IMPACT OF OIL PALM CULTIVATION ON INCOME AND EMPLOYMENT IN RURAL COMMUNITIES OF DELTA CENTRAL, NIGERIA

Abstract

This study was conducted to assess the impact of oil palm cultivation on income and employment generation in rural communities of Delta Central, Delta State, Nigeria. A total of 200 respondents participated in the study. Both descriptive and inferential statistics were used to analyze the data collected. The mean age of oil palm producers in the study area was 48 years. Most of the respondents (73.0%) were male, and the majority (55.0%) were married. The average income of the farmers before engaging in oil palm production was ₦2,859,500.00, while the income increased to ₦3,641,520.00 after engaging in oil palm production. The results indicated a significant difference (p<0.05) in income levels before and after oil palm production. Similarly, there was a significant difference (p<0.05) in the rate of employment generation before and after oil palm cultivation. Among the challenges identified, insufficient funds ranked highest. Conversely, education was ranked as the most effective strategy for improving the socio-economic outcomes of oil palm cultivation. Further analysis showed that: Educational level had a significant influence on oil palm cultivation (t = 2.024, p<0.05), Source of finance had a positive and significant influence (t = 4.667, p<0.05), Access to extension services also showed a positive and significant relationship (t = 2.015, p<0.05). Based on these findings, it is recommended that government agencies and development partners invest in scaling up commercial oil palm farming and strengthening value chain linkages. To improve income and employment outcomes, policymakers and agricultural development agencies should prioritize the expansion of oil palm production through enhanced access to finance, training, and processing infrastructure.