Economic analysis of fuelwood production and utilization in Bosso Local Government Area of Niger State

Abstract

The present domestic energy situation in Nigeria has made many families to go back to the use of fuel wood/charcoal owing to high prices or scarcity of kerosene and other alternative cooking fuels. Therefore, this study analysed the economic determinants of quantity demanded and supplied, cost and returns and the cost advantages of fuel wood utilization by consumers to other substitutes in Bosso Local Government Area of Niger State, Nigeria. Data were collected from 50 randomly selected fuel wood (charcoal and firewood) producers from Beji and Garatu communities and 60 randomly selected consumers from Maikunkele, Bosso/Maitumbi, Dutsenkura/Kpakungu communities. Analysis of data was done with the use of descriptive statistics, multiple regression analysis, cost and return analysis. Result shows that 72.2% of the variation in quantity demanded by the fuel wood consumers in the study area was explained by the identified determinants, 94.6% of the variation in the quantity the producers supplied. The average return realized by the charcoal producers per quantity produced in bags /month is N 7800.The average return realized by the firewood producers per quantity produced in Dyna truck/month is N 6600. The average return realized by the firewood producers per quantity produced per pickup truck/month is N 1600. A more comprehensive and increased education and enlightenment campaign against deforestation as well as provision of employment for the teeming youth and alternative cheap, eco-friendly energy sources were recommended.