Farmers have cried out over the N60 billion spent on palm oil import and urged the government to use the industry to create employment and alleviate the high level of poverty in the country.
For instance, figures from the Nigeria Nigerian Ports Authority (NPA) and National Bureau of Statistics (NBS) have shown that the inflows of palm oil imports through the seaports stand at N61.9billion.
Shipping data from the NPA also show that the country took delivery of 19, 200 tonnes of the produce from Rayyan I laden with 10,200 tonnes; Chem Lyra, 5,000 tonnes and Easterly AS Oliva, 4,000 tonnes.
Speaking at a forum organised by Malaysia External Trade Development Corporation (MATRADE) in Lagos, the Managing Director, Foremost Development Services Limited and Advisor to Plantation Owners Forum of Nigeria (POFON), Mr Fatai Afolabi, urged the government to use the palm oil industry to create employment and reduce poverty.
He said 40 per cent of palm oil plantations in Malaysia were owned or farmed by small-scale farmers, whereas it was over 70 per cent small-scale owned in Nigeria.
According to him, “As palm oil had been a major factor in Malaysia, reducing poverty from 50 per cent in the 1960s, down to less than five per cent. Nigeria can also achieve poverty alleviation through the industry.”
Unlike Malaysia, he disclosed, Nigeria has just a little over 600,000 hectares under improved oil palm planting, with a less-established oil palm industry
Last month, investigation revealed that Winter discharged 8,200 tonnes, Admore, 19,000tonnes and Golden Camellia, 9,700tonnes, while Atlantik Miracle and Harbour Progress offloaded 5,300 tonnes and 5,000 tonnes in May this year.
The imports declined 49.1 percent from $186.7million in 2021 in the same period due to forex restriction by the Central Bank of Nigeria (CBN), high price of the commodity which has reached $1,121.33 per tonnes in the global market and the Ukraine-Russia war.
The country imported $351million worth of the produce in 2020 from Malaysia, Indonesia, Singapore, Colombia and Niger but the imports was reduced to $186.7million in 2021
In 2020, Nigeria imported $351million, making it the 23rd largest importer of palm oil in the world as imports from Malaysia was $242million or 69 per cent; Singapore, $50.8million or 14.5 per cent; Indonesia, $44.4million or 12.7 per cent; Niger, $7.35 million or 2 per cent and Colombia, $3.75million or 1.06 per cent
Findings also revealed that Lagos Port Complex took delivery of 66,400 tonnes from eight vessels between April and the end this month.
In the first quarter of this year, NBS disclosed that palm oil from Malaysia into the country was valued at ?13.5billion, leading to a 72.1 per cent rise in less than four months.
Palm importation by Nigeria has declined to $186.7million or 46.9 percent in the last two years following import restriction by the Federal Government and high price.
It would be recalled that the Central Bank of Nigeria (CBN) had said that the country would have been earning approximately $20 billion annually from processing of palm oil, that is, half of the 2022 federal budget.
The Governor of CBN, Mr Godwin Emefiele said over $500million was being spent annually on the importation of palm oil.
Emefiele recalled that in the late 50s and 60s, Nigeria was not only the world’s leading producer of palm oil but was the largest exporter of palm oil, accounting for close to 40 per cent of the global market share.
He noted: “We are determined to change this narrative.We intend to support improved production of palm oil to meet not only the domestic needs of the market but to also increase our exports to improve our forex earnings.
“As part of our Anchor Borrowers Programme (ABP) and Commercial Agriculture Credit Scheme (CACS), the CBN will work with large corporate stakeholders and smallholder farmers to ensure the availability of quality seeds for this year’s planting season.”
The governor stated that with the help of the state governments, Nigeria could reach self-sufficiency in palm oil between 2022 and 2024 and ultimately overtake Thailand and Columbia to become the third-largest producer over the next few years.