Income Levels and Inequality Among Charcoal Producers in Southwestern States, Nigeria

The Income levels and inequality of charcoal producers were investigated in the Southwestern Nigeria. Multi-stage sampling technique was used to select 600 respondents, out of which the responses obtained from 487 were used for data analysis. Primary data were collected with the use of structured questionnaires. Data were analyzed using descriptive statistics and Gini coefficient index. The estimated Gini Index measured on group A was 0.28 for Oyo and Ogun state while the contribution of income variability to which is inequality were 0.12 and 0.13 for both state respectively. The result from annual average income for producers with other sources of income of the respondents were (₦117,039 and ₦114,264.3), while income from charcoal (₦90,142.45 and ₦ 91,584.01) respectively. The inequality result from other sources of income was higher in Oyo state (0.23) than Ogun (0.21) state. Income inequality was generally low among charcoal producers. Average annual income was higher for producers with other sources of income. Generally, low income of less than $1 per day is prevalent among the charcoal producers and the situation predisposes them to poverty which could warrant the need for destruction of the available forests in order to survive. It is recommended that Local, State, Federal and Private organization should endeavour to involve in policy and livelihood programs that can improve the welfare of the people and reduce environmental harmful practices.