Economic Assessment of OilPalm Processing in Nigeria and Benin Rep.

The search for the strategies to develop West African economy finds undermined natural resource endowment syndrome. Oil palm is among the long neglected natural resources in Nigeria and Benin. The countries are endowed with rich material and human resources paramount in developing oil palm industry. This work shows the profitability of oil palm processing and the actual production situations. It revealed factors constraining the development of the industry and documents the production advantages available for processors. The viability and underlying potentials of the industry to the development of the economies were unveiled through estimated technical efficiency, profitability and labor-use. Synergies among stakeholders towards intensifying investments on this lucrative industry and policies to enhance bulky supply of FFB; checkmate the role of middle men in the FFB supply chain and; encourage increasing participation of women for enhanced technical efficiency are advocated. Such policies should gear towards provision of cheaper energy consuming mechanical devices for sterilization of palm nuts and decantation of crude palm oil.