EDO PALM OIL PROGRAMME AND BOOSTING NIGERIA’S GDP

Edo palm oil has a direct impact on the environment. It has a direct impact on the food we eat, how much of it we consume, the quantity and the quality, as well as the Gross Domestic Product of Nigeria. Edo State is the leading palm oil producer in Nigeria and it is contributing greater percentage to Nigeria’s GDP. Between January and March 2021, agriculture contributed 22.35 per cent of the total GDP.

Edo State is carrying out palm oil research and development programmes, along with education and training initiatives, are being rolled out to promote better farming techniques and improve the quality of seeds. Such steps can help to boost productivity, cut down on palm oil imports and attract investment.

According to a new report, Nigeria’s palm oil imports in the past six years stood as follows: 2017, N21.2billion; 2018, N32.2 billion; 2019, N19billion; 2020, N22billion; 2021, N134.7billiion; and 2022, N70.2 billion. This translates to N299.6billion.

A barrel of palm oil sells for $600 at the international market. Nigeria gets most of its supply of palm oil from Malaysia, India, China and Cameroon. According to the National Bureau of Statistics (NBS), palm oil ranks among the top five agricultural products imported into the country in spite of the fact that it was one of the items excluded from forex list in June 2015.

The present Edo palm oil programme has the capacity to stop palm oil import in Nigeria. Nigeria imports over $500 million worth of palm oil yearly which Edo palm oil programme will eliminate in the next five years. Edo Palm Oil programme will soon stop the importation of palm oil in Nigeria. Governor Obaseki has changed the narrative on investment in palm oil plantations in Nigeria and he has attracted millions of dollars worth of investments into palm oil development. Central Bank of Nigeria is also involved.

A barrel of palm oil sells for over $600. Nigeria’s Palm Oil imports from Malaysia – a top global producer have surged by 353 percent in the first four months of 2023 despite local players ramping up production, data from the Malaysian Palm Oil Council shows. The country’s palm oil import from Malaysia increased to 92,961 metric tons (MT) between January-April 2023, from 20,513 MT in the corresponding period of 2022. This indicated a 72,448 MT increase.

In 2022, the country imported 227,035 MT of palm oil from Malaysia. Despite moves by the government, in listing crude palm oil alongside other 40 items restricted from forex access, and closing the Nigerian borders, oil palm imports into the country are still on the rise owing to the huge demand-supply gap, according to experts.

Nigeria’s oil palm imports from Malaysia will continue to increase for the time being because our investment in the industry is still very insignificant,” Henry Olatujoye, managing director, Palmtrade and Commodities Development Nigeria Ltd, said. I estimated that our local/domestic consumption is averaging 2.4 million tons in a year, and our first-class developers – Okomu, Presco, and others, do not annually produce up to 800,000 tons.

According to the United States Department of Agriculture (USDA), the production of palm oil in Nigeria reached 1.4 million metric tonnes (MT) in 2022, a 9 percent uptick from 2020/21 when production stood at 1.28 million MT.

Despite featuring prominently on a June 2015 list of import item not valid for forex by the Central Bank of Nigeria (CBN), Nigeria imported at least N299.6bn of palm oil from 2017 to 2022, an analysis of Nigeria’s Foreign Trade has revealed. The reports, which are released quarterly by the National Bureau of Statistics (NBS) indicate that the product itemed ‘Palm Crude Oil’ is often among the top five imported agricultural products into the country. The oil palm tree produces high-quality oil used primarily for cooking in developing countries. It is also used in food products, detergents, cosmetics and, to a small extent, biofuel.

According to the former governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, Nigeria imported 302,000 metric tons in 2017 despite placing the product in the forex exclusion list.

A bill seeking to establish the Edo State Oil Palm Programme  has passed through the second reading on the floor of the state House of Assembly. Speaking during debate on the bill, the Majority leader, Charity Aiguobarueghian, said the intention was to provide a legal framework for the development of the oil palm industry in the state. When passed, the bill will establish a roadmap for the state to harness the benefits in the oil palm industry. ”Oil palm has been the mainstay of the state economy long before crude oil was discovered. This bill will regulate oil palm production activities in the state. ”It is a billion-dollar industry that has the potential to boost the revenue of the state,” he said. Aiguobarueghian said that Edo remained one of the leading states in oil palm cultivation and production in the countr

The Governor of Edo State has allocated lands for large-scale commercial farming in multiples of 5,000 and 10,000 hectares to both indigenous and foreign agro-investors like Agro-allied Resources and Processing Nigeria Limited (Dufil), AgriPalm Ltd, a subsidiary of Flour Mills Nigeria Plc, Saro Oil Palm, Bragav Nigeria Limited, Saturn Farms among others. These investors are currently at different stages of development at their respective lands.

70,000 hectares allocated under Edo oil palm programme in 4yrs. The Edo State Government of Nigeria has set out 100,000 hectares (ha) of land for oil palm cultivation by investors. The Governor of Edo State has allocated lands for large-scale commercial farming in multiples of 5,000 and 10,000 hectares to both indigenous and foreign agro-investors like Agro-allied Resources and Processing Nigeria Limited (Dufil), AgriPalm Ltd, a subsidiary of Flour Mills Nigeria Plc, Saro Oil Palm, Bragav Nigeria Limited, Saturn Farms among others. These investors are currently at different stages of development at their respective lands.

More than 300 thousand people in Edo State build their lives around palm oil and its derivatives, either directly or indirectly. These are some of the reasons why our government should take special interest in the oil palm industry, just as it is now doing with rice. Special grants should be provided and, in a matter of less than 10 years, Nigeria could become a world leader once again.

It is sad that a country that was once the world’s leading producer of palm oil has become a major importer of the same product. But because of the importance of palm oil in cooking and as an industrial raw material, the commodity continues to be in very high demand in Nigeria and beyond.  While the current domestic production stands at 970,000 metric tonnes per annum, the demand is put at 2.7 million metric tonnes yearly. This means that, despite the scarcity of foreign exchange, the country has to get the shortfall through import.

Edo State Governor, Mr. Godwin Obaseki, has said his administration plans to earmark not less than 200,000 hectares of land for organised oil palm plantation to diversify the state’s economy and create jobs for its teeming youth population.
Governor Obaseki has disclosed during the public presentation and launching of the Nigeria National Interpretation of Round table on Sustainable Palm Oil (RSPO) in Benin City, Edo State. He said, “The goal for the palm oil industry is to have not less than 200,000 hectares of organised oil palm plantation by the end of my administration. We are ready to fulfill our commitment made during the commissioning of the extension II project for Okomu Oil Palm Company, to pioneer the establishment of Oil Palm Council of Nigeria.”

According to him, the state is committed to the principles of the RSPO, noting, “adopting the principle is critical in ensuring the achievement of the goal to position the state as the hub of palm oil production in the country. We will develop a master plan to deepen and re-enforce some of the RSPO principles with specific benchmark.”
He said as part of the state’s plans to ensure RSPO compliance, the state government has partnered with Pro-Forest to audit the forest assets in the state. “We have set-up a technical committee to review the report and work towards establishing a forestry commission for the state,” he said. Obaseki commended Okomu Oil Palm Plc for its collaboration with the state to train fifty students from the College of Agriculture, Iguorhiakhi for a period of three months