• E. O. OYEDEPO Department of Agricultural Economics and Farm Management Federal University of Agriculture, Abeokuta, Nigeria
  • A. A. ADEKANMBI Department of Agricultural Economics and Farm Management Federal University of Agriculture, Abeokuta, Nigeria
Keywords: Budgetary technique, Nigeria, Ofada rice, Ogun State, production, profitability ratio


The paper undertook an economic analysis of Ofada rice production in five prominent rice growing areas of Ogun State.  A two stage purposive sampling technique was employed to select a total of 120 rice farmers from five local government areas which are major areas known for Ofada rice production in the state. Primary data were collected for the study through structured questionnaire and Focus Group Discussion (FGD) among rice farmers groups in the study area. Analytical tools adopted for the study included frequency, percentages, gross margin analysis and profitability ratios. Results of the analysis showed that majority of Ofada rice producers in the study area are male (73.33%). In terms of age, more than half of the respondents fell within the age range of 41 -50 years (63.33%) these farmers were young and within their active productive lives. Results of the distribution of respondents by annual income in the study area revealed that majority of the respondents (60.83%) obtained an income of between ₦201,000 and ₦400,000.00 per hectare.  However, 22.50% of the respondents obtained an income of less than ₦200,000.00 per hectare. The gross ratio, operating ratio, return per naira invested and profitability index were calculated to be 0.95, 0.80, 1.90 and 1.80 respectively. The gross margin of rice production per hectare was also estimated to be ₦222,020.00. All these indicate overall profitability of the enterprise. However, an average low yield of 2.5 tonnes per hectare was recorded due to constraints encountered during production. Some of the identified constraints in the study area are lack of capital (25.83%), lack of tractor for land clearing (10.83%), lack of good farm roads (16.67%), and inadequate processing and storage facilities (11.67%). It is then recommended that access to adequate capital, mechanical equipment and other incentives through farmers’ cooperatives and government aid for construction of farm roads could help increase rice production in the area and this will in turn help Nigeria to achieve a much desired self-sufficiency in rice production.





Ajani, O. I. Y. 2000. Resource Productivity in Food Crop Farming in the Northern Area of Oyo State, Nigeria. An Unpublished PhD Thesis, Department of Agricultural Economics, University of Ibadan.

Ayodele, O.J. 2016. Economic Analysis of irrigated rice production in Kura Local Government Area Of Kano State, Nigeria. An Unpublished Masters Thesis, Department of Agricultural Economics and Rural Sociology, Ahmadu Bello University, Zaria.

Amaza, P. S., Umeh, J.C., Helsen, J., Adejobi, A.O. 2006. Determinants and measurement of food Insecurity in Nigeria: Empirical Policy Guide paper presented at the International Association of Agricultural Economist Conference, Gold Coast, Australia, Aug 12 – 26 15Pp.

Akpokoje, G., Ogundele, O.O. 2003. The Impact of Rice Production, Consumption and Importation in Nigeria. The Political Economy Perspectives.

Omotesho, O.A., Falola, A., Oshe, A,T., 2012. Effect of Social Capital on Productivity of Rice Farms in Kwara State, Nigeria. Science, Technology and Arts Research Journal 4 (1): 215. Research Gate. 215- 220.

FAO 2001. Food and Agriculture Organization Statistics: Rice Statistics, Rome, Italy.

Frederic, L., Ola, E., Akande, E., Titilola, S.O., Akpokoje, G., Ogundele, O.O. 2003. Imported rice retailing and purchasing Nigeria: A survey, West Africa Rice Development Association (WARD A) 2 Abidjan, Cote d‟Ivoire.

Gyimah – Brempong, K., Michael, E., Johnson, Hiroyuki Takeshima, 2016. Rice in the Nigerian Economy and Agricultural policies. A publication of the International Food Policy Research Institute (IFPRI)

Okoruwa, V. O., Ogundele, O. O., 2006. Technical Efficiency Differentials in Rice Production Technologies in Nigeria. African Economic Research Consortium, Research paper No. 154.

Osagie, C. 2014. 2015 rice importation ban: Disregard US report, FG urged. Available from [Accessed 17/05/14].

Premium Times, 2019. “Rice production in Nigeria hits 15 million tonnes” Thursday April 25th Premium Times News. Culled from http://www.premium…/240287-rice-production-nigeria-hits-15-million.

PrOpcom, 2007a. (Promoting Pro poor Opportunities in service and commodity Markets) (2007a). Demand and Supply study on Domestic and Imported rice in Kano Area. Monograph series 22, July. Optimum Agricultural consultants, kano, Nigeriace in kano Area.

Sahel Newsletter, 2015. Rice in Nigeria; Industry and Dynamics. Vol 12: 1-3. Published by Sahel Capital Partners and Advisory Limited.

Singh, B.N., Fagade, S., Ukwungwu, M. N., Williams, C., Jagtap, S. S., Oladimeji, O., Efisue, A., Okhidievbie, O. 1997. Rice Growing Environment and Biophysical Constraints in different Agro Ecological Zones of Nigeria. Met. Journal. 2(1): 35-44.

Terwase I.T., Madu, A.Y. 2014. The Impact of Rice Production, Consumption and Importation in Nigeria: the political economy perspectives. International Journal of Sustainable Development & World Policy. 3(4):90-99.

Vanguard, 2016. Nigerian Small holder rice farmers lament. February, 5th 2016 Vanguard News.

World Population Review 2019. The Nigerian Population. http://worldpopu.
Original Manuscript