Poverty alleviation in fishing communities affected by oil production in Ghana: Does income diversification matter?

Abstract The production of oil on a commercial scale has led to a ban on fishing in areas close to oilfields in Ghana. This paper uses econometric analysis to examine the effect of the fishing ban on the livelihoods of rural fishing households in offshore oilfields. It contributes to environmental and economic geography by empirically testing how spatial governance of natural resources (marine resource exclusions due to oil extraction) reshapes local livelihoods and exacerbates poverty. We examined poverty status and income diversification measures as key indicators of livelihood. The findings revealed a negative association between poverty status and the degree of income diversification, suggesting a high prevalence of poverty within undiversified fishing households. Socioeconomic and environmental factors, including the number of extension visits, savings, assets, access to credit and a fishing ban (restrictions), have a positive and significant influence on income diversification. We recommend policy interventions aimed at raising awareness and developing skills that encourage participation in multiple income‐generating activities as a potential means of helping fishermen displaced by oil production. These policies are important for reducing poverty in rural fishing communities and preventing potential conflicts arising from changes in the use of common resources.