ECONOMIC IMPLICATIONS AND DETERMINANTS OF PALM OIL PRODUCTION IN ILE-OLUJI, ONDO STATE, NIGERIA

Palm oil production remains a critical component of Nigeria’s agricultural sector due to its contributions to food security, employment generation, rural livelihoods, and industrial raw materials. Despite its economic potential, palm oil production in Nigeria is largely dominated by smallholder farmers operating with traditional production and processing methods, resulting in low productivity and limited competitiveness. This study examined the economic implications and determinants of palm oil production in Ile-Oluji Local Government Area of Ondo State, Nigeria. Primary data were collected from 50 respondents using structured questionnaires, interviews, and field observations. Descriptive statistics and linear regression analysis were employed to analyze socio-economic characteristics, production constraints, and factors influencing revenue from palm oil production. The results reveal that sex, age, education level, farming experience, household size, and farm size significantly influence palm oil revenue. The regression model explained 86.84% of the variation in respondents’ revenue, indicating strong explanatory power. While female participation in palm oil production was relatively high, revenue was negatively affected due to underlying socio-economic constraints such as limited access to credit, land, extension services, and modern processing technologies. Major challenges identified include inadequate transportation and storage facilities, poor access to credit, weak government support, limited extension services, price fluctuations, and inadequate processing infrastructure. The study concludes that improving access to modern processing technologies, strengthening extension services, expanding credit facilities, and addressing infrastructural bottlenecks will significantly enhance productivity and income from palm oil production. Targeted policy interventions aimed at empowering female producers and strengthening human capital development are recommended to improve the sector’s contribution to rural development and national economic growth.