18/06/2024 (Puch) - The National Palm Produce Association of Nigeria has revealed that the country could save a staggering $600m annually by investing in the domestic palm oil sector.

This was disclosed by the President of NPPAN, Alphonsus Inyang in Abuja on Tuesday, NAN reports.

Inyang said Nigeria’s current reliance on palm oil imports has created a substantial financial drain that could be mitigated by revitalising the domestic palm oil sector.

“Nigeria spends 600 million dollars on palm oil importation annually. The money could be saved and injected into the economy if successive governments gave the palm oil sub-sector due attention.

Inyang noted that this investment could significantly bolster the nation’s economy, marking a pivotal shift from importing to exporting palm oil products.

Historically, Nigeria was a dominant force in palm oil production, leading the global market in the 1960s with over 60 per cent of the world’s palm oil.

He stated that due to neglect and lack of strategic investment in the sector by successive governments, Nigeria’s production capacity has dwindled, adding that the country ranks fifth globally in palm oil production, lagging behind Indonesia, Malaysia, Thailand, and Colombia.

Inyang noted that Nigeria currently consumes approximately three million metric tons of palm oil annually while producing less than half of this demand domestically.

He proposed a comprehensive strategy to revitalise the sector through the National Oil Palm Strategy Development Plan.

This plan aims to develop 250,000 hectares of oil palm plantations annually, which could bridge the deficit in production within four years.

“At the moment, the country occupies the fifth position in the league of palm oil-producing countries after Indonesia, Malaysia, Thailand and Colombia.

“Nigeria may even lose the position to smaller countries who are investing heavily in the sector.

“Indonesia occupies the first position, producing 50 million metric tons, Malaysia second with 19 million metric tons, Thailand 3.28 million and Colombia 1.9 million metric tons.

He underscored the importance of government support in providing essential inputs such as seedlings, fertilizers, logistics, and implements to achieve this ambitious goal.

The implementation of this plan, according to Inyang, not only promises to meet domestic demand but also to position Nigeria as a competitive player in the global palm oil market once again.

In response to these challenges, NPPAN has called on the Federal Ministry of Agriculture and Food Security to prioritize and support local palm oil producers.

Inyang stressed that with the necessary governmental assistance, including policy frameworks and financial incentives, Nigeria has the potential to not only meet its domestic demand but also become a net exporter of palm oil.

This transformation, he believes, will not only create economic opportunities and reduce dependency on imports but also foster agricultural innovation and employment across the nation

“Our members can plant up to 250,000 hectares per year through the association’s National Oil Palm Strategy Development Plan; all we want are inputs.

“The government does not need to give and develop land for us, we need seedlings, fertilisers, logistics and implements to close this gap within four years.

“We will also create new millionaires in 28 states of the federation,” he said.

https://punchng.com/investing-in-palm-oil-could-save-nigeria-600m-annually-producers/