RUBBER PRODUCTION AND ITS CONTRIBUTION TO NIGERIA ECONOMIC DEVELOPMENT

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Rubber is important in the socio-economic life of many tropical developing nations, such as Nigeria and Brazil. Natural rubber, Para rubber, Hevea Brasiliensis, is a commercial tree economically grown in plantations. Para rubber plant is useful for the latex that bleeds from the stem in the event of wounding. The product of the coagulated latex is rubber. Rubber is used in the manufacture a number of industrial products which range from tires, balls, containers, shoes to bands and a lot of other items. Before the 60s, before the era of the oil boom, rubber was one of the agricultural commodities that were the main stay of Nigerian economy. The cultivation of rubber provided bulk employment for the people of the then Mid-West now known as the Edo and Edo States. However, rubber is not native to Nigeria. As the name suggests, it is an introduction from Brazil. The natural range of Hevea, of the family Euphorbiaceae, covers the Amazon river basin and parts of the nearby uplands. Within the genus, Hevea brasiliensis (also known as para rubber) is one of the most widely distributed species. (Wycherley 1992). The rubber tree has always been known for its latex, which was used by the ancient civilizations of Central and South America. The commercial and large-scale exploitation of the tree did not begin until in the last quarter of the 19th century. With the arrival of cars, discovery of the pneumatic tyre and following increase in rubber prices, the produced amount of plantation-originated rubber was soon larger than that of wild rubber. At the same time, there were strong geo-political pressures to move the rubber production away from South America (Jones and Allen 1992). While searching for a cash crop for its eastern colonies, the British identified rubber as a potential crop for planting in Southeast Asia (Hong 1999). Rubber was first introduced in Asia in 1876, when seeds were first shipped from the Amazonas to the United Kingdom and further to Ceylon and planted there. In the following year, rubber trees were planted in Singapore and Malaya (Hong 1999). Although rubber was first an estate crop, local individual farmers soon adopted the crop and so they were drawn into the world commercial economy (Courtenay 1979). Hevea brasiliensis is a tropical, deciduous tree, which grows 25-30 meters tall in its natural distribution area. Most of the planted trees are smaller, because they have been bred for the production of latex without taking much into account their wood production potential (Hong 1999). The bole of the rubber tree is usually straight but quickly tapered, and heavy branching is common. The branching pattern is very variable, and the leading stem can be dominant or soon divided into several heavy branches. The tree is easily damaged by strong winds (Lemmens et al. 1995). Clonal variation in wind-resistance has been observed, depending on types of branching (Cilas et al. 2004). Rubber tree matures at the age of seven to ten years, after which latex tapping can be started. When aiming at economic latex production, the life cycle of a rubber plantation is 30-35 years, after which replanting is necessary. STATEMENT OF PROBLEM Natural rubber performed three main functions in the Nigerian economy; firstly it provided some of the foreign exchange and placed Nigeria in the world map as an exporter of rubber products. Lastly it provided employment for a sizeable segment of the rural populace. The situation in Nigeria presently pretends a drift from beings a major exporter of rubber products into becoming a net importer in the nearest future. The important question or issue is what the reasons are for the observed down turn or reduction in productivity of rubber, especially I Ovia North East Local Government Area of Edo State. 1.3 Objectives of the Study The aim of the study is focused on the positive impact of rubber production on the economic development in Ughelli Local Government Area, Edo State.. Specifically, the study seeks to: i. examine the current state of rubber production in Nigeria and its economic impact. ii. assess the contributions of rubber production to economic development iii. investigate the contribution of rubber production to job creation and export revenue. iv. To identify the challenges faced by rubber producers and explore the factors limiting their success in expanding production 1.4 Research Questions The following research questions guide the study: i. What is the current state of rubber production in Nigeria? ii. How does rubber production contribute to economic development, particularly in terms of employment and rural development? iii. How does rubber production contribute to job creation and export revenue? iv. What are the challenges faced by rubber producers and explore the factors limiting their success in expanding production? 1.5 Research Hypotheses The study will test the following hypotheses: H₀: Rubber production does not significantly contribute to the economic development of Nigeria. H₁: Rubber production significantly contributes to the economic development of Nigeria. 1.6 Significance Of The Study This research which is basically investigating will help to achieve the following: a. Give details of factors responsible for low production of rubber in Ughelli Local Government Area. b. It will reveal the perception of farmers on the decline of rubber production. c. It will help proffer solutions to these factors. d. It will be a working tool for both government and non-governmental agencies on how to tackle the decline in rubber production. 1.7 Scope of the Study The study focuses on rubber production in Nigeria, with specific emphasis on regions known for significant rubber farming activities, such as the South East and South West. It will examine the economic impact of rubber production on both local and national levels, with a focus on job creation, rural development, and export potential. The study will also address the challenges faced by rubber producers in Nigeria and offer recommendations to enhance the sector's growth. 1.8 Limitations of the Study The study is subject to several limitations: Geographical Limitation: The research is limited to Nigeria, and while rubber production is an important aspect of economic development in several African countries, the findings may not be directly applicable to other regions. Data Availability: While efforts will be made to obtain reliable data from government agencies, rubber associations, and farmers, there may be gaps in the data or challenges related to data accessibility and accuracy. Time Constraints: The study’s scope is limited to a relatively short timeframe, which may restrict the extent of data collection and analysis. 1.9 Definition of Terms Rubber Production: The cultivation and processing of rubber trees (Hevea brasiliensis) to produce raw rubber, which is used for various commercial products. Economic Development: The process of improving the economic well-being and quality of life of a nation or region, typically through increased productivity, employment, and the availability of goods and services. Job Creation: The process of generating employment opportunities for individuals, which can be a direct or indirect result of increased economic activity in a sector such as rubber production.