The impact of the distribution and utilization of oil palm on the socio economic development in oruk anam local government area of akwa ibom state

Project Abstract

The impact of the distribution and utilization of oil palm on the socio-economic development in Oruk Anam Local Government Area of Akwa Ibom State was investigated in this study. Oil palm is a vital crop with multiple uses including the production of palm oil, palm kernel oil, and other by-products. The study aimed to assess the distribution patterns of oil palm plantations, the level of utilization of oil palm products, and how these factors influence the socio-economic development of the local community. A mixed-methods approach was employed, combining both quantitative and qualitative data collection techniques. A structured questionnaire was administered to farmers and other stakeholders involved in the oil palm industry to gather quantitative data on the distribution and utilization of oil palm. In addition, key informant interviews and focus group discussions were conducted to obtain qualitative insights into the socio-economic impact of oil palm in the study area. The results revealed that oil palm plantations were widely distributed across Oruk Anam Local Government Area, with a significant number of households involved in oil palm cultivation. The utilization of oil palm products was also found to be high, with palm oil being the most commonly produced and traded product. The study further identified various socio-economic benefits derived from oil palm cultivation, including income generation, employment opportunities, and improved standards of living for the local population. However, the study also highlighted some challenges faced by oil palm farmers in the study area, such as inadequate access to credit facilities, fluctuating market prices, and limited technical knowledge on modern oil palm farming practices. These challenges were found to hinder the full realization of the socio-economic potential of the oil palm industry in Oruk Anam Local Government Area. In conclusion, the distribution and utilization of oil palm have a significant impact on the socio-economic development of Oruk Anam Local Government Area. To maximize the benefits of the oil palm industry, there is a need for targeted interventions to address the identified challenges and improve the overall efficiency and productivity of oil palm cultivation in the study area.

Project Overview

<p> </p><p><b>INTRODUCTION</b></p><p><b>1.1 &nbsp; &nbsp; &nbsp;</b><b>Background of the study</b></p><p>Nigeria<br>ranked sixth among the poorest countries in the world with over 70% of the<br>population living below poverty line in 2007 (Central Intelligence Agency,<br>2012) while 46% lived below $1.25 daily in 2010 (World Bank, 2014).<br>Okonjo-Iweala (2014) noted that Nigeria is one of the five countries in which<br>two-thirds of the world’s extreme poor are concentrated; the others are India,<br>China, Bangladesh, and the Democratic Republic of Congo. The poverty in Nigeria<br>is largely rural (poverties.org, 2013) where the effects of macro-economic<br>shocks in terms of fiscal adjustment and monetary policy reforms are felt much<br>more. Thus, whereas poverty is expected to decline by 40% in the urban centers,<br>it would increase by 7% in rural areas which inhabit almost 80% of the population<br>living below the poverty line and depend on agriculture for food and income<br>(International Fund for Agricultural Development, IFAD, 2009). Consistent<br>economic growth and prosperity are central to poverty alleviation and the oil<br>palm industry has been identified as one effective avenue for rural income<br>generation, especially among the women who process and sell palm oil in local<br>and national markets, food security and economic stability (Partnership<br>Initiatives in the Niger Delta, PIND, 2011).</p><p>A huge<br>percentage of farmers in Nigeria are small scale farmers. Small-scale farming<br>involves growing crops, at least in part, to be used by an individual family,<br>with farming being a significant source of their livelihoods (Lininger,<br>nd.)Small Scale farming is usually characterized by intensive labour and in<br>most cases, animal traction, limited use of agrochemicals and supply to the<br>local or surrounding markets. Unlike large-scale commercial agriculture, it<br>plays a dual role of being a source of household food security as well as<br>income from sale of surplus. Although some claim small-scale agriculture is<br>less efficient in output as compared to commercial agriculture (Kirsten &amp;<br>Van Zyl, 1998), it is ecologically friendly in that less land is cleared for cultivation,<br>there are less emissions due to less use of fuel-driven machinery and the<br>market is usually local implying less carbon miles (Kutya, 2012).