ABSTRACT
The study examined the trends and levels of production recorded in palm oil output in Nigeria bearing in mind the different research breakthroughs by the Nigerian Institute for Oil Palm Research (NIFOR). The study was therefore designed to provide an analysis on the performance of palm oil production and determine the growth rate in Nigeria from 1979-2014. Secondary data were used for the study. The data were analyzed using descriptive statistics and multiple regressions analysis. The result showed that exchanged rate of the Nigerian Naira had a significant positive relationship with world output of palm oil such that N1 million increase in exchange rate will result in N1.69 million increase in world output of the commodity. Also further findings showed that the co-efficient of producer prices was negative, implying that as the producer prices increased, palm oil production output decreased. It appears that the production and export of agricultural export commodities have been improving especially since the introduction of the Structural Adjustment Programme (SAP) in 1986, which seemed to have had a positive effect on agricultural exports. Efforts should therefore be made to promote agricultural exports with attention given to oil palm, which has potential in contributing significantly to agricultural exports from Nigeria. |
KEYWORDS: |
Palm oil, export, producer prices, Naira exchange rate, interest rate |
