NEPC proposes increased investment in palm oil, other agro-produce to diversify economy

Following the dwindling crude oil price and its negative effect on Nigeria’s economy, the Nigerian Export Promotion Council (NEPC), an agency of government saddled with the responsibility of promoting non-oil export, has canvassed for increased investment in agriculture, especially palm oil production, to diversify the country’s economy.

Olusegun Awolowo, executive director/CEO, NEPC, who made this call at a workshop on “Palm Oil Derivatives” organised by the Enugu Zonal office of the Council, observed that Nigeria was well endowed with abundant agricultural resources, from which meaningful industrial investments could be predicated.

The NEPC boss, who was represented at the workshop by Esther Ikporah, zonal controller, Enugu zonal office of the Council, explained that palm oil was a highly sought-after commodity world over, because of its varied uses.

He encouraged entrepreneurs, especially the small and medium entrepreneurs (SMEs) to explore the potentials inherent in it, especially at this time the nation is in dire need of a breakthrough in economic diversification from her mono-economic dependence on crude oil export to non–oil export, of various products in commercial quantity and of high quality, that is begging for economic development.

Emmanuel Obi of Emmerson Technology Limited, one of the resource persons at the forum, emphasised that the global slump in crude oil sales presently, informed the need for diversification of the economy.

He explained that palm produce business in Nigeria has taken a downward spiral since the discovery of crude oil in the late 1950’s and subsequent commercial exploration and crude oil sales from the 1970’s.

Obi in his paper titled, “Diversification of palm oil for sustainable trade export revenue stream”, revealed that demand for palm oil grew by 4.5 metric tons (Mt) per annum, between 1970 and 2014, a trend he observed, should continue in the years to come, both to satisfy food requirements and for bio-fuels.

“According to the Food and Agriculture Organisation (FAO) and the Organisation for Economic Cooperation and Development (OECD) 2010/2019 agricultural forecast, global consumption of vegetable oil will increase by nearly 30 percent within the period.

“Growth will come mainly from developing countries, in view of the population growth and rise in average income. As such, it will increase by 44 percent in non-OECD countries. Compared with OECD countries, the consumption of oil per capita in developing countries is four times less (for example 59.3 kilos per capita per year in the EU and 13.4 kilos in India or 12.5 kilos in Nigeria).

“Palm oil is the most traded oil in the world: 90 percent of global production is traded. Although in terms of production it is almost level pegging with soya bean, its trade is almost three times higher. “Trade increased from 3.78 million tons (Mt) in 1980 to 36.5 Mt in 2010. Malaysia and Indonesia represented more than 90 percent of 2010 exports. Far, far behind in third place lies Papua New Guinea with 500,000 tons exported in 2010”, he affirmed.

The workshop, which was targeted at SMEs, was organized to create awareness on palm oil, which is one of Nigeria’s natural resources and the corresponding investment opportunities.