World Bank assisted National Agricultural Research Project (NARP) - University of Port Harcourt
Abstract
Investing in trees offer financial and social returns for years to come
and it is a lucrative long-term investment in Nigeria. Despite the
substantial gain on investment in tree planting, only few people are
still involved in the business. This paper analyzed the profitability
of investment in tree crop planting for income generation. Benefit Cost
Ratio (BCR) and Net Present Value (NPV) were calculated to determine
the financial viability of tree crop planting. The study showed that
tree crop planting is a profitable business as shown by positive NPV of
\u20a62,187,822.0 and \u20a62,782,214.97 for Tectonia grandis and
Moringa oleifera plantations respectively, after 10-years of
maturation and harvesting at 14 % discount rate with a B/C Ratio of
1.97 and 1.6 respectively. Also, NPV of \u20a61, 575,487.10 for a
5-year small scale private nursery establishment with a B/C Ratio of
2.79 at a 14% discount rate also confirm that the investment on nursery
establishment is highly profitable. It is recommended that with
adequate support and incentives, farmers can take advantage of these
opportunities and invest in nursery enterprise and tree crop sub-sector
of the economy
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