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

Thesis 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>