Journal of Sustainable Development Vol. 4. No. 1/2

ECONOMIC ANALYSIS OF RAFFIA PALM (Raphia hookeri) IN THE LIVELIHOOD OF RURAL DWELLERS IN OBIO/AKPOR LOCAL GOVERNMENT AREA OF RIVERS STATE, NIGERIA

UNAEZE, H.C., ONU, M.E. AND AGUMAGU, A.C. Department of Agricultural Economics and Extension, Faculty of Agriculture, University of Port Harcourt, Port Harcourt, Rivers State, Nigeria

ABSTRACT

This study was carried out to investigate the economic analysis of raffia palm products on the livelihood of rural dwellers in Obio/Akpor LGA. A purposive sampling technique was used in the selection of 75 respondents. The data obtained were analyzed using percentages and net income analysis. It was found that, majority of the respondents who were engaged in raffia palm business are of middle age bracket (31 – 40) (29.3%) and also of men folk (80%). The women who engaged in this business (20%), sell and assist in carrying the tapped palm wine out of the bush. Also those gainfully employed in the raffia palm business, sell mainly the palm wine (35%). It was found that in spite of the positive effect of raffia palm business, its sourcing impose dangers to those directly involved in the business (drudgery, scarcity of raffia palm, snake bites, inadequate preservative measures, problems of climbing and falling etc.). The introduction of improved palm seedlings with shorter height and good preservative measures should be encouraged extensively. There is therefore need for government and private organization to invest in this raffia palm business, so that rural livelihood in Obio/Akpor Local Government Area of Rivers State, Nigeria will be improved.

Keywords: Economic analysis, Raffia palm, Rural livelihoods

INTRODUCTION

Non-timber (or wood) forest products fermented palm wine is distilled at times to (NTFPs) are products of biological origin obtain local gin called “kaikai” which is also other than wood derived from forest or very important in the traditional, religious, wooded land (Andel, 2000). Today, over 150 social, cultural and economic life of the non-timber forest products are significant as people of developing countries. (Etukudo, commodity in international trade. The total 2003). In Obio/Akpor Local Government value of world trade in NTFP is estimated in Area of Rivers State of Nigeria, this non- the order of US $11 billion; however timber forest product is commonly found statistics are notoriously unreliable for these growing wild in the forest. And the types of products (Caspary et al, 2001). In expansion of their harvesting is unlikely to most developing countries like Nigeria, have any major detrimental effect on the NTFPs are more important forest resources rural livelihood of the people, if carried out than timber. Several million households on a sustainable basis. worldwide depend heavily on NTFP for subsistence and/or income (Dijk, 1999). For Non-timber forest products have long been example, Raffia palm scientifically known as an important component in the livelihood Raphia hookeri and commonly known as strategies of some rural communities. These wine palm and “Ukod” by the Ibiobios have forest products contribute both goods and long been an important component of the services and also one of the sources of cash livelihood strategies of so many rural income to the rural poor (UNEP, 2002). communities (Etukudo, 2003). For example However the collection of harvesting of palm wine, a popular refreshing sweet these non-timber forest products from the sugary drink especially when fresh, is natural forest is difficult (Caspary et. al. important in the social, cultural and 2001). It is even more difficult to quantify economic nexus of the people. Also the national trade, which may be very

