If you are an oil palm farmer or investor, this may be one of the best agribusiness news you will ever receive, at least for now. Please pay keen attention to this piece…
No doubt, you know all the ugly stories about oil palm business in Nigeria. You know that Nigeria used to be a major producer of palm oil when agriculture was still the mainstay of the economy
Is it not disturbing that the Malaysians, who are now on the world map of oil palm even visited Nigeria and went back with some seed samples of the country’s oil palm?
How did we get here? How come Nigeria still expend close to $500 million on oil palm importation annually? This is an amount that could have contributed hugely to our economic growth and aid job creation for our teeming youths.
But the good news is…
Things are about to change. Something great is coming to the oil palm sub-sector. All oil palm farmers and investors are about to smile again. Their moments of grief are about to pass away. If this sounds too good to be true, I beg you to read on.
As I write this, I can confidently confirm that there is an ongoing total overhauling of the entire wheels of production in the Nigerian palm oil industry.
The intent is to re-position it as a viable alternative to crude oil in the country, so as to insulate the economy from the shocks associated with volatility in crude oil prices and also provide buffers for the economy.
Right now, there is an on-going initiative by the Central Bank of Nigeria to reposition the oil palm industry and this will be a major catalyst for economic diversification.
The CBN Governor, Mr. Godwin Emefiele, had at a meeting with the governors of the South-south and South-east states, including other critical stakeholders in the palm oil industry said:
“We are determined to change this narrative. We intend to support improved production of palm oil to meet not only the domestic needs of the market, but to also increase our exports in order to improve our forex earnings.”
How Does This affect You?
- Access to low-interest loan: You will be able to access 1-digit interest loan. That means interest on loans will not exceed 9%. That is just a give-away.
- Land Availability: Governors of the oil palm producing states of Nigeria were at the meeting and have vowed to make more lands available to actualize this noble dream.
- Smugglers and Importers will be stopped: In a bid to accelerate domestic production of goods in the country, the menace of smuggling and dumping of goods into Nigeria will be addressed. Price will go up and farmers will smile.
- Improved Inputs: Planting materials and other inputs will be improved upon for maximum output. Arrangements are being made with quality seedling suppliers to ensure this works well.
Today we are a distant 5th among leading producers of palm oil; we barely produce up to three per cent of the global supply of palm oil, with estimated production of 800,000 MT of palm oil, while countries like Malaysia and Indonesia produce 25million and 41 million tonnes of palm oil respectively.
Continuing, he added: “We have also become a net importer of palm oil, importing between 400,000 – 600,000 MT of palm oil in order to meet local demand for this commodity.”
Despite the availability of over 3 million hectares of farmland for palm oil cultivation, production remains low at close to 2 tonnes per hectare, relative to a global benchmark of 25 tonnes per hectare.
If you are an oil palm farmer, seedling and seed producer, processor, research personnel, you are in for something good. This arrangement is for you.
This is not the time to get discouraged because of the past challenges. You will soon be able to cultivate larger plots of land for more profits.
Be assured too that banning the smugglers’ activities will also increase price soon.
Need A Professional Assistance?
If you have any issue in your plantation and you want professional advice, our team can help. We have over 15 years experience in working with one of the biggest oil palm companies in West Africa.
Our success speaks volume. We have assisted several farms get out of debt to making real income everyday. Chat with us for free to know how we may be of help.
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