Profitability analysis of smallholder aquaculture farms: the case of Lagos State, Nigeria

Nigeria is the largest (total) fish consumer in Africa and among the highest consumers in the world. The domestic fish production is short of the consumption demand despite the vast potentials in the fishery sector. Harnessing these potentials rightly will help to increase employment and increase food fish production and availability. It is clear given the importance of aquaculture in fish production that efforts must be made to encourage entrepreneurs to go into the business. Many have cast doubts on the profitability of aquaculture production, particularly on a smallholder level. This paper determines the profitability of smallholder aquaculture farmers in Lagos State, Nigeria, with a specific focus on catfish farmers. Eighty catfish farmers were interviewed using random sampling among farmers in fish farm estate in Ikorodu, Lagos. The study used enterprise budgeting, investment and sensitivity analysis to determine the profitability of catfish production in the study area. The study showed that current farmers are having positive cash flow. However, the investment analysis showed that investment in catfish production is not profitable. The enterprise became profitable due to the expansion of the farm enterprise by constructing at least five additional ponds