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substantial to globalization, because a very NON-TIMBER FOREST PRODUCTS AND important international traded NTFP rarely RURAL LIVELIHOOD appears in statistics, but its production has serious local and national development During the last decade people have become consequences. (Vallenbury et. al. 1997). increasingly aware of the important role that non-timber forest products, can play in Furthermore, it is common to find improving the rural livelihood. However unemployed villagers stealing these forests various systems of managing and products and effort in stopping these social harvesting non-timber forest products have menaces is very difficult, as government do been shown, to be able to provide people not show keen interest in protecting the living near the forest with their basic needs forest from over-exploitation. Even though such as firewood, valuable raw materials, many studies have been undertaken to foods and water (UN 97). The forest can also appraise non-timber forest products in help to improve crop yields, income and Nigeria, very few have taken into account utilization of available labour, in addition to the effects of raffia palm in the livelihood of maintaining the environment in good rural dwellers, as a result, there is condition (FAO, 1995). Raffia palm inadequate research information and scientifically known as Raphia hookeri and empirical guide for future programmes commonly called wine palm is a NTFP. It is wanting to address the effects of raffia palm found commonly around swampy areas of in the livelihood of rural dwellers. More so, forest zone. Its area of production extends the effects of raffia palm as one of the non- from Guinea to Gabon and Bioko. It is also timber forest products forms one of the found in fresh water swamp, and sometimes main concerns of important analysis of the cultivated (Keay, 1989). It uses ranges from development process and this paper is the production of palm wine, kaikai from the aimed at empirically addressing this issue of fermented palm wine, bamboo stick used as major development significance. a building material in thatched and temporary houses (Etukudo, 2003). The broad objective is to assess the effects of raffia palm in the livelihood of rural People need to recognize that unless dwellers in Obio/Akpor Local Government developing countries are helped to realize Area of Rivers State, Nigeria. The specific the importance of the non-timber forest objectives are to: resources in terms of income and 1. Determine the socio-economic employment generation, the problem of characteristics of brain drain, political instability, mass harvesters/processors of raffia unemployment and other social vices will palm products in the study area. not be solved completely (Max, 2002). 2. Identify various products i.e. NTFPs are more important forest resources natural and artificial from the than timber. Several million households raffia palm tree. worldwide depend heavily on NTFP 3. Estimate the revenue from each subsistence and income, Andel (2000). of the raffia palm products in However FAO estimated that some 80 the study area. percent of the population of the developing 4. Determine the employment world use NTFP for health and nutritional opportunities in raffia palm needs and singles out women from poor business in the study area. households as being particularly reliant on 5. Identify problems encountered NTFP for household use and income. (Dijk, among the raffia palm 1999). harvesters in the study area. 6. Determine extension contact in the study area.

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METHODOLOGY SPECIFICATION OF MODELS This study was carried out in Obio/Akpor Local Government Area of Rivers State. It GM = T I – TVC was carried out of the former Port Harcourt NI = GM - TFC City Local Government on the southern end. The population of the people in the area Where: according to the figures for the 1991 census GM = Gross Margin is projected at 328,643 and it covers an area TI = Total Income of the of about 392 square kilometers respondents (Obio/Akpor, Handbook, 1989). Because of TVC = Total Variable cost the consistent rainfall, which commences of the respondents. mid-march and terminates in mid- TFC = Total Fixed Cost of November annually, the local government the respondents. has a large expanse of rainforest, which NI = Net income per favours forest trees like raffia palm, timber annum of the respondent. trees. The people of this area are predominantly farmers. Total Revenue = ΣIPW + ΣILG + ΣIRR + ΣIRP + ΣIRT Obio/Akpor Local Government Area is made up of three clans, which include Evo, Where: Apara and Akpor. Five communities were TI = Total income of the purposively selected from each clan because respondents. raffia palm tree is commonly found in the ΣIPW = Sum of income area. Evo clan, Rumuagholu, Eliozu, derived from palm wine sales Elimgbu, Rumuodara and Rumunduru were ΣILG = Sum of income selected out of 22 communities. In Apara derived from local gin (kaikai) sales. clan the communities selected include ΣIRR = Sum of income Rukpoku, Eneka, Nkpolu-Rumuigbo, derived from raffia ropes sales. Rumuomoi and Rumuepirikom out of 10 ΣIRP = Sum of income communities while in Akpor clan derived from sales of raffia poles Rumuekini, Rumuosi, Alakahia, Ogbogoro ΣIRT = Sum of income and Rumuokparali were selected out of 10 derived from the sales of raffia thatch communities. Five respondents were leaves. randomly selected from each community giving 25 respondents in each clan. A total TC = TFC + TVC of 75 respondents, were selected from the study area. Where TC = Total Cost of incurred by the respondent per annum. Data used for the study was generated from TFC = Total Fixed Cost both primary and secondary sources. incurred by the respondents per annum. Primary data were obtained using TVC = Total Variable Cost questionnaire, oral interviews and direct incurred by the respondents per annum. observation while secondary data were collected mainly from available journals Where TFC = Sum of Cost of raffia palm (published and unpublished materials) of trees + Sum of Cost of distilling local gin. relevance to the study. Data collected during TVC = Sum of Cost of Tapping the study were analyzed using descriptive Raffia palm. statistics and net income analysis. Objectives 1, 2, 4, and 6 were analyzed using descriptive statistics and objective three was analyzed using net income analysis.

