News in brief:
– Edo State’s investment in oil palm through its development programme has led to a 206.2% increase in Okomu Plc’s export revenue for the first half of 2024.
– Government support and improved infrastructure have boosted local sales by 76.7% and attracted significant investment from major FMCG companies.
Despite the turmoil caused by the previous exchange rate crisis following the federal government’s decision to float the naira, a recent statement highlights that strategic investment choices under Governor Godwin Obaseki’s administration have positioned Edo State to achieve substantial foreign exchange (FX) earnings. Companies such as Okomu Plc are at the forefront of this positive shift.
Okomu Plc, a major player in the oil palm industry, reported a remarkable increase in export revenue for the first half of 2024. The company’s export sales surged by an astonishing 206.2%, reaching ₦7.74 billion, compared to ₦2.53 billion in the same period of 2023. This growth highlights the effectiveness of the Edo State Oil Palm Development Programme (ESOPP), a government initiative aimed at boosting oil palm production.
Edo State Oil Palm Development Programme (ESOPP)
Launched five years ago, ESOPP has attracted significant investment in Edo’s oil palm sector. The program facilitated the injection of $3 million from 10 investors, leading to the development of over 70,000 hectares of land. These efforts have created a conducive environment for business, enabling companies like Okomu Plc to thrive.
Okomu Plc’s CEO, Dr. Graham Hefer, praised the state government’s support and infrastructure improvements. According to him, the government’s proactive approach has significantly enhanced the business environment.
“The structures that the government has brought into the agriculture sector have helped a lot; the manner in which the government is doing business has improved,” he said.
This support has fostered a more collaborative relationship between government institutions and companies, facilitating better access to resources and tools.
In addition to export success, Okomu Plc’s local sales also saw a significant increase, rising by 76.7% in the first six months of the year to N67.27 billion from N38.07 billion. This growth reflects the expanding domestic market for oil palm products.
Investors in Edo State are exploring backward integration—a strategy where companies control their supply chain to improve efficiency and reduce costs.
Major Fast Moving Consumer Goods (FMCG) companies such as Flour Mills of Nigeria (FMN), Dufil Prima Foods Limited, Bravag Limited, Green Hill Agricultural Products Limited, and Fayus Inc. are involved in these efforts. These investments are not only enhancing local production but also boosting the state’s export potential.
