Analysis of Determinants of Growth in the Oil Palm Industry in Niger Delta of Nigeria; A Case Study of Bayelsa State

Abstract

The study was conducted to examine the determinants of growth of oil palm industry in Nigeria’s Niger Delta area with a particular reference to Bayelsa State. A total of 63 respondents were interviewed. Questionnaire were categorizes into A and B. Category A were made up of management staff of Bayelsa palm while category B were made up of ordinary farmers. Simple percentage, tables and ordinary least square (OLS) regression analysis were used as analytical test. Result on analysis showed that 85% of those who were involved in this business were male, only 14% were female. The age range of 26 – 60 years is the main participant. The business only utilizes mainly secondary school leavers. About 81% of the respondent use personal fund to run the business (equity financing) .While non-equity i.e. those who borrowed money to run the business were only 19%. This is because farmers have no asses to bank loan. Although, the findings reveal that there is high rate of capital recovery; econometric result reveal that that borrowed fund, income and owners equity were significant at 5% and 10% respectively. It means that net income, owner’s equity and borrowed funds were critical in the growth of oil palm industry, even though crude implement and drudgery were seen to major problems.

Keywords: Determinants, Growth, Oil Palm Industry, Bayelsa State, Nigeria