</p><p>The<br>oil palm (Elaeisguineensis) is<br>the dominant source of vegetable oil consumed in the world (USDA, 2006), in the<br>form of palmoil (mesocarp oil) and kernel oil (seed oil). Palm oil is the main<br>edible vegetable oil produced and consumed in Nigeria where the oil palm tree<br>features regularly in the natural vegetation of the lowland humid to sub-humid<br>areas in a belt that covers almost 24 million hectares (ha) (Opeke, 2003).<br>Dispersed smallholders harvest fruits from the wild/semi-wild palms and process<br>them to produce 80% of the palm oil output and through which Nigeria accounted<br>for 43% of global palm oil production up till the mid-1960s. The performance<br>has declined such that the annual output at 850,000 metric tonnes (MT) leaves<br>an overall supply gap of 0.5 million MT currently met through imports (Omoti,<br>2001).</p><p>Palm<br>oil production starts with the oil palm trees whose cultivation has formed the<br>farming culture and a means of livelihood for millions of families in the rural<br>landscape. Palm oil production is a major vocation which has played significant<br>roles in poverty alleviation in some countries, especially in Malaysia and<br>Indonesia (BusinessDay, 2013). The huge potentials for generating rural income<br>and providing employment have enabled the poor to be part of the solution to<br>the scourge of widespread poverty.AkwaIbom State which has been listed among<br>civil service state in Nigeria is also one of the 24 palm oil-producing states.<br>This implies that the potentials in palm oil production to transform the lives<br>of the small-scale farmers in the rural sector of AkwaIbomState need to be<br>harnessed. This study was carried out to evaluate the impact of the distribution<br>and utilization of oil palm industry to the socio-economic development of the<br>rural inhabitants of Oruk Anam LGA.</p><p><b>1.2 STATEMENT OF THE PROBLEM</b></p><p>Price<br>of palm oil is largely affected by production or output of the palm oil within<br>the year and general inflation (Fly, 2003). Past policies have aimed at<br>increasing agricultural productivity through increased investment in agronomic<br>and production system research. The discovery of petroleum in the late 50’s and<br>its exploitation and export in the early 70’s changed the economic scenario in<br>favour of oil as the chief revenue earner for the nation. The global economic<br>recession of the mid-80’s however exposed the inherent structural weakness of<br>import substitution as a strategy for industrialization. With the coming of the<br>Structural Adjustment Programme (SAP) in 1986 and the concomitant devaluation<br>of the naira, Nigeria manufacturers found it’s difficult to import the needed<br>raw materials and machinery to produced profitable policy formulation has<br>failed to take cognizance of the fact that production and marking constitute a<br>continuum and that the absence of the development in one retards progress in<br>the other (Olayemi, 1972).It in view of this that the researcher intends to<br>investigate the impact of the distribution and utilization of oil palm on the<br>socio-economic development in Oruk Anam LGA.</p><p><b>1.3 &nbsp; &nbsp; <br></b><b>OBJECTIVE<br>OF THE STUDY</b></p><p>The<br>main objective of the study is to investigate the impact of distribution and<br>utilization of oil palm on the socio-economic development of Oruk Anam LGA ofAkwaIbom State. But to aid the completion<br>of the study, specific objective includes:</p><p>i) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To investigate the impact of oil palm<br>distribution on the socio-economic development of Oruk Anam</p><p>ii) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To ascertain the role of oil palm<br>distribution on the socio-economic development of Nigeria.</p><p>iii) &nbsp; &nbsp; &nbsp; &nbsp; <br>To evaluate the benefit of oil palm<br>production on the economic development of Nigeria</p><p>iv) &nbsp; &nbsp; &nbsp; &nbsp;<br>To ascertain the role of government in<br>aiding effective production and distribution of oil palm in Oruk Anam LGA</p><p><b>1.4 &nbsp; &nbsp; <br></b><b>RESEARCH<br>HYPOTHESES</b></p><p>To<br>aid the completion of the study, the following research hypotheses were<br>formulated by the researcher</p><p><b>H0:</b>oil<br>palm distribution does not play any significant role on the socio-economic<br>development of Nigeria.