Oil Palm Production and Economic Development in Nigeria: A Study of Isiala-Ngwa South Local Government Area of Abia State

Abstract

This study examines the profitability of oil palm production and its determinants in Isiala- Ngwa South Local Government Area of Abia State, Nigeria. The qualitative paper, which is quantitative inapproach adopts a two-stage sampling technique for data collection and analysis. Five oil palm-producing communities were purposively selected out of which a random sample of 400 households where chosen for the study. The research instrument was a questionnaire. Out of the 400 copies of the questionnaire administered analysis was basedon 315 that were retrieved. Using profitability analysis and a linear regression model, this study showed that the average profitability ratio of oil palm production in the area was N2.71 but was statistically not significant. The most important endogenous factors determining oil palm production and profitability in the area include number of children, size of land area cultivated, number of employees and output. The study recommends, among other things, the urgent amendment of the provision of the 1978 Land Tenure Act and the allocation of more land area for agricultural purposes especially for oil palm production.