Economic valuation of the use of irrigation water in rice production in the Hadejia Valley Irrigation Scheme (HVIS), Jigawa State, Nigeria

Abstract

Water is a vital resource increasingly threatened by population growth and climate change. As the largest consumer of water, irrigation agriculture often uses this resource inefficiently. Accurate valuation and pricing of irrigation water are essential for promoting its efficient use. This study employed the residual value method (RVM) to assess the economic value of irrigation water for sustainable food production in the Hadejia Valley Irrigation Scheme (HVIS), Jigawa State, Nigeria. A multistage sampling technique was used to select 244 rice farmers, and primary data were collected through structured questionnaires. The economic value of irrigation water was estimated at ₦228 ($ 0.76) per cubic meter, while its technical productivity among rice farmers under HVIS was 0.79 kg m^-³. Findings revealed that the price currently paid by farmers is significantly lower than the water’s economic value. This discrepancy stems from a flat-rate pricing system based on cultivated area, which overlooks actual water usage. The study recommends adopting volumetric pricing, using the residual economic value as a reference point, while ensuring affordability. To support sustainable irrigation practices, pricing should remain below the residual value to preserve farmer profitability.