New Telegraph

Palm Oil: N53bn import threatens FG’s self-sufficiency target

Despite forex restriction by the Central Bank of Nigeria (CBN), a total of 63,938 tonnes of crude palm oil valued at N53billion ($76.05million) has been imported through the Lagos port between October and December 2022 by manufacturing firms. Some of the manufacturing firms that import palm oil include Flour Mills of Nigeria, Maahika Nigeria Limited, PZ Wilmar Limited, Wetheral Oil among others. The steady importation, it was gathered, had been threatening Federal Government’s effort to make the country self-sufficient in palm oil production by 2024. CBN had said that the country 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.

However, data by the Nigerian Ports Authority (NPA)’s shipping position revealed that of the 63, 938 tonnes offloaded at the seaports, Capella discharged 18,051tonnes at Rivers Port and 10,000 tonnes at Josepdam, Tincan Island Port. At the Apapa Bulk Terminal Limited (ABTL), Lagos Port, Fairchem Tiger arrived on Monday this week with 4,000 tonnes, while Bruno offloaded 19,887tonnes to ENL in October and Marie S, 12,000 tonnes at ABTL. Findings revealed that the price of the commodity had reached $1,200 from $720 per tonne in the global market. However, Fitch Ratings said that it expected average crude palm oil prices to be significantly lower in 2023, as industry output would likely to be higher. It noted: “We assume Malaysian benchmark crude palm oil prices to average $800/tonne in 2023, compared with $1,200/tonne in 2022.” Last year, 425, 000 tonnes of palm oil valued at $445.47million were imported into the country from the estimated total $50.8 billion sold globally in 2021. Overall, the value of palm oil imports has accelerated by 51per cent for all importing countries since 2017. It was learnt that on year over year, globally imported palm oil increased by 50 per cent from $33.8 billion during 2020.

Statistics by NPA and National Bureau of Statistics (NBS) revealed that the inflows of palm oil imports through the seaports had reached N61.9billion ($95.2million). It was revealed that Lagos Port Complex took delivery of 66,400 tonnes from eight vessels between April and August 2022. Also, in the first quarter of 2022, NBS explained that palm oil from Malaysia into the country was valued at ₦13.5billion, leading to 72.1 per cent rise in less than four months. In August, the shipping data revealed that the country took delivery of 19, 200 tonnes of the produce from Rayyan I laden with 10,200 tonnes; Chem Lyra, 5,000tonnes and Easterly AS Oliva, 4,000 tonnes. Also in July, 2022, 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, 2022 respectively. 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. 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, had 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 stressed that with the help of the state governments; Nigeria could reach selfsufficiency in palm oil between 2022 and 2024 and ultimately overtake Thailand and Columbia to become the third-largest producer over the next few years.

Please follow and like us:

Read Previous

Q3’22 GDP: ‘FG must fix macroeconomic headwinds bedevilling economy’

Read Next

Kalu condoles with Wamakko over wife’s demise

Leave a Reply

Your email address will not be published. Required fields are marked *