News in brief:
-Â The National Palm Produce Association of Nigeria (NPPAN) urges the federal government to establish a National Oil Palm Development Council to regulate the industry.
– Besides regulatory duties, it envisages that the council will address industry challenges like oil palm adulteration, attract investment, and advocate for stakeholders.
The National Palm Produce Association of Nigeria (NPPAN) has called on the federal government to establish a National Oil Palm Development Council to address ongoing challenges within the industry and attract new investment.
The call was made during the association’s annual general meeting, according to a news report. NPPAN’s president, Ambassador Alphonsus Iyang, highlighted the need for a regulatory body to oversee the sector during the meeting. He said that it can help streamline processes for farmers, investors, and businesses.
Iyang added that the council will be an enabler for the industry and he envisioned it as a regulatory body that advocates for stakeholders while tackling issues like oil palm adulteration. He stressed that NPPAN, as an association, has limitations preventing it from effectively combating adulteration without government support.
Nigeria ranking fifth in oil palm production in Africa is due to lack of financing
Alphonsus Iyang expressed concern over Nigeria’s decline from the top spot to fifth in Africa’s oil palm production rankings. He attributed the decline to inadequate financing and invesments in the industry while calling for investor incentives to encourage participation. He also acknowledged that the crop’s extended gestation period may also be discouraging for investors who are looking for quick returns.
On this note, he highlighted further benefits of the council like bridging the existing gap and get more investors in by providing incentives, which is necessary to revitalise the sector.
Beyond the lack of a regulatory body and insufficient funding, NPPAN also identified government apathy and limited access to finance for smallholder farmers as major hurdles confronting the industry.
In contrast to Iyang’s statement and highlighting the importance of investments, recall that in July 2023 the Saudi government announced its interest in boosting Indonesia’s palm oil industry with investments which will likely see the South Asian country maintain its grip on the top spot for many years.
The NPPAN annual general meeting concluded with the election of new officials to lead the association in its ongoing efforts to advocate for the development and progress of the Nigerian oil palm industry.
