18.12.2023 (The Nation) - Malaysian experts are partnering Nigeria stakeholders to increase production of oil palm estimated at 1.4 million metric tonnes (MT)  yearly.

 This figure is considered low with the nation’s demand for palm oil standing at three million MT. 

One of the goals of the team of experts, which consists of Group Managing and founder, Agrinexus, and visiting Professor, University of Calabar, Shermal Perera, is to work with local stakeholders to help the industry close Nigeria’s 1.6 million MTproduction gap.

Nigeria spends N500 billion yearly on imports to fill the deficit in production.

Speaking in Lagos, Perera expressed dismay that the production had failed to meet demand.

He attributed the decline to lack of skilled managers in oil palm plantations and called for measures to be put in place to address the issue and strategies to be formulated to ensure the competitiveness and sustainability of the industry.

According to him, the oil palm plantation sector relies heavily on skilled professionals for maintenance activities.

To this end, he stressed the need for innovations in the mechanisation and automation technologies to fulfill the need of the oil palm plantation sector.

He said his organisation was working with experts to bring into the country the  Incorporated Society of Planters (ISP)  established in Malaysia to provide knowledge on plantation management and to enhance capability and understanding in the oil palm industry.

According to him, ISP will be launched next year to address the issue of labour shortage in the country’s oil palm plantation sector, minimise operational cost and improve the yield of palm oil which in turn will increase the income of players including the smallholders. According to him, ISP has more than 6,000 members. (Local & Overseas) and mainly catered for those who work in the plantation industry as executives and above.

The Managing Director, Foremost Development Services Limited and Advisor to Plantation Owners Forum of Nigeria (POFON), Mr Fatai Afolabi, indicated that all hands must be on deck to promote increased production to save the industry.

According to him, the production growth of palm oil in Nigeria has stalled in recent years, but farmers are now looking to replant or expand plantations amid rising prices.

He said ISP, established in 1919, will promote general interests of the planting profession.

He said the society seeks to improve technical and managerial knowledge of planters.

Compared to Nigeria that has less than 800,000 hectares of cultivated oil palm, Malaysia has 5.6 million hectares.

Nigeria’s palm oil imports from Malaysia have surged by 65.3 percent in the first nine months of this year , according to data from the Malaysian Palm Oil Council.

Between January and September this year , Nigeria’s palm oil imports from Malaysia increased to 234,324 MT, up from 141,786 MT during the same period in 2022, marking a substantial increase of 92,538 MT.

In 2022, the country imported 227,035 MT of crude palm oil from Malaysia.

To boost local crude palm oil production, the federal government listed crude palm oil on the 41 items restricted from forex access.

https://thenationonlineng.net/malaysia-nigeria-to-close-1-6m-tonnes-palm-oil-gap/