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RESULTS AND DISCUSSION shows the distribution of various raffia palm products in the study area. Table 4 shows The socio-economic characteristics that palm wine is the major raffia palm considered in this study include age, sex, product in the study area. Followed by marital status, educational qualification and distilled wine locally called “kaikai” 27.1% household size. Table 1 shows the age, and the least products is poles with 3.5%. gender, marital status educational From this table, palm wine and kaikai are qualification and household size of the the two major products in the raffia palm respondents in the study area. Analysis business in the study area. revealed that 29.3% of the respondents fall in the age range of 31 – 40 years of age, Result from the net income analysis in Table while only 1.3% falls in the range of 11 – 20 5 shows that raffia palm business is years. This shows that raffia palm business profitable because the value of the net is mostly carried out by the middle-aged income was positive. The result also men. This could mean that lots of skills are revealed that the highest revenue from the needed in the business. raffia palm business in the study area was realized from palm wine with 96% of the The gender distribution as shown in the total revenue, while the revenue from sales table indicated that 80% of the total sampled of ropes and poles was 0.5% each. Cost of population was men, while only 20% were raffia palm products as shown in the result women. This means that majority of the shows that cost of tapping the palm wine people who engage in this business were was the highest with 66.7% of the total cost mostly males. Table 1 also revealed the while cost of refining the local gin (kaikai) marital status of the respondents. It was was the least, with 0.3%. indicated that 66.7% of the respondents were married, while 2.6% were single. This All the respondents sampled stated strongly indicates that this business is mostly that they have no extension contact. Rural dominated by married men and women. dwellers encounter some problems while The level of educational qualification as tapping palm wine from the forest. Some shown in the analysis indicated that 78.7% complained that they encountered more of the respondents have First School than one problem, while tapping palm wine. Leaving Certificate (FSLC) while only 2.7% The various problems they encountered have West African School Certificate/Senior resulted to multiple responses recorded in Secondary Certificate Examination the study area. The result of problems (WASC/SSCE). It is implied that majority of encountered while tapping palm wine from the respondents are not well educated. the forest is presented in Table 6. The major However, unemployment problem in the problem encountered by most respondents country, has forced some unemployed is the scarcity of raffia palm tree due to secondary school holders to engage in the urbanization. This is represented by 30.6 business. The distribution of respondents percent, followed by problems of climbing according to their household size; From the the tree due the old age (18.0%), while 17 table above, 74.7% of the respondents, have percent represents those who complained of household size of 1 – 5, while only 4.0% problems of falling from the raffia palm tree have household size of 11 – 15 persons. especially during rainy seasons. The least are those who complained of snakes and Table 2 shows that among the female insect bites and they are represented by 4.5 respondents who were involved in the raffia percent respectively. palm business, 60% were engaged in the sales of the palm wine, while 40% assisted in SUMMARY AND CONCLUSION carrying out the palm wine from the bush or forest. These women are mostly from poor The study revealed that the age range household as stated by Dijik, (1999). Table 3 between 31 – 40 years is actively involved in

