Sebbaceous Addenitis. My first Akita got it, it's permanent and rough to treat. The only way to diagnose for it is by doing a skin punch biopsy. However, if your vet hasn't mentioned anything about doing one, and you've seen some improvement with changing the diet and so forth that may not be it. Akitas are prone to all sorts of skin problems.
I think this is allergies though. My Akita has been having skin problems all season this year. He's better but not normal yet. I'm anxious to see what happens when fall is over and the pollens and molds that have been at an all time high this year go away. When I brought my Akita into the vet in June he thought that it was probably a food allergy of some sort but he already had been getting organic non-allergenic dog food, so if it was a food allergy it wasn't his dog food... but I did switch him to a different organic non-allergenic dog food (which he hated) and there was no change, so it wasn't his dog food. He's back to his original organic non-allergenic dog food that he likes and has had improvement, so I don't even think it's a food allergy at all but environmental. MY allergies have been ghastly since the beginning of March and haven't really stopped. I've never experienced anything like this before with my own allergies and I've heard everyone else saying the same thing.
If you think it's a food allergy, he has to have a diet of non-allergenic dog food like Newman's Own or Natural Balance Duck and Potato. My dog loves the Newman's Own but he hated the Natural Balance Duck and Potato. Natural balance makes a lot of other flavors, but for some reason my beast doesn't like dog food with any red meat of any kind. The most important thing is that he gets NO other food tidbits of any kind. The only way to find out if it's a food allergy and what food it is is to cut out ALL extra foods and switch to a different food and than gradually introduce those tidbits he used to get and see how he reacts. It's also rare that it would be a food allergy without some potty problems to go along with it which was the main reason that the vet wasn't sure that it was a food allergy my dog had since he makes such perfect poop every time like clockwork that I'm envious.
Olive oil is great to put ON the skin, but can trigger allergic reaction if the dog eats it. If you want to give him oils to ingest to help his coat, give him fish oil pills. He'll probably eat them right out of your hand since they smell fishy and probably the goo inside the capsules tastes fishy too.
The improvement you might be seeing is the lowering of the pollen/mold count which I'm pretty sure is what has been plaging my Akita this season.
Does your Akita have drippy or irritated eyes at all or has he sometime this season? Mine has and it coinsides with the skin problem, so that also makes me believe it's an environmental allergy rather than a food allergy.
Whatever sort of allergy your dog has, you probably want something from the vet to calm the itching because it's the scratching that is causing the sores and loss of hair. My Akita has thinned out his hair a lot with all his scratching, but he hasn't got any bald patches or broken the skin... the sores he had were small round crusts of skin flakes that were classic signs of bacterial infection from his scratchings. I had good luck with the topical stuff to get rid of the sores but the antibiotics didn't do a thing. He's only got a few little spots left now and only a little bit of skin flaking that's now more like dandruff than those showers of big flakes.
To heel the sores, this stuff is totally awesome...
http://store.vetericyn.com/index.php/wound-infection/vetericyn-wound-and-infection-16-oz-trigger-2.htmlGot rid of most of his spots after just two sprayings.
Akitas are sensative to different foods, and it's not a good idea to be giving him any people-type foods at all. Stop giving him people-type oils to eat and give him the fish oil pills. You'll need to determine exactly what is causing his skin problem in order to treat it properly, and the vet needs to determine what exactly the problem is. It could be a food allergy, but you need to know which foods are the problem, and it could be and probably is this horrible allergy season we've had this year.
Did his sluggishness coincide with the skin problem? It may be nothing more than because he's feeling itchy and crappy and it's summertime (Akitas as you probably know dislike hot weather), but it might be something else. This is something only your vet can determine. My beast was always on the lazy side, and in the hot weather sleeps constantly and generally doesn't want to move, and if he has to does it grudgingly. During this time of year I only do his walks during the coolest part of the night, and he only goes out in the day to go to the bathroom and runs right back inside again. Now that it's getting cooler finally he's perked back up a lot, but this is all just how he is.
Get to the vet. You need to figure out just what the problem is and the best way to treat it.