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Evaluation of the Production Efficiency and Profitability of Groundnut Production in Bwari and Gwagwalada Area Councils of Abuja, Nigeria

Year: 2025
Type: article
Abstract: — This study assessed the production efficiency and profitability of groundnut farmers in Bwari and Gwagwalada Area Councils of Abuja, Nigeria. Using a multistage sampling technique, 200 respondents were surveyed through structured questionnaires. Descriptive statistics, stochastic frontier production function, and net farm income models were applied for analysis. Results showed that 55.0% of farmers were aged 31–50 years, while 57.55% had 5–15 years of farming experience, reflecting an active and knowledgeable farming population. Education was moderate, with 40.0% having secondary education, and household sizes were large, with 57.5% reporting 6 and above members. The stochastic frontier production function indicated that farm size (0.298, t = 4.14***), seed (0.215, t = 3.16***), and labour (0.176, t = 2.98**) significantly influenced economic efficiency, while fertilizer and capital were not significant. Inefficiency variables indicated that age (–0.112, t = –2.43**), farming experience (–0.158, t = –3.04***), education (–0.092, t = –2.42**), extension contact (–0.185, t = –2.98***), and cooperative membership (–0.132, t = –2.69***) significantly reduced inefficiency, while household size and access to credit were not significant. Profitability analysis confirmed viability, with a gross income of ₦145,500/ha, total cost of ₦52,790.00, and net farm income of ₦92,710.00. The return per naira invested (RNI) was 1.76. Key constraints included high input costs (81.0%), limited credit (74.0%), pest infestation (67.5%), and inadequate extension services (60.0%). Based on the findings, the study recommended the 81.0% of farmers identified high input costs as a major constraint, policies should focus on input subsidies, group purchasing schemes, or improved distribution systems to ensure farmers can access quality seeds, fertilizer, and agrochemicals at lower prices.
DOI: 10.5281/zenodo.17489862
Language: English
Open Access status: green
OpenAlex ID: W7103187393
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