Read at 3 different speeds

Palm oil pressure - 22nd October 2021

As part of its drive to diversify away from petroleum and create employment, Nigeria is investing heavily in its palm oil production.

Palm oil is found in many foodstuffs and is the basis of a variety of cosmetics. Having once been self-sufficient, Nigeria now finds itself having to import much of its palm oil, straining foreign currency reserves which have already been depleted by a drop in crude oil prices.

Providing financial assistance to palm oil producers by offering central bank loans, Nigeria hopes to rebuild its ailing industry.

Graham Hefer, managing director of the Okomu Oil Company, outlines their experience.

Graham Hefer: "We’ve been privileged enough to, to get a loan, it has certainly helped us, it has, it has helped us to develop our new extension."

Large enterprises, such as Okomu Oil, contribute 30 percent of Nigeria's palm oil output, leaving small scale producers to make up the outstanding 70 percent. Nevertheless, they are unable to obtain the central bank's assistance available to the bigger players, and with Nigeria facing an annual shortfall of some 500,000 tonnes of palm oil, the smaller producers are calling for more aid.

Micah Ojo, who runs a small farm that also mills the palm, explains his predicament.

Micah Ojo: "At the end of the day after we filled in forms, whatever we did, at the end of the day the loan never came to us. It does not come down to the real local farmers, that is the problem we are facing."

Facing heavy criticism across the globe for its environmental record of deforestation and land grabbing as well as the exploitation of labourers, the palm industry has few supporters. Ojo, however, is one, and he sees the positives in job creation, generating much needed funds.

Micah Ojo: "We need the government to come to our aid to assist us so that we can also give back to society by employing more workers then they can feed their families and others."