Government Policy and the Nigerian palm oil processing industry development opportunities

Nigeria ranks third in the world in terms of land area planted with oil palm, but it is only the fifth largest palm oil producer due to low yields. Yield is much lower in Africa than in Southeast Asia for various reasons, including climate and infrastructural limitations and a predominantly smallholder approach to production. In order to promote the development of the Nigerian palm oil processing industry, the Nigerian government has formulated a series of policies to develop the palm oil industry.

1) Nigeria plans to invest 180 billion naira ($500 million) to increase its palm oil production from around 600,000 tons a year to 5 million tons a year by 2027.

(The policy, which would double oil palm acreage from 3 million to 6 million hectares, aims to meet all of the country’s domestic palm oil demand by 2027. Last year Nigeria spent about $500 million importing 600,000 tons of palm oil.)

2)Nigerian Government encouraged the construction of a palm oil mills in every continent of Nigeria.

3)Nigerian Government encouraged the banks to lend to small farmers. Meanwhile, the Nigerian Government said it will encourage investment by offering low interest loans to farmers for oil palm cultivation and erecting barriers on crude palm oil imports.

One of oil palm plantations in Nigeria

In addition to the government's pro-farm policies, Nigeria has other advantages to promote the development of the Nigerian palm oil processing industry.

1, Big profit margins, while the product is simple to produce. (Palm oil is one of the world's most produced and consumed oils. This cheap, production-efficient and highly stable oil is used in a wide variety of food, cosmetic and hygiene products, and can be used as source for bio-fuel or biodiesel. )

Palm oil products have a wide range of USES

2, Large and increasing international demand and domestic demand;

Palm oil production and consumption in Nigeria from 2011/2012 to 2018/2019 (in 1,000 metric tons)

3, Crude palm oil (CPO) production costs in Nigeria are the lowest worldwide

4, Higher rates of productivity compared to other edible oil products;

5, Most investors are wise, they choose to buy mature palm oil processing machine to extract palm oil;

New technology palm oil processing machine have been used in palm oil mill in Nigeria

6. Most people have realized the value of palm kernel oil and they began to start palm kernel oil mill plant to produce palm kernel oil and refined palm kernel oil;

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