Profitability Analysis of Pepper (Capsicum Species) Production in Okene Local Government Area, Kogi State, Nigeria

Abstract

This study investigates the economic viability of and challenges faced by pepper farmers in the region. As a globally significant spice crop of immense culinary and economic importance, pepper contributes to nutritional health and accounts for approximately 40% of vegetable consumption in Nigeria, which yielded 762,174 tonnes of green chilies and peppers in 2020. The research aimed to describe the socio-economic characteristics of chili pepper farmers, assess profitability, and identify production constraints within Okene Local Government Area. Employing a multi-stage sampling technique, data were gathered from 99 respondents using structured questionnaires, personal visits, and interviews. Findings reveal that pepper production in Okene LGA is, on average, profitable, yielding a mean Net Farm Income (NFI) of ₦749,303.03, though significant variability exists, with some farmers experiencing losses. Key constraints identified include sole reliance on pepper farming, limited access to formal credit, and a lack of off-farm employment opportunities. Consequently, the study recommends targeted policy interventions—such as accessible microfinance, improved farm inputs, and stronger agricultural extension services—while emphasizing gender-sensitive development and income diversification to enhance rural sustainability and livelihoods.