Effects of Freight Rates on Road Transportation of Agricultural Product in Southwest Nigeria
DOI: 10.61955/hudexk
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Summary
This study investigates the impact of freight rates on the road transportation of agricultural products in Southwest Nigeria, specifically within Ondo, Osun, and Ekiti states. The research is motivated by the critical role of efficient transport infrastructure in economic growth and market integration, alongside the challenges faced by the agricultural sector, such as inadequate infrastructure, fuel scarcity, and high logistics costs. The primary objective was to determine the relationship between freight charges and the distribution of farm produce, identifying key factors that drive up transportation costs and hinder supply efficiency. The researchers employed a cross-sectional survey design, distributing 400 questionnaires to transporters and market sellers in major markets across the three selected states. A total of 353 valid responses were collected, yielding a 90.7% response rate. Data were analyzed using descriptive statistics and regression analysis via SPSS version 25.0. The study focused on commodities such as yam, beans, tomatoes, onions, rice, carrots, and potatoes, primarily transported from Northern Nigeria to the Southwest. The findings reveal a statistically significant positive correlation (r=0.705; p<0.05) between freight rates and the transportation of agricultural products. The study identified that high freight rates are primarily driven by fuel scarcity, extortion by customs and law enforcement agencies, and long travel distances. In Ondo State, extortion was the highest-ranked factor affecting freight rates (mean score 3.57), followed by fuel scarcity (3.19) and distance (2.57). In Osun State, bribery and extortion were also the top concern (mean score 3.19), followed by fuel scarcity (3.11). In Ekiti State, fuel scarcity was the leading factor (mean score 2.89), followed by bribery (2.69). Conversely, low product demand was consistently ranked as a less significant factor across all states. Freight rates varied by commodity and load, with beans commanding the highest rate (₦1,600,000 for 60,000 kg) and tomatoes the lowest (₦400,000 for 15,000 kg). The study concludes that inefficiencies in the transport network, exacerbated by infrastructural deficits and institutional challenges like corruption and fuel instability, significantly increase the cost of moving agricultural goods. These elevated costs are transferred to consumers, affecting market prices and accessibility. To mitigate these issues, the authors recommend establishing an agricultural output databank and storage facilities to create a more efficient and environmentally conscious freight transportation system. The findings underscore the need for policy interventions to stabilize fuel prices, reduce extortion, and improve road infrastructure to enhance agricultural productivity and market integration in the region.
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| Stage | Outcome | Tool | Model | Prompt | Attempts | Completed |
|---|---|---|---|---|---|---|
| discover | success | Crossref | — | — | 1 | 2026-06-25 |
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Summary generated by qwen3.6-27b-prismaquant on 2026-06-26; verification: verified.
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