Economic Analysis of Cane Furniture Production in Rivers State, Nigeria

Type Journal Article - Journal of Economics and Sustainable Development
Title Economic Analysis of Cane Furniture Production in Rivers State, Nigeria
Author(s)
Volume 4
Issue 5
Publication (Day/Month/Year) 2013
Page numbers 31-39
Abstract
Cane furniture business has provided support for households for decades in the tropical rainforest regions due to
the utilization, aesthetic and durability of its products. This study evaluates the viability of the enterprise among
cane furniture producers in Eleme, Obio Akpor, Oyigbo and Port Harcourt city Local Government Areas (LGA)
of Rivers State, Nigeria. Data obtained from the randomly administered questionnaires were analyzed using net
income to assess the profitability of the enterprise. Benefit cost analysis was used to determine the viability of
the enterprise while Rate of Returns on Investment (RORI) was calculated to determine the rate at which the
money invested on the enterprise could be realized. Results revealed that cane furniture production is profitable
in all the four (4) LGAs assessed. Mean profit margins over three years were lower in Eleme (N225,933.00) and
Port Harcourt (N170,334.00) LGAs because the entrepreneurs were mainly on part time production, while
producers in Obio Akpor (N1,621,386.00) and Oyigbo (N1,061,219.00) LGAs had higher profits because they
operate on full time basis. Computed RORI showed that the enterprise is worthwhile in the area, with 210.72%,
182.72%, 66.32% and 29.82% in Obio Akpor, Oyigbo, Eleme and Port Harcourt city respectively. Also benefit
cost analysis showed viability of the business. Majority of cane furniture producers were males (98.75%) and
mostly middle-aged individuals between 20 and 49 years old. Awareness of the prospects in the business will
create job opportunities for the teeming population; investment in cane furniture production is capable of
generating good income for households. Incentives in form of improved and affordable tools from poverty
alleviation agencies are recommended as panacea for higher profits in cane furniture production.

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