Economics of Cage Aquaculture Operations in Oyan Reservoir, Ogun State, Nigeria

Background and Objective: Cage culture contributions to domestic fish supply in Nigeria are abysmally low currently due to the low level of adoption. An in-depth study of the economic indices of cage aquaculture is key to improving its adoption and consequently enhancing its contribution to food fish security in Nigeria. Hence, the economic viability of cage culture operations at the Oyan Reservoir was investigated. Materials and Methods: Stratified sampling technique was used to administer structured questionnaires to the three cage culture operators in the Oyan Reservoir. Information on the socioeconomic characteristics of cage operators and production indices, income and expenditure was exclusively collected from the producers (A, B and C). Data generated were analyzed using descriptive statistics, farm budgetary analysis, profit function and multiple regression analysis at a 95% confidence limit. Results: The cage fish operators (A, B and C) were male (100%) in the productive age (31-50 years). Years of cage culture operator experience (0.792) as well as production area (0.304), had the highest impact on fish output. Investor A supplies an average of 50,000 kg of Oreochromis niloticusannually with revenue of ₦19,125,000 while investments B and C had annual production range and revenues of 101,000-150,000 kg, ₦124,015,000 and 51,000-100,000 kg, ₦62,641,666, respectively. Investors A, B and C recorded negative net present values of -₦6,400,132.727, -₦213,540, 807.3 and -₦51,004,361.5, respectively. Also, the rates of returns on each investment and profit index were 22.2 and 0.79%, 6.09 and 0.84%, 8.59 and 0.63% for A, B and C, respectively. Conclusion: It is therefore, safe to conclude that cage culture operators in Oyan are yet to recover the initial investment. Cage fish farming is capital intensive with probable 4, 16 and 12 years for investors A, B and C, respectively to generate returns on investment.