Present study was conducted to determine the allocative efficiency and resource use of banana and
plantain production enterprises in Bayelsa State of Nigeria. Three-stage sampling technique was used
for drawing the samples and getting data. Total sample size was 180 farm households. The data were
analyzed by using mean and production function models. Allocative efficiency and resource use results
indicates farmers incapability in efficient use and allocation of banana and plantain suckers, family labor
and hired labor. In relation to total revenue, the elasticity of the plantain suckers showed that, an
increase in it by one unit will lead to an increase in total revenue. Results from the allocative efficiency
index, objective of profit maximization and equimarginal principle, indicated that banana suckers were
efficiently allocated, while plantain suckers were inefficiently allocated; family and hired labor were
inefficiently allocated in both banana and plantain enterprises. While plantain suckers were underutilized,
family and hired labor were both over-utilized in both enterprises, suggesting that farmers were
yet to achieve absolute degree of allocative efficiency in these resources. However, they could profitably
reduce the quantity of family and hired labor and increase plantain suckers that they employ. Thus,
allocative efficiency and resource use can be enhanced by the provision of credit/ loan, good rural roads,
improved varieties of suckers and farming technologies, extension services and subsidized farm inputs
and equipment among others by Government, Non-Governmental Organizations (NGOs) and
institutions alike through genuine political will.