Ishaq Adeyemi OLAITAN

Oil palm seedling production is a critical component of Nigeria’s agricultural economy, particularly in Edo State, where it supports rural livelihoods and contributes to national income. This study evaluated the economics of oil palm seedling production in Ovia North-East Local Government Area, Edo State, Nigeria. Specifically, it examined the socio-economic characteristics of producers, estimated production costs and returns, identified factors influencing revenue, and assessed constraints faced by farmers. A multi-stage sampling procedure was employed to select 100 respondents from five oil palm seedling-producing communities. Primary data were collected through structured questionnaires and analyzed using descriptive statistics, budgetary analysis, and multiple regression. Results revealed that the majority of producers were male (61%), middle-aged (50% aged 21–40 years), and educated (94% had at least primary education). The average household size was 5 members, and most farmers operated small-scale farms (55% cultivated 0.5–1 hectare). Total production cost averaged ₦401,867.27, with land rent (₦109,558.82) and fertilizer (₦55,655.13) as major expenses. The enterprise proved profitable, generating a gross margin of ₦588,325.60 and a return on investment (ROI) of 1.464. Regression analysis indicated that seed cost (r = 4.65, p < 0.001) and fertilizer cost (r = 4.85, p < 0.001) significantly enhanced revenue, explaining 61.5% of variability (R² = 0.615). Key constraints included inadequate finance (100% of respondents), high transportation costs (99%), irregular input supply (99%), labor shortages (98%), and land tenure issues (99%).