14.03.2018 (New Telegraph Newspaper) - As Council of Palm Oil Producing Countries (CPOP) plans to consider implementing policies related to palm oil-based jet fuel, Nigeria’s palm oil production is forecast to reach 1.03 million tons (N893.6 billion) in 2018.

The produce is valued at N893.6 billion ($2.48 billion) as one metric ton of the product is currently $2,410 at the global market.

The latest survey released by the Managing Director of Financial Derivatives Company Limited, Bismarck J. Rewane, indicated that palm oil consumption in Nigeria was about 1.34 million metric tons. He noted the major producers of the produce were Akwa Ibom, Cross River, Rivers and Abia states.

The managing director added that total global production for 2017/2018 was forecast to reach 69.4 million tons.

 Rewane said that Nigeria’s market share was 1.5 per cent, while the country ranked the fifth producer with Indonesia leading with 38.5 million tons, Malaysia, 20.5 million tons; Thailand, 2.7 million tons and Colombia, 1.62 million tons. Meanwhile, Nigeria would still need to import additional 1.7 million tons this year to meet manufacturing firms’ demand.

About 90 per cent of palm oil is consumed locally, while only 10 per cent is used as a raw material by soap and other non-foods industries.

Consequently, the country has become one of the top five markets for Indonesian crude palm oil in the last two years. Nigeria has been facing low production in the last one decade.

Investigation by this newspaper showed that the price of the commodity, which was $979 per ton last June, has climbed to $2,410 as at March, 2018. It would be recalled that the country took delivery of 45,000 tons of the produce last week at the Lagos Port Complex – from Susan Victory and Desert Spring.

Findings by this newspaper from the Nigerian Ports Authority (NPA)’s shipping position showed that port took delivery of 600,000 tons in the last one year to consolidate the 970,000 tons produced by the country in 2017.

Also, in 2014 and 2015, the country imported 550,000 tons and 570,000 tons respectively. The imports, which were ferried through the Lagos Port Complex, were valued at $840 million.

Last year, the World Economic Forum (WEF) said that palm oil market would expand to an estimated $88 billion a year by 2022. It would be recalled that in 2016, Indonesia reduced its export tax for crude palm oil between 0 and 22.5 per cent to encourage importers from Nigeria and other countries to buy more.