Palm oil processing is a major source of
income and employment to a large proportion of the
resource poor rural population in Nigeria especially
in the southwestern part of the country. In recent
times, its production has drastically downsized.
Evidence from (CBN/ NISER, 1992) revealed that this situation has been brought about by a number
of socio-economic and political factors along with
the technological know how in the industry.
Principal among the factors responsible for this
decline is the inefficiency that exists in the
production system for palm oil processing. Such
inefficiencies arise from high cost of labour, lack
of linking roads for transportation, electricity,
water, inadequate credit facility.