Mapping out strategies to resuscitate Nigeria’s oil palm industry

For Nigeria, it was a change of economic baton from the largest producer of oil palm in the 1950s and 1960s, to crude oil exporter from the 1970s up till this moment. Although, the production and exportation of crude oil, mostly produced also from oil palm belt of Nigeria, have brought into the country several trillion of dollars since the 1970s. The most important thing is that oil palm production is better renewable, sustainable and therefore, dependable economically.

Although, there have been calls, from different quarters, on the Nigeria’s government to diversify its economy, as a matter of policy and commitment, from non-renewable and less dependable status that currently puts the nation’s economy senselessly dependable on crude oil production instead of more prosperous and enduring agricultural economy.

However, it seems good news is on the way since some government agencies, particularly the institutions of higher learning, mainly agriculture and technology-based institutions and corporate organisations, have set the ball rolling; they have, though in some cases with the support of government, taken bold steps in correcting many economic anomalies that impede the country in the comity of prosperous and buoyant nations of the world.

For instance, consciousness has been re-ignited in agricultural production and economy with the proposal and implementation of some issues-based ideas and projects put together in order to resusciatate agriculture and development of its entire value chain in such a way that will allow all-round and effective growth in employment rate, value creation and earnings.

This is the economic propeller that prompted the FUNAAB to invest in oil palm plantation, production, processing and packaging as part of several agriculture-based efforts and strategies mapping out to sustain several agriculture projects of the Federal Ministry of Agriculture and Rural Development as well as some states’ ministries of agriculture.

FUNAAB has long thought of investing massively in all fields of agriculture, having mandated to make agriculture its focal point, with a mindset of combining training, research and extension services to help not only the immediate environment, but the whole country; promoting academic and economic activities that will train, employ and create value as well as wealth for the country.

Even as far back as 2002, FUNAAB has started experimenting its prowess in oil palm with the acquisition of rented oil palm plantations at Elere-Adubi and Ado-Odo, both in Ewekoro and Ado-Odo/Ota local governments of Ogun State, to undertake field demonstrations, execute practicals for students and researches on oil palm production and development of its entire value chain.

Having identified oil palm as one most economic crops whose parts, from the leaves, stems, fruits and even by-product extrated from processed oil farm, are economical, coupled with feats which some of the then third world countries like Malaysia, Indonesia have achieved, FUNAAB strategised to bring back the lost glory of Nigeria through oil palm production.

Speaking exclusively with BusinessDay, Oluseye Ogunlami, FUNAAB principal farm manager, plantations, disclosed that desire to overhaul the agricultural sector, develop young Nigerians in the entire value chain oil palm production and up internally-generated revenue, since what university gets from Federal Government is not sufficient to cater for many needs, prompted the establishment of oil palm plantations among others by the university.

He said: “As a unique university, unique in the sense that we are one of three universities of agriculture in the country specifically created for the purpose of deepening agriculture, we are expected to provide a platform for training in all aspects of agriculture and giving the economic importance of oil palm, we cannot, but invest in it.

“Oil palm is such an economic tree that virtually every part is of economic value, the leaves, the stems, fruits and what we call by-products from processing oil palm is equally economical. We can sell and get money. So, that is why the university is investing in it.

“Apart from that, presently government is not providing sufficient fund to really take care of the needs of the universities and there is always need to look at internally-generated revenue source of revenue.

“For us in FUNAAB, the investment is a two-way thing; the tripodal mindset of the university is training, research and extension services, so we combine the three in focus. Some of 100 level and 200 level students come over there to do their practicals and they are exposed to virtually every aspect of the production, from nursery to field maintenance and processing in batches as practical composite.

“There are some Post-graduate students that do research and thesis, some of them come over there; those who have projects related to oil palm production. Some Food Science and Technology students carry out industrial training on oil palm production and processing.”

When Ogunlami was asked on the capacity of FUNAAB oil palm plantations and processing plant, he said: “Actually, when we started producing oil palm as far back as 2002, at that time the university rented an existing oil palm plantation that was already at the production level, so, it was leased for about 10 years; 2002 -2012, at Elere-Adubi and Ado-Odo.

“We went there and started producing and bringing it down, we did that between 2002-2012.

Around 2008, we started our own plantation right on campus, 73 hectares at present, with possible expansion at an average of 15-20 hectares per annum. Oil palm has has a long gestation period since it takes 4-5 years before production, the first fruits were harvested around 2012.

“We are increasing gradually. As a matter of policy, the university disengaged from rented plantations in 2012. Now, we are producing about 3,000 litres annually with expansion; we are expanding that farm by 15-20 hectares annually, because we are already having customers coming and we couldn’t meet up with the demand.

“Actually, the technology is not new as such. Normally, when you have fairly large size of farm, we cannot depend on local, traditional method. Apart from being crude, the quantity of oil, the extraction is very low, now with these machines that are there, we are able to increase extraction rate, you get more oil from the fruits than what you get with these traditional processes.

“In Malaysia, they have gone far in terms of oil processing. We are carrying out continous researches on it, but it is not a matter of research only because there are available technologies to really exploit all these, the issue is the quantity we are producing is not sufficient for that at present.

“But of course, by the time we are able to increase the quantity and plantation into full production, definitely, we will look into processing further. When you bleach palm oil further, you will get the vegetable oil. Apart from that, there are numbers of products you can get palm oil processed further into fat, oleum and some products used in industries.

“For now, because of our level of production we only stay at that level, but with time, we will gradually look into those areas. It is just early this year we put these machines in place and started working. Presently, what we are getting is palm oil, palm kernel is the next stage, when you start cracking you get the palm nut and process to palm kernel oil used for soap making.

“Palm kernel cakes used for livestocks, shells are used for fuel, fibre from the fruits used for foot mats, fuel, very soon we will start exploiting those aspects.”

Considering the multi-faceted economic significance of oil palm, Akinwunmi Adesina, minister of agriculture and rural development, recently said that oil palm value chain activities were capable of adding 20 million metric tons of food to national domestic supply by 2015, and generating 3.5 million jobs within the various commodities value chains if well pursued.

Why then has the Federal Government not yielded to the communique issued at the end of the first international palm produce conference, which was held last December in Uyo, Akwa-Ibom State, calling for the establishment of special fund for oil palm development at 5-6 percent interest rate, to be managed by Bank of Agriculture and Bank of Industry?

Razaq Ayinla