</p><p><b>H1:</b>oil<br>palm distribution does play a significant role on the socio-economic<br>development of Nigeria.</p><p><b>H02: </b>government<br>does not play any role in aiding effective production and distribution of oil<br>palm in Oruk Anam LGA.</p><p><b>H2:</b>government<br>does play a significant role in aiding effective production and distribution of<br>oil palm in Oruk Anam LGA</p><p><b>1.5 &nbsp; &nbsp; <br></b><b>SIGNIFICANCE<br>OF THE STUDY</b></p><p>It<br>is believed that at the completion of the study, the findings will be of great<br>importance to the rural farmers as the study seek to help them explore the<br>benefit of oil palm production and distribution to the farmers, government,<br>consumers and the general public. The study will also be of great importance to<br>the government as the study seek to explore tha untapped potentials of oil palm<br>production in Oruk Anam LGA and its contribution to economic growth. The study<br>will also be of great importance to researcher who wants to embark on research<br>on similar topic as the findings will serve as a reference point to them.<br>Finally the study will be of great importance to the academia and the general<br>public as the study will add to the pool of knowledge.</p><p><b>1.6 &nbsp; &nbsp; <br></b><b>SCOPE<br>AND LIMITATION OF THE STUDY</b></p><p>The<br>scope of the study covers the impact of the distribution and utilization of oil<br>palm on the socio-economic development of Oruk Anam LGA of AkwaIbom state. In<br>the cause of the study, there were some factors which limited the scope of the<br>study</p><p><b>a) AVAILABILITY OF RESEARCH MATERIAL:</b><br>The research material available to the researcher is insufficient, thereby<br>limiting the study &nbsp; &nbsp; &nbsp; </p><p><b>b) TIME:</b><br>The time frame allocated to the study does not enhance wider coverage as the<br>researcher has to combine other academic activities and examinations with the<br>study.</p><p><b>c) Organizational privacy:</b><br>Limited Access to the selected auditing firm makes it difficult to get all the<br>necessary and required information concerning the activities</p><p><b>1.7 DEFINITION OF TERMS</b></p><p><b>Oil palm</b></p><p>Palm<br>oil is naturally reddish in color because of a high beta-carotene content.<br>It is not to be confused with <a target="_blank" rel="nofollow" href="https://en.wikipedia.org/wiki/Palm_kernel_oil">palm<br>kernel oil</a>&nbsp;derived from the kernel of<br>the same fruit, or <a target="_blank" rel="nofollow" href="https://en.wikipedia.org/wiki/Coconut_oil">coconut<br>oil</a>&nbsp;derived<br>from the kernel of the coconut palm</p><p><b>Economic development</b></p><p>Economic development is the process<br>by which a nation improves the economic,<br>political, and social well-being of its people. Whereas economic development is a policy<br>intervention endeavor with aims of economic and<br>social well-being of people,economic growth<br>is a phenomenon of market productivity and rise in GDP</p><p><b>Distribution</b></p><p>Distribution (or place) is one of<br>the four elements of the marketing mix. Distribution is the process of making a product or service<br>available for the consumer or business user that needs it. This can be done<br>directly by the producer or service provider, or using indirect channels with<br>intermediaries.</p><p><b>1.8 &nbsp; &nbsp; <br></b><b>ORGANIZATION<br>OF THE STUDY</b></p><p>This<br>research work is organized in five chapters, for easy understanding, as follows</p><p>Chapter<br>one is concern with the introduction, which consist of the (overview, of the<br>study), statement of problem, objectives of the study, research question,<br>significance or the study, research methodology, definition of terms and<br>historical background of the study. Chapter two highlight the theoretical<br>framework on which the study its based, thus the review of related literature.<br>Chapter three deals on the research design and methodology adopted in the<br>study. Chapter four concentrate on the data collection and analysis and<br>presentation of finding. Chapter five<br>gives summary, conclusion, and recommendations made of the study.</p> <br><p></p>