Analysis of the Profitability of Pepper Production in Nasarawa State

Pepper (Capsicum spp.) is a widely cultivated horticultural crop in Nasarawa State, Nigeria's North Central geopolitical zone, valued for its culinary significance and market demand in urban centres including Abuja and Lafia. Despite active cultivation, detailed profitability assessments for pepper farms in the state remain scarce. This study analyses the profitability of pepper production in Nasarawa State using data collected from 130 farmers across three local government areas. A structured questionnaire was used to document inputs, land area, output, prices, and marketing costs. Gross margin, net profit, and return on investment analyses were computed to determine the financial performance of pepper enterprises. Results show that the average gross margin per hectare was N98,700, with an average return on investment of 1.58. Agrochemicals and hired labour were the two largest cost components, together accounting for 61 percent of total variable expenditure. Price volatility during peak harvest periods was identified as a major income risk factor, with prices dropping by up to 55 percent during periods of simultaneous market entry by multiple farmers. Only 17 percent of farmers had access to storage facilities that would allow them to delay market entry and benefit from off-season price premiums. The study recommends the establishment of pepper marketing associations in Nasarawa State and the provision of low-cost drying and cold storage facilities to reduce price vulnerability. Keywords: pepper production, profitability, Nasarawa State, price volatility, horticultural enterprise