Nigeria is planning to generate a total of N539.28 billion ($963 million) yearly from one million tonnes of palm oil, a report by the Federal Government has indicated. Currently, the country produces 1.2 million tonnes yearly, leaving a deficit of one million tonnes. In the report by the Federal Ministry of Industry, Trade and Investment (FMITI), Nigeria’s investment in oil palm market opportunity is estimated at $1 billion. The report added that Nigeria was among the top five largest producer of oil palm still struggling to meet half of domestic demand.
Based on the deficit gap in the local palm oil supply, the report stressed that Nigeria was spending about $500 million yearly to import the produce, adding that the huge forex spent annually on the palm oil had affected the economy. Also, the report explained that under optimum conditions, production could reach 40 tonnes of fresh fruit bunches per hectare, which corresponds to nine tonnes of palm oil, noting that one hectare of land could support 150 palm trees.
The report said that fresh fruit bunches production was 10 million tonnes; yield per hectare for CPO, 2.55 tonnes/ha; annual CPO demand, 2.2 million tonnes; local CPO production, 1.2 million tonnes current supply gap, one tonne; annual foreign spend on oil palm importation, $500 million and price of CPO, $963/ tonne. On investment funding, the ministry said that the recent investments and increased government interest indicated that Nigeria’s oil palm industry was a desirable place to invest. According to the report, Fayus Group, in collaboration with Shine Bridge Global (SBG) and Africa Global Schaffer (AfGS), had teamed up to invest $159 million in Nigeria’s oil palm and cassava value chains over three years.