Economic and Ecological Consequences of Charcoal Production in Oyo State, Nigeria

Abstract

The study was carried out to evaluate the economic and ecological consequences of charcoal production in Oyo State, Nigeria. Fifty production sites from five Local Government Areas known for charcoal production selected through a multistage sampling procedure were used for the study. Tree enumeration was also carried out in forests around selected production sites to ascertain the impact of the charcoal enterprise on the populations of tree species preferred for charcoal making. The average cost of producing a bag of charcoal was N235.71 (about US$1.60) while it was sold at an average price of N464.29 (about US$3.00). Both production and sales were on the increase for the three-year period of the study with 87 per cent, 89 per cent and 97 per cent of the total production sold for 2005, 2006 and 2007 respectively. Rate of Return on Investment (RORI) was 71.12, 76.22 and 90.10; for 2005, 2006 and 2007 respectively. Mean change indices computed for each of the species preferred for charcoal making reveal that Vitellaria paradoxum is the least depleted (39%) followed by Terminalia superba (40%), Nauclea diderrichii and Hellea ciliata (42% each), Afzelia bipindensis and Afzelia africana (45% each), and Anogeissus leiocarpus (47%). Although, charcoal making in the study area is profitable, the current practice is unsustainable. Sound policies and appropriate regulatory laws are suggested to ensure the sustainability of the enterprise. [ABSTRACT FROM AUTHOR]