25/05/2008 (Business Day Online) - The Minister of Commerce and Industry, Charles Ugwu has threatened to lift ban on the importation of palm oil if the stakeholders fail to meet local consumption.

Ugwu said at stakeholders workshop organised by the ministry in Lagos Thursday that government was worried about the short fall in local consumption and industrial needs.

According to the minister, the threat had become imperative but government’s concern is that such move will kill the local industry, especially the industries that depend on palm oil for raw materials. He said that although the sector was faced with problems of adulteration, poor harvest, post-harvest handling technology, among others, the stakeholders should come up with a plan that would boost production.

He decried that the country’s 2.3 million hectare of palm trees are in the wild because they are too tall to harvest, adding that the stakeholders should embark on aggressive planting of hybrid seedlings as a way forward.

The minister reiterated that Nigeria’s palm kernel cake was the most sought after at the international market, but it was banned due to adulteration. He urged the stakeholders to be self regulatory to flush out the bad elements in their midst.

"Product adulteration does not benefit the market and the economy in the long run," he said.

Speaking, Elizabeth Emuren, Permanent Secretary in the Ministry of Commerce and Industry, said the aim of the workshop was to mobilise the stakeholders to adhere to practices that would enhance local and export needs.

She said that the government had set up Export Commodities Coordinating Committee to encourage the various associations to harmonise the quality of produce and restore confidence in the Nigeria commodity.

In his remarks, Patrick Udofia, president, National Palm Produce Association of Nigeria (NPPAN), said Malaysia that adopted Nigeria’s palm kernel is presently producing 15 million tonnes of palm oil, Indonesia (14 million tonnes) while Nigeria produces 0.8 million tonnes.

Effiong Baseey, national chairman, National Palm Oil Producers Association of Nigeria observed that government should assist the farmers with hybrid seedlings, tractors and soft loans to boost production.