Cost and returns on the marketing of charcoal within Ibadan Metropolis, Nigeria

  • MO Adedokun
  • OA Akintunde
  • SA Oluwalana
  • HA Adefamo
Keywords: Charcoal Marketing, Rate of Returns on Investment (ROI)

Abstract

The study on the cost and returns of charcoal marketing was carried out within Ibadan metropolis, Nigeria. The objective of the study was to investigate the returns on the sales of charcoal among randomly selected major charcoal markets. Questionnaire was used as a primary source of data collection. Descriptive statistics, Rate of Return on Investment and Cost and Return analysis was used to analyze the data obtained for the
study. The results revealed that 92% of the respondents were female, 44% were in the age group 36-45 years old which was the largest group, 41% had primary school education while residues and breakages (70%) constitute a very serious problem faced by the marketers. The result further show that Bodija market had the highest profit of about N59, 665 and rate of return on investment of 48.50% with this it implied that
there was high demand of charcoal in the market. Alesinloye had the lowest profit of about N23, 610 and the rate of return on investment was 19.04%. This was because it had the largest marketing cost incurred in the business and low revenue generated. It was concluded that to boost the business in the area, the producers should ensure that the pyrolysis or carbonization of wood is done perfectly so as to reduce residues.
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eISSN: 1597-0906