Documents | ||
| Right of occupancy | 322 | 12.34 |
| Survey plan | 339 | 12.99 |
| Total | 661 | 25.33 |
| Temporary Land Document | ||
| Rental contract | 87 | 3.33 |
| Lease registered | 43 | 1.65 |
| Total | 130 | 4.98 |
Source: computed from the 2019 Nigeria Living Standards Survey.
These findings suggest that only a small proportion of households accessed land through temporary arrangements, which involve payment for land use. The presence of rental contracts and registered leases underscores the formal documentation of short-term land transactions, which is vital for minimizing conflict over land use among farming households.
These results are consistent with previous studies. For example, Alawode et al. (2018) noted that land acquisition through purchase, rent or lease is a common practice among Nigerian farmers. Similarly, Abegunde et al. (2018) observed that households gain access to land through a variety of means in Nigeria, which can be grouped into legally recognized, customarily recognized, and temporary rights. Daudu et al. (2022) also reported that land access among farming households occurs through land through outright purchase, rental agreements, and lease contracts.
The extent of crop commercialization among Nigerian farming households is presented in Table 4. This was measured using the Household Crop Commercialization Index (HCCI), which ranges from 0 to 100%. The HCCI values were classified into five (5) categories: no commercialization, low commercialization, medium commercialization, high commercialization, and full commercialization (Alawode and Makinde, 2021; Ele et al., 2013).
Extent of Crop Commercialization by Farming Households in Nigeria
| Level of crop commercialization (%) | Frequency (n = 2,240) | Percentage |
|---|---|---|
| No (0.0) | 510 | 22.77 |
| Low (0.1–33.2) | 179 | 7.99 |
| Medium (33.3–66.6) | 1,036 | 46.25 |
| High (66.7–99.9) | 452 | 20.18 |
| Full (100) | 63 | 2.81 |
Source: computed from the 2019 Nigeria Living Standards Survey.
The results show that 22.77% of households were classified as subsistence farmers, with approximately 7.99% at the low commercialization level. Meanwhile, 46.25% of households were engaged in medium-level commercialization, 20.18% at a high commercialization level, and only 2.81% were fully commercialized crop farmers.
These findings indicate that about 74.42% of farming households held land documents and sold a portion of their crop produce (marketable surplus), suggesting that the majority of these households were semi-subsistence farmers. This aligns with Ele et al. (2013), who found a 60.40% commercialization rate among farming households (semi-subsistence) in Cross-river State, Nigeria. Similarly, Alawode and Makinde (2021) reported that most farming households in Nigeria are semi-subsistence.
Table 5 presents the Tobit regression results on the effect of land documents on crop commercialization in Nigeria. The model was significant at the 1% level, and the land documents that significantly influenced crop commercialization include title deed (p < 0.01), customary certificate of occupancy (p < 0.05), right of occupancy (p < 0.01), rental contract (p < 0.01), and registered lease (p < 0.01), as well as the right to sell (p < 0.01), and the right to bequeath (p < 0.05).
Tobit Regression Results of Land Documents and Crop Commercialization
| Independent variables | Coefficient | Standard Error | t | P>|t| |
|---|---|---|---|---|
| Title Deed | 8.790469*** | 2.367253 | 3.71 | 0.000 |
| Certificate of Occupancy | 2.892826 | 2.83328 | 1.02 | 0.307 |
| Customary Certificate of O | 6.784885** | 2.871122 | 2.36 | 0.018 |
| Right of Occupancy | 7.230951*** | 2.734733 | 2.64 | 0.008 |
| Survey Plan | 1.567915 | 2.659828 | 0.59 | 0.556 |
| Rental Contract | 14.45928*** | 4.837537 | 2.99 | 0.003 |
| Lease Registered | 21.63786*** | 6.167731 | 3.51 | 0.000 |
| Right to sell | 8.997115*** | 3.464391 | 2.60 | 0.009 |
| Right to Bequeath | –10.06622** | 3.989786 | –2.52 | 0.012 |
| Constant | 36.15185*** | 11.45485 | 3.16 | 0.002 |
| ||||
***, and ** represent 1% and 5% significance levels, respectively.
Source: computed from the 2019 Nigeria Living Standards Survey.
The results indicate that the possession of a title deed led to an 8.7% increase in the level of commercialization with a statistically significant result (p < 0.01). Similarly, the customary certificate of occupancy contributed to a 6.78% increase in commercialization, with a statistically significant relationship at the 1% level.
Additionally, the right of occupancy had a positive effect on crop commercialization, increasing the level by 7.23%, with a statistically significant result (p < 0.01). Holding a rental contract document increased commercialization by 14.45%, with a statistically significant result (p < 0.01). Similarly, the registered lease document increased the level of commercialization by 21.63%, with a statistically significant result (p < 0.01). These findings underscore the important role of rental contracts and registered leases in crop commercialization, with statistical significance at the 1% level.
The right to sell land positively influenced commercialization, leading to an 8.99% increase in the level of commercialization, with a statistically significant result (p < 0.01). Conversely, the right to bequeath negatively affected commercialization, decreasing the level by 10.06%, with a statistically significant result (p < 0.05). The positive influence of the right to sell emphasizes the importance of permanent land rights transfers in enhancing crop commercialization. This aligns with findings by Abegunde et al. (2018), who showed that land market access significantly enhances crop commercialization in Nigeria. Similarly, Alawode et al. (2018) found that participation in the land market had a significant positive effect on crop commercialization in Nigeria.
The findings of this study show that Nigeria's population is largely fed by the marketable surplus of semi-subsistence farming households that possess land documents, with most crop farmers operating at the medium level of crop commercialization. The possession of land documents—such as title deeds, certificates of occupancy, right of occupancy, rental contracts, and registered leases, along with the right to sell – significantly enhances crop commercialization among farmers in Nigeria. The empirical evidence indicates that the majority of Nigerian farming households hold legally recognized land documents. Moreover, possessing these documents positively impacts crop commercialization. To fully unlock the potential of Nigerian farming households, it is crucial to support and promote land document ownership. Improving food production and increasing commercialization will ultimately help address the food demand-supply gap in the country.
The positive impact of land document ownership on crop commercialization among farming households is well-established. The government should ensure effective implementation of the Nigerian Land Use Act of 1978, focusing on making land documentation more accessible for farming households.
Additionally, landowners with idle land should be encouraged to grant access to land seekers for agricultural purposes through documented transactions. This will not only enhance agricultural production but also contribute to a higher level of commercialization, ultimately unlocking the full potential of Nigerian farming households.