Nigeria loses N94bn annually to oil palm import, says Don

Prof. Kehinde Owolarafe of the Department of Agriculture and Environmental Engineering, Obafemi Awolowo University (OAU), Ile-Ife, on Tuesday, said that Nigeria loses N94 billion annually to palm oil importation.

Owolarafe said this at a one day sensitisation workshop for oil palm producers, processors, distributors, marketers, retailers and users, on Tuesday in Osogbo.

The News Agency of Nigeria (NAN) reports that the workshop was organised by the Standards Organisation of Nigeria (SON), with the theme ” Promoting Palm Oil Value Chain Via Standardisation.

According to the don, between 1920 and 1960, Nigeria was the leading producer and exporter of palm oil in the world.

“But sadly, Indonesia and Malaysia now lead in the production of palm oil in the whole world.

“Though there has been an increase in production of oil palm in the last few years, but Nigeria at present imports palm oil to the tune of about one million metric tonnes to supplement the local production in order to meet the high demand.

“Indonesia and Malaysia produce in tens of million tonnes, while Nigeria is still struggling to reach two million tonnes.

” Currently, Nigeria, which occupied the premier position has been dropped to the fifth position,” he said.

Owolarafe listed some of the factors resulting in the low production of palm oil in the country to include declining productivity of oil palm plantations due to old age.

Other factors, he said were lack of appropriate technologies for palm fruit processing and unfavourable government policies as regards agriculture in general, among others.

The don said that there was urgent need to improve the quality and quantity of palm oil production in the country to meet the international standards in order for export.

Owolarafe also warned producers and marketers of palm oil against adulteration, adding that this could be injurious to health of consumers.

” We have to join hands together to ensure production of high quality palm oil.

” The same climate we have is what Malaysia and Indonesia have and they are doing well.

“We need to restructure the palm oil industry in Nigeria”, he said.

In his remarks, Dr Ifeanyi Okeke, the Director-General, SON, said that the objective of the workshop was to create awareness for all stakeholders.

He explained that the sensitisation was particularly for the palm oil producers, distributors, marketers, retailers and users on the need to conform to the industrial standards.

Okeke, who was represented by Mrs Ethan Talatu, Southwest Director of SON, said the sensitisation was to ensure quality standard throughout the production process which would in turn translate to high income for all on the value chain.

The D-G further said that the palm oil industry had the prospects of providing employment for millions of unskilled and semi-skilled people.

“As demonstrated in other economies, with proper focus on production of commodities of large scale commercial values, improvement in the production of palm oil can effectively mitigate the poverty level in Nigeria” he said. (NAN)