This study examined the profitability of pepper production in Ogun State, Nigeria. The
study was based on primary data collected from 120 pepper farmers using a multistage
sampling technique. Data collected were analysed using descriptive statistics and
budgetary analysis. The results revealed that 85.0% of the sampled farmers were males
with a mean age of 43 years and mean pepper farming experience of about 12 years.
Majority (84%) of the respondents were married, 67% were natives, 48% had household
size of 6 to 10 members and with mean household size of 8 persons. Majority (77%) of the
respondents cultivated between 0.10ha and 1.54ha of land with a mean farm size of
1.23ha. This study also revealed that about 58% of the pepper farmers financed their
production from personal savings. The major constraints to pepper production among the
sampled farmers were inadequate viable and disease-resistant seeds (84%), inadequate
transportation (91%) and inadequate access to finance/credit (91%). The budgetary
analysis per hectare revealed that the sampled pepper farmers incurred N228,293.06
(US$1,521.95) and N9,765.49 (US$65.10) on variable and fixed cost items respectively
and earned a revenue of N622,847.56 (US$4,152.32) as well as a profit of N251,496.09
(US$1,676.64) per ha/season. Pepper production had a return on investment of 2.62. Thus,
pepper production was found to be a profitable enterprise considering the profit realised
by the farmers in the study area. The study recommended that policies should be
implemented by government to provide financial assistance to farmers in order to access
adequate farm resources and expand the existing scale of production. Good and accessible
roads should be constructed to facilitate movement of farm inputs and pepper produce.