T
he National Palm Produce Association of Nigeria (NPPAN) has expressed displeasure over the lukewarm attitude of the Central Bank
of Bank of Nigeria (CBN) towards
granting loans to smallholder oil
palm farmers in the country.
NNPAN argued that the continued denial of credit facilities to
smallholder-oil-palm farmers to
expand their plantations in the
country, by the CBN, was the major reason for the importation of
palm oil into the country thereby
depriving the federal government
foreign exchange earnings. It noted
that the country has spent huge
amount of foreign exchange on the
importation of palm oil.
The president of the association, Mr Alphonsus Inyang, made
known the position of his members while speaking at a working
visit of the governing board of the
Nigerian Shippers Council; Nigerian Export Promotion Council;
National Association of Chambers of Commerce, Industry,
Mines and Agriculture
(NACIMA); Federation of Agricultural Commodities Association
of Nigeria (FACAN) and the representative of 11 palm oil producing states, who were in Uyo,
the Akwa Ibom capital, to brainstorm on the possibilities of establishing export architecture for
oil palm products in the country.
Inyang alleged that the CBN
lending policy was not favourable
to smallholder oil plam farmers
but rather of advantage to oil majors that are of foreign-owned
companies such as Messrs
Prescop PLC; Okumo; Dufil; PZ
Wilmars, among others.
He advocated the use of
smallholding oil palm estates as
collateral for funding by the CBN,
noting with dismay that if the situation continues unabated, in the
next five to 10 years, oil palm
farmers and plantation owners in
the country would be exposed to
a serious challenge in the production of palm oil.
Inyang explained that the main
objectives of the gathering in Uyo
was for the participants to brainstorm on the challenges of how
the leadership and membership of
the National Palm Produce Association of Nigeria (NPPAN) could
put a stop to foreign exchange
spending that Nigeria was losing
on the importation of palm oil into
the country for consumption.
The NPPAN president noted
with dismay that Malaysia and
Indonesia that were in Nigeria to
pick palm seedlings for cultivation have suddenly become the
leading producers of palm oil in
the world.
Inyang observed that Indonesia today has 12 million hectares
of land cultivated with improved
oil palm seedlings with Malaysia
having eight million hectares of
land cultivated with oil palm trees.
He said Nigeria, being the fifth
largest producer of palm oil, has
only 380 hectares of land for the
cultivation of oil palm trees out
of which the country is producing only 1.5 percent of the total
global output that is not even
enough for local consumption.
The president drew the attention of the federal government to
the high cost of processing palm
oil for consumption, noting that
Nigeria, being a member of the
palm oil producing countries of
the world, should evolve measures
aimed at reducing the cost of palm
oil production as obtainable in
Europe, Indonesia and Malaysia.
On the way forward for oil
palm producers, Inyang
advocated the formation of Palm
Oil Producers Development
Council to give farmers the synergy for growth, as obtainable in
Indonesia that also has a Board of Directors governing their activities and programmes.
The chairman, Commodity
Committee of the governing board
of the Nigerian Shippers Council,
Mr Lawal Abdullahi, said his delegation was in Uyo to rub minds
with the leadership and members
with a view to boosting the production and exportation of palm
produce towards earning significant foreign exchange for Nigeria.
Abdullahi called for the production of high quality palm oil,
devoid of adulteration as perpetrated by selfish dealers who engage in the unwholesome act to
earn high profits, noting with delight that palm oil produced from
Akwa Ibom was of high demand
for consumption the world over.
Accompanied by Ajiya Hawa
Muhammad, Alhaji Kasim
Ahmed, Oluseyi Adedayo, Chief
Solomon A site, Dr Victor Iyama,
Surveyor Adekombi and Mrs Ada
Okam, the chairman explained
that with high quality palm oil,
the producers would not have any
difficulties in selling their products in the market.
Abdullahi urged the state government to be willing to assist oil
palm farmers and plantation owners in the processing of high quality and standard palm oil to attract high demand across the countries of the world, as well as sign
Certificates of Occupancy (Cof
O) or titled document to enable
oil palm farmers to expand their
businesses.
Abdullahi emphasized the need
for oil palm farmers to engage
their children in the production,
maintenance and processing of the
tree crop as a way of encouraging
continuity.
Participants were drawn from
11 oil palm producing states of
Abia, Akwa Ibom, Anambra,
Cross River, Delta, Ebonyi, Edo,
Enugu, Imo, Ondo and Osun at
the working visit of the Commodity Committee of the Governing
Board of the Nigerian Shoppers
Council (NSC) to the National
Palm Produce Association of Nigeria (NPPAN) to facilitate the
establishment of an export architecture for oil palm products.
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