Page:Niger Delta Ecosystems- the ERA Handbook, 1998.djvu/131

From Wikisource
Jump to navigation Jump to search
This page has been proofread, but needs to be validated.

The Resources of the Niger Delta: Forests

biodiversity resources. Nonetheless it is necessary to make the effort so that the costs of losing forest are fully understood by political leaders and their advisers. For instance a proposal to convert high yielding natural forest to an oil-palm plantation might analyse costs and benefits upon the following basis.

Managed Forest Costs
  • Direct Costs as production of forest products;
  • Indirect Costs as damage by wildlife to crops; and
  • Opportunity Costs of land for other purposes.
Managed Forest Benefits
  • Timber and NTFPs;
  • Down-stream secondary industry;
  • Ecological functions;
  • Tourism and associated Income;
  • Intangible benefits, e.g. cultural significance.
Oil Palm Plantation Costs
  • Direct Cost as establishment and production costs;
  • Indirect as migration into the state, and environmental costs;
  • Opportunity Costs as loss of forest;
Oil Palm Plantation benefits
  • Secondary industry down stream;
  • Employment and associated services;
  • Transfer of skills;
  • Environmental benefits of tree crops.

The problem with current methods of Economic Cost Benefit Analysis is that it they do not adequately take into account the future value of forests because the present value of the income from a forest in 25 years time is negligible. But the fact is, that in 25 years time a properly managed forest will be yielding the same, or even more than it does now, while a rubber plantation after 25 years will have passed its peak and the soil may be irrecoverably damaged. How do we value the benefit of forests to future generations?

Hard pressed decision-makers, (whether they are state governors wanting to pay salaries or villagers wanting to eat and pay school fees) are, understandably, more interested in immediate financial returns. So it is essential that at the very least financial CBAs are undertaken when there is any proposal to change the use of forestland. These usually are greatly in favour of the forest, often because the management costs of a forest are so much less than of plantations. Moreover NTFP prices are rather less elastic than the prices of plantation products: future prices of mahogany are likely to be a good deal more stable than cocoa prices.

We stress, however, that forestry will only be attractive if cash returns reach the man in government house or in the village. If it does they will fight to retain the forests. If it does not, the forest and future income will be lost.

129