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the raffia palm business with 29.3% with Therefore, it is recommended that both the majority of them being men folk (80%). The government and private organization women are mostly involved in the carrying should invest in this business to enhance of palm wine from the bush and in the sales rural development, which will have a of the product. The result also shows that positive effect in the livelihood of the rural 66.7% of the respondents were married, dwellers in the area. Government while only 2.6% were singles respondents. involvement should be in area of assisting The result revealed that the raffia palm raffia palm farmers with micro credit facility business was dominated by the respondents which will enable them purchase the that acquired primary school education, necessary facilities that will be used for 78.7%. Palm wine and local gin (kaikai) were processing and storage of their products. If the major products having 40% and 24% this is done it will increase the business respectively among others. It was also capacity and production. In addition, there revealed in the study that more persons will be job creation in the area. Government were involved in producing and sales of should also ensure adequate protection and palm wine and this gives rise to multiple preservation of the forest and its products responses recorded. Result from the study from over-exploitation. Rural feeder roads shows that scarcity of raffia palm trees and should be constructed to ease transportation problem of climbing the trees especially problem of the products to the selling during rainy season are the two major points. Research institutes should make problems of raffia palm business in the available raffia palm seedlings with short study. Finally, the result from the height to address the problem of climbing to profitability test was positive, which is an tap the wine. Extension officers should indication that raffia palm business in the extend their services to raffia palm farmers study area is profitable. by advising them on the benefits of establishment of raffia palm plantation RECOMMENDATIONS using improved raffia palm seedlings. Finally farmers are encouraged to diversify The result from the study shows that raffia in raffia palm business. palm business enterprise is a profitable one.

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Table 1: Distribution of respondents according to socio-economic characteristics Age Frequency Percentage 11 – 20 1 1.33 21 – 30 10 13.3 31 – 40 22 29.3 41 – 50 18 24.0 51 – 60 20 26.7 61 – 70 4 5.3 Gender Female 15 20 Male 60 80 Marital status Married 50 66.7 Single 2 2.6 Widow 14 18.7 Widower 4 5.3 Separated - - Divorced 5 6.7 Level of educational qualification First school leaving certificate 59 78.7 WAEC/SSCE 2 2.7 OND/NCE - - First degree - - Higher degree - - Non formal education 14 18.7 Household size 1 – 5 56 74.7 6 – 10 16 21.3 11 and above 3 4.0 Source: Field Survey, 2006

Table 2: Distribution of female gender, according to the role performed in the raffia palm business Type of Role Frequency Percentage Sales of palm wine 15 60 Carrying the palm wine 10 40 From the bush/forest 25 100 Source: Field Survey, 2006 Multiply responses recorded. Table 3: Distribution of various raffia products natural and artificial in the study area Raffia palm products (Natural Frequency Percentage & artificial Palm wine only 35 41.2 Kaikai (artificial) 23 27.1 Leaflets (thatching) 10 11.8 Poles 14 16.5 Tietie (Ropes) 3 3.5 Total multiple responses 85 100 recorded Source: Survey 2006, Multiple Responses.

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Table 4: Distribution of respondents according to those gainfully employed in the raffia palm business Raffia palm business Frequency Percentage Palm wine tapping 25 25 Palm wine processors to kaikai 15 15 Selling of palm wine 35 37 Selling of kaikai 10 10 Thatching 6 6 Ropes 4 4 Poles 5 5 100 100 Source: Field Survey 2006. Multiply responses recorded

Table 5: Estimated Revenue from raffia palm in Naira per year Products Price in N Percentage Palm wine 20,321,280 96 Local gin kaikai 423,360 2 Thatching 211,680 1 Poles 105,840 0.5 Roles 105,840 0.5 Total 21,168,000 100 Estimated cost of palm product Cost in N Type Cost of tapping 9,004,500 66.7% Cost of raffia palm tree 4,455,000 33.3% Cost of refining local gin 40,500 0.3% Total cost 13,500,000 100 Source: Field Survey, 2006. Net Income Analysis of Raffia Palm products. Gross Margin= 21,168,000:00 - 9,004,500:00 12,162,500:00 Net Income = Gross Margin - Total Fixed Cost = 12,163,500:00 - 4,495,500:00 = 7,668,000.00 = 7,668,000.00 per annum.

Table 6: Distribution of respondents according to problems encountered in the raffia palm business Problems encountered in the raffia palm business Frequency Percentage Drudgery (working through long distance to convey the palm wine 15 13.5 from the forest/bust Snake bites 5 4.5 Insect bites 5 4.5 Scarcity of raffia palm tree due to urbanization 34 30.6 Problems of climbing the tree due to old age 20 18.0 Fear of spoilage if not sold. 13 11.7 Problems of falling from the raffia palm tree, especially rainy seasons. 19 17.1 Total 111 100.0 SOURCE: field Survey 2006 Multiple responses recorded

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