Through the Anchor Borrowers Programme (ABP), launched in 2015, among other intervention schemes, the CBN has revolutionised agricultural practice whereby smallholder farmers who hitherto could not approach commercial banks for loans, are now being granted credit facilities in the forms of inputs like seedlings, fertilizer and herbicides. Godwin Emefiele, whom analysts commend for his visionary leadership in making Nigeria great again, especially in the areas of agriculture and other critical sectors.
Meeting local demand for both the Technical Palm Oil (TPO) used in industry and Special Palm Oil (SPO) used by households requires about $60 billion per annualĪlthough the consequences of the global supply deficit in palm oil had started to bite especially in economies around the world particularly those who make use of the commodity in food and cosmetics manufacturing, the consequence has been little or minimal in Nigeria.Īll accolades have gone to the CBN Governor, Mr. Oil palm production per annum is currently 1,250,000 million metric tons (MT) with current demand at 2,500,00 MT per annum. It is further weakened by the inefficient synergy between stakeholders in the value chain and the inability of the small millers to meet industrial quality, quantity and timeliness of delivery among others. The country’s oil palm industry is among other things plagued by the lack of proper scaling of milling technology which result in sub-optimal output, according to the CBN. The stakeholders, in a communiqué issued at the end of a 2-day workshop and policy dialogue on “Pathways to Inclusive Policies and Climate Resilient Oil Palm Development in Nigeria”, which was organised by Solidaridad West Africa (SWA), further called on the government to deliberately dedicate a minimum of 60 per cent of the agriculture budget to capital projects to encourage diversification of the economy. In Nigeria, stakeholders believed that the oil palm value chain had enormous potential to restore the country back as a major producer controlling about 80 per cent of the market share but the lack of serious policy intervention had sidelined other non-oil segments.Īt a recent summit of operators in the oil palm sector, the stakeholders had pointed out that the Nigerian oil palm sub-sector had nose-dived from its enviable position as a top export commodity income earner in the 1960s adding that despite being produced in 25 states of the federation, over $500 million goes into importation of palm oil annually, therefore restricting the country to the unenviable 5th producer of the commodity globally. But, in spite of its huge potential, past administrations had neglected the oil palm development and agriculture in particular. Ordinarily, the global supply gaps in palm oil ought to have put at a vantage position if the sector had been given the required attention over time. The development has resulted in global supply deficit given that palm oil remained the most consumed vegetable oil in the world as the commodity is used heavily in processed food including instant noodles and baked goods as well as present in other consumer products, namely personal care items and cosmetics. The country’s decision to halt further exports in the face of domestic shortages had reportedly pushed vegetable oil prices to new highs, further tightening a market already unsettled due to the war in Ukraine and global warming.
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