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<\/figure>\n\n\n\nAvailable data indicate that Nigeria\u2019s yearly\nlocal demand for palm oil is about 1.34 million tonnes while it produces about\n1.015 million tonnes. This leaves a supply gap or deficit of about 325,000\nmetric tonnes, which if translated to money, at the current market price of\nabout N769.33 per tonne, stands at about N90 billion per annum or N270 billion\nin the past three years. This is money gone down the drains, given our\npotential in this palm oil business.<\/p>\n\n\n\n
The decline in oil palm production in Nigeria is clearly\nlinked to the history of the development of the Nigerian economy. The advent of\ncrude oil exports in the 1960s following from the discovery of crude oil in\ncommercial quantity in Oloibiri in current Bayelsa State set the pace for the\nrelegation of oil palm production in particular and the agricultural sector in\ngeneral in the generation of foreign exchange for national sustenance. The\ncountry abandoned agriculture because crude oil money comes in quite easier in\ncontrast to the rigour and stress associated with production and foreign\nexchange earnings through agriculture. This national attitude towards\nagriculture led to the relegation of the production of other cash crops such as\ncocoa, groundnut, rubber and cotton amongst others such that the country now\ndepends to a very large extent on the crude oil sector for its survival. Hence,\nthe current mono-cultural economy has been subjected to periodic shocks as a\nconsequence of the volatility often experienced in the international market for\ncrude oil. <\/p>\n\n\n\n
This situation has currently stagnated the growth\nof the palm produce industry such that many palm oil processing mills across\nthe country have been shut down and others operating at less than full capacity\ngiven the availability of easier means of making money and earning a livelihood\nin other sectors such as information and communication technology (ICT), oil\nand gas and the financial services more appealing to most young men. With this\nbackground, Nigeria currently ranks fifth in oil palm production worldwide\nfalling from its pre-independence first position. It lags behind Indonesia,\nwhich in 2019 is recorded to be the largest producer of palm oil with 43\nmillion metric tonnes followed by Malaysia with 21 million metric tonnes.\nOthers are Thailand with 3 million metric tonnes and Colombia with 1.68 million\nmetric tonnes. <\/p>\n\n\n\n
Nigeria would have to take some positive steps to\nregain its lost glory in the production of palm oil globally. This period of\neconomic uncertainty is the best time to do that. With the frequent volatility\nbeing experienced in the global crude oil market and the need for the country\nto find alternative ways of earning foreign exchange and creating jobs for its\nteeming unemployed youths, the development of increased oil palm production holds\nthe key for increased diversification of the Nigerian economy. <\/p>\n\n\n\n First, government would have to make more land\navailable for the cultivation of oil palm across the oil palm belt of Abia,\nAkwa Ibom, Delta, Edo, Imo and Ondo states among others. The state governments\nconcerned would need to work closely with the federal authorities to ensure\nthat this industry is revived so that Nigeria can take its rightful place\nglobally in this thriving industry. Second, effort should be made to adopt new\nbreeds of oil palm trees. This involves strong dependence on breakthroughs in\noil palm breeding technology where the new oil palm seedlings have higher\nyields per hectare of cultivation. That is a sure way of enhancing increased\nproduction levels. Third, and akin to the second, is the use of modern\ntechnology in the processing of palm fruits for higher volume extraction from\nharvests. This involves having adequate financial investments by both the\nfederal and state governments in modern oil mills. <\/p>\n\n\n\n With these\nsteps, the country can erase this unwholesome loss of about N90 billion per\nannum and thus meet local palm oil needs. This will also return the country to\nits previous status of a net exporter of palm oil. These steps are very\ncritical since the fortunes of the crude oil market are dwindling and unless\nthe diversification programme is pursued vigorously, as in this case, the\ncountry may experience tougher times ahead.<\/p>\n","protected":false},"excerpt":{"rendered":" By Editorial Board Guardian Newspaper Nigeria\u2019s palm oil industry represents a classic case of a lost glory in the country\u2019s quest for economic development. The country, which was reputed to be the largest producer of…<\/p>\n","protected":false},"author":1,"featured_media":690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[48,176],"class_list":["post-689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-nigeria","tag-palm-oil"],"jetpack_publicize_connections":[],"yoast_head":"\n![\"\"](\"https:\/\/i0.wp.com\/towncryyers.com\/wp-content\/uploads\/2020\/03\/csm_palmoil_4__2.1_8ad01b67cf.jpg?resize=800%2C470&ssl=1\")
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