Effects of Charcoal Production on Livelihood and Environment in Sapele Local Government Area, Delta State, Nigeria

Economic hardship, poverty, unemployment, and the escalating cost of oil have driven Nigerians to explore diverse avenues for sourcing domestic cooking energy to support their livelihoods. Trade in forest products have significantly influenced livelihood of market participants. This paper examines the many-sided impacts of charcoal production on livelihoods and the environment in Sapele Local Government, Delta State, Nigeria. The study involved 100 respondents and used descriptive statistics and multiple regression analyses. The findings showed that charcoal producers are predominantly male-dominated, with most respondents being married and having secondary education. They produce 21-40 bags of charcoal and have 10-19 years of production experience. The total variable cost of charcoal production amounted to ₦394.736.50, with a total fixed cost of ₦16.983.00. Total cost of production equaled ₦449.596.00, resulting in a gross margin of ₦54.859.5 and a net income of ₦37.876.50, leading to a return on investment of ₦9.20. The overall model fit was determined to be 59.3% (R2 = 0.593, p < 0.05), indicating that the variables could accurately predict 59.3% of income derived from charcoal production. Marital status, production size, and experience were identified as factors influencing profitability. Charcoal production was found to have positive impacts on livelihoods, including savings for future, paying children's school fees, and asset acquisition and access to health services. However, it had negative environmental consequences, such as tree felling, increased erosion, and elevated temperatures. Constraints identified included timber quality and availability. The study recommends policy interventions to address issue of timber quality to enhance charcoal production and stresses the importance of establishing woodlots to ensure sustainable development and mitigate wood scarcity.