MARKET DEVELOPMENT
Nigeria Imports U.S.$500 Million Worth Vegetable Oil Yearly
Nigeria Imports U.S.$500 Million Worth Vegetable Oil Yearly
21/10/2014 (AllAfrica.com) - Abuja — Team Leader, Oil Palm Value Chain, in the Federal Ministry of Agriculture and Rural Development, Dickson Okolo, has said that Nigeria spends about $500 million in foreign exchange to import vegetable products yearly.
Making a presentation at the 2014 World Food Day Symposium in Abuja, Okolo said the huge expenditure must not be allowed to continue, as Nigeria is the fourth largest producer of oil palm, after Indonesia, Malaysia, and Thailand.
He explained that the demand for vegetable oil in Nigeria is 1.65 million metric tonnes as the local production from oil palm is 1.0 million metric tones; 0.3 metric tonnes is from other sources, while deficit of 0.35million metric tonnes is met through import.
He further noted that Nigeria has abundant comparative advantage in growing oil palm, adding concerted efforts should be made by critical stakeholders to reverse this ugly development.
Okolo also identified major challenges confronting the oil palm sub-sector to include ownership of smallholdings, low technology deployment (low application of fertiliser and improved planting materials), low productivity, low processing capacity and old and inefficient processing units, low value addition, low job creation, among others.
However, the Value Chain leader, who is also the Director of Federal Department of Cooperatives, said the Federal Government has begun to raise and distribute nine million improved tenera nuts from Nigerian Institute for Oil Palm Research (NIFOR) to smallholder farmers, estates as well as enhance wild grove production.
Okolo explained that the main goal of the Oil Palm Value Chain is to bridge the gap in national vegetable oil production and supply through hectarage expansion and productivity increase in organised holdings and semi wild grove and to achieve import substitution and create job and wealth.
The oil palm value chain, according to him, is being implemented in 24 States namely: Abia, Akwa Ibom, Cross River, Rivers, Bayelsa, Imo, Anambra, Ebonyi, Enugu, Delta, Edo, Ondo, Ogun, Osun, Oyo, Ekiti, Benue, Kwara, Kogi, Nasarawa, Plateau, Taraba, Adamawa and Kaduna states.
Under the Growth Enhancement Support (GES) Scheme, he said 15,353 farmers benefitted from the scheme in 2013 and 30,000 farmers in 2014.
Making a presentation at the 2014 World Food Day Symposium in Abuja, Okolo said the huge expenditure must not be allowed to continue, as Nigeria is the fourth largest producer of oil palm, after Indonesia, Malaysia, and Thailand.
He explained that the demand for vegetable oil in Nigeria is 1.65 million metric tonnes as the local production from oil palm is 1.0 million metric tones; 0.3 metric tonnes is from other sources, while deficit of 0.35million metric tonnes is met through import.
He further noted that Nigeria has abundant comparative advantage in growing oil palm, adding concerted efforts should be made by critical stakeholders to reverse this ugly development.
Okolo also identified major challenges confronting the oil palm sub-sector to include ownership of smallholdings, low technology deployment (low application of fertiliser and improved planting materials), low productivity, low processing capacity and old and inefficient processing units, low value addition, low job creation, among others.
However, the Value Chain leader, who is also the Director of Federal Department of Cooperatives, said the Federal Government has begun to raise and distribute nine million improved tenera nuts from Nigerian Institute for Oil Palm Research (NIFOR) to smallholder farmers, estates as well as enhance wild grove production.
Okolo explained that the main goal of the Oil Palm Value Chain is to bridge the gap in national vegetable oil production and supply through hectarage expansion and productivity increase in organised holdings and semi wild grove and to achieve import substitution and create job and wealth.
The oil palm value chain, according to him, is being implemented in 24 States namely: Abia, Akwa Ibom, Cross River, Rivers, Bayelsa, Imo, Anambra, Ebonyi, Enugu, Delta, Edo, Ondo, Ogun, Osun, Oyo, Ekiti, Benue, Kwara, Kogi, Nasarawa, Plateau, Taraba, Adamawa and Kaduna states.
Under the Growth Enhancement Support (GES) Scheme, he said 15,353 farmers benefitted from the scheme in 2013 and 30,000 farmers in 2014.