From Tony Osauzo, Benin
Nigerian palm oil producers are under pressure to meet demand for palm oil and its byproducts, following the recent ban by the Indonesian government on exportation of its palm oil. The development is said to have created huge opportunity to build palm oil cultivation and production in Nigeria.
The Managing Director and Chief Executive Officer of Raedal Farms Limited, Uwadiale Agenmonmen, disclosed this when he led a team of investors to the company’s farm in Iguemokhuwa village, Orhionmwon Local Government Area of Edo State.
Speaking to journalists shortly after the tour of the farm, Agenmonmen said finance remained the major challenge of the company, adding that the company needs at least N2 billion to complete its current expansion programme.
“The business environment is interesting. It may have its ups and downs but lately , the palm oil value chain has been the best in a while, fostered by Indonesia shutting down their export recently and that has driven the pressure back home.
“People that normally import can no longer import palm oil and other products from them so the prices are going up and it is good for us farmers that actually cultivate and sell. So right now the business environment is okay.”
He said the Central Bank of Nigeria (CBN) has provided funds to boost the industry but they must pass through commercial banks which set their conditions or evaluation.