With less than a year to the 2024 target for Nigeria to attain self-sufficiency in palm oil, it is becoming unrealistic for a country, which once occupied the vantage position as the leading exporter of the produce to return to that enviable position it relinquished, going by the current production capacity.
He promised support for improved production of palm oil to meet not only the needs of the domestic market, but to also increase exports to improve Forex earnings. “Some statistics will say we are consuming over three million metric tonnes, but all we know is that oil palm import is hovering between $500 to $600m yearly,” Inyang told The Guardian.
What gives hope to fresh expectations was a report that the country’s crude palm oil imports from Malaysia – the second top grower of the crop have declined by 34.7 per cent, as local production rises on increased investments. “Nigeria has seen the need to grow more plantations. Currently, the rate at which forests are being converted to oil palm plantations has grown astronomically and I can say authoritatively we have added up to another 100,000 hectares to the forest conversion to plantation, most especially in Edo and Ondo states.
But while much has not been heard from the northern states, their southern counterparts, especially the Southeast governors and stakeholders have stepped up their games, to make the produce their source of revenue and a dominant player in foreign exchange earnings. Based on The Guardian market survey in Lagos, Ogun, Oyo and Osun states, the price of a litre of palm oil is currently higher than a litre of Premium Motor Spirit . While a litre of PMS is between N184 and N350, a litre of plam oil hovers around N1, 160 and N1, 200.
On his part, Olatujoye also attributed the development to supply deficit, aggravated by population explosion, as well as increase in industrial utilisation. “Palm oil has always been higher in price when compared to petroleum products; this is because of population, which leads to increase in industrial utilisation and consumption.
“There’s no Unilever without palm oil, there can never be noodles without palm oil – there are over 10 brands of noodles in the country today, palm oil forms more than 45 per cent of raw materials that is needed for the noodles industry. “The adulteration of palm oil is still persistent all over Nigeria. They have even gone beyond mixing magenta – a deep red-like dye, with the palm oil to improve its coloration. People have now improved by mixing chemicals and pouring it into the palm oil to look more oily.
Continuing, Olatujoye said: “You know in every business environment, there is always the dark side of it. The only thing we can do is to create more awareness among consumers and do more training for people to understand that when looking for high-grade palm oil, these are the parameters. “On January 2, 2023, Ghana launched the Tree Crop Development Authority – promoted by government, but largely operated or implemented by the private sector. The TCDA is to cater for five tree crops – Coconut, oil palm, shea butter, cashew nut and rubber. This came after the success of the Cocoa Development Authority.
“The CBN has never extended any funding assistance or development intervention to the oil palm sector, despite various representation and meetings with them. They seem to be comparing oil palm with rice, sorghum, cowpea and the rest of them, saying our gestation period is too high. On his part, Inyang called for the establishment of National Oil Palm Development Council and a policy to drive the industry. “Currently, we have been trying to meet with the Federal Ministry of Industry, Trade & Investment on developing a policy on this. So, we need the cooperation of government to get a policy direction to revive this industry.