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An Investigation of the Economic Implications of Deforestation in Nigeria

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Background of the Study
Deforestation is a pressing environmental issue with far-reaching economic consequences, particularly in a country like Nigeria where forests play a vital role in sustaining rural livelihoods. Extensive deforestation has been driven by agricultural expansion, logging, and urbanization, leading to the loss of biodiversity and the disruption of ecosystem services. These forests provide essential resources such as fuelwood, medicinal plants, and raw materials for local industries. Recent studies conducted between 2023 and 2025 have underscored that deforestation contributes to soil erosion, reduced agricultural productivity, and increased vulnerability to climate change (Oluwaseun, 2023). The economic implications are profound: diminished forest cover affects the availability of natural resources, disrupts water cycles, and ultimately reduces the productivity of sectors that rely on forest ecosystems.

The loss of forest resources not only impacts rural communities but also has broader economic repercussions, including decreased tourism potential and increased costs of environmental degradation mitigation. The interplay between deforestation and economic development is complex, as the immediate economic gains from land clearing for agriculture or urban development are often offset by long-term losses in ecosystem services. This study aims to investigate the economic implications of deforestation in Nigeria by examining its impact on agricultural yields, rural incomes, and environmental sustainability. By integrating satellite data, economic indicators, and field surveys, the research will provide a holistic understanding of how deforestation undermines economic stability and propose sustainable strategies for forest conservation and economic development (Chinwe, 2024).

Statement of the Problem
Despite the short-term economic benefits associated with deforestation for agricultural and urban development, the long-term economic costs are significant. The loss of forest cover leads to soil degradation, reduced water availability, and diminished natural capital, which in turn negatively affect agricultural productivity and rural livelihoods (Ibrahim, 2023). These impacts are particularly severe for communities that depend on forests for fuel, food, and income generation. Moreover, the degradation of forest ecosystems increases the region’s vulnerability to climate variability and natural disasters, further exacerbating economic hardships. The current rate of deforestation in Nigeria is unsustainable, and existing regulatory measures have proven inadequate in curbing the loss of forest resources.

The lack of effective enforcement of environmental regulations and the inadequate integration of sustainable land-use practices in economic planning have resulted in a continued decline in forest cover. This scenario creates a cycle where short-term economic gains lead to long-term environmental degradation, ultimately undermining the economic development of rural areas. There is an urgent need to quantify the economic costs of deforestation and to identify the key drivers behind this trend. This study seeks to address these issues by evaluating the economic implications of deforestation and proposing policy interventions that can promote sustainable land management and forest conservation, thereby ensuring long-term economic and environmental sustainability.

Objectives of the Study

  1. To quantify the economic costs associated with deforestation in Nigeria.

  2. To identify the key drivers of deforestation impacting local economies.

  3. To propose sustainable land management policies that mitigate economic losses.

Research Questions

  1. What are the economic costs of deforestation on rural livelihoods in Nigeria?

  2. Which factors drive deforestation and its economic impacts?

  3. What policy measures can promote sustainable forest management?

Research Hypotheses

  1. Deforestation significantly reduces agricultural productivity and rural income.

  2. Economic incentives for land clearing exacerbate deforestation.

  3. Integrated land management policies can mitigate the economic impacts of deforestation.

Scope and Limitations of the Study
This study focuses on deforestation impacts in key rural regions of Nigeria using satellite imagery, economic data, and field surveys. Limitations include data accuracy and isolating deforestation effects from other economic variables.

Definitions of Terms

  • Deforestation: The clearing or thinning of forests by humans.

  • Ecosystem Services: Benefits provided by natural ecosystems to human society.

  • Natural Capital: The world's stock of natural resources.





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