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The study provided an economic analysis of the losses from deforestation in Enugu State of Nigeria. Specifically, the study evaluated the effects of socioeconomic factors affecting deforestation in Enugu State. It also identified the factors that influence the decision to deforest. The study further examined the nature and extent of deforestation in the state. Primary and secondary data generated were analyzed with descriptive statistics, multiple regression and logit analytical techniques. Also total economic valuation (TEV) model of valuing deforestation was used to achieve aggregate economic loss from different deforestation operations in different sectors of forest use. The major finding of the study shows that bush fire was the highest cause of deforestation in Enugu State. From the study, 69% of the respondents stated that they had no knowledge of any forest extension services. Furthermore, the total economic value (TEV) loss of forests in the last three years were N75,855,558.00 for 2008; N89,674,707.00 for 2007 and N85,683,956.00 for 2006. Multivariable linear results of farmland clearance of forest for cropping activities show that only size of land, land tenure system and types of cropping were significant at 5% in explaining the observed variabilities in the dependent variable (Y). The study further found out that deforestation experience, household size, total landholdings, educational attainment and gender of respondents were significant at 10% in explaining the observed variabilities for socioeconomic characteristics influencing the decision to clear forest for agricultural activities using farmers level logit regression results. Based on the findings, the study recommends that forest extension services to the rural households that engage in forestry activities should be strengthened through frequent training. This will help them have adequate and recent information about government policies on environment and communicate the same to the rural stakeholders. Also, there is need for constant use of both electronic and print media in strengthening anti-deforestation awareness and in communicating recent forestry policies of the government to all the stakeholders in the state. Government should encourage the use of energy saving stove. This will help reduce the quantity of fuel-wood use and hence reduce the level of deforestation in the study area.