Growth Trends and Sources of Output Growth for Oil Palm and Groundnut Production in Nigeria (1961-2007)

This research was conducted to study growth trends and sources of output growth in Nigeria with a focus on oil palm and groundnut production from 1961-2007. The period was delineated into the following sub periods, to take into account various policy regimes: 1961-1969, 1970- 1985, 1986-1993 and 1994-2007. Objectives of the study were to estimate growth rates of oil palm and groundnut output, yield, harvested area and determine their sources of output growth. Data used for the study was obtained from FAOSTAT and covered area (hectare), yield (hg ha-1), output (tonnes), the Log-linear regression model and Decomposition analysis were employed to determine the growth rates and sources of output growth, respectively. The findings showed that growth rate for groundnut output, yield and harvested area were increasing overtime except for the 1970-1985 period, where harvested area and output decreased and the 1961-1969 periods in which yield and output also decreased. The growth rate for oil palm harvested area and output for the1961-1969 decreased while the other sub periods had positive growth rates, there was no growth in yield for the 1961-1969, 1986-1993 and 1994-2007 periods. The main source of output growth was through expansion of area under cultivation for both crops. Policy implications focused on increasing productivity of land, labour and capital while encouraging the processing of groundnut and oil palm into a variety of products to improve their value and also enhance their industrial application so that farmers get a better return on their efforts to encourage further cultivation.