PALM oil was among a mainstay of the Nigerian economy before independence in October 1960 and shortly thereafter. Other arable crops like cocoa, cotton, groundnut and rubber were also main revenue sources for the then promising country. During that period, each of the three regions making up the federation maximised its individual comparative advantage, grew its local economy and bolstered national development. It was no wonder then that their individual efforts accounted for the rapid progress the country witnessed in the First Republic. Indeed, these achievements remain unassailable decades after independence.
Sadly, the convoluted political arrangement foisted on the country by a visionless military hegemony as a replacement for federalism halted the development march. The collapse of the palm oil industry, a veritable source of revenue, raw material for the food and cosmetics industry and a critical part of the overall national food production, was only a logical consequence of the truncation of the federal system of government. This is why the recent initiative by the Central Bank of Nigeria (CBN) targeted at resuscitating the oil palm industry is heart-warming. Under the initiative, the CBN Governor, Mr. Godwin Emefiele, has proclaimed a single digit lending rate to speed up the process of reviving the industry as a foreign exchange earner, with the scheme incorporated in the bank’s Anchor Borrowers Programme (ABP). While unveiling the initiative during a meeting with South-South and South-East governors and other major stakeholders in the agric industry in Abuja recently, Emefiele noted that palm oil had become part of the CBN’s ABP and Commercial Agriculture Credit Scheme (CASC) for farmers. The bank, he said, would make available to farmers, high-yielding seedlings that take just three and half years to mature, as against the traditional seedling that requires at least 10 years before attaining maturity. The CBN governor added that the lending rate would not exceed nine per cent per annum.
The story of Nigeria’s slide in the palm oil industry is indeed quite galling. From being the world’s leading producer and exporter of palm oil, Nigeria has become an importer of the commodity for both domestic consumption and industrial use. Malaysia, a country to which Nigeria donated oil palm seedlings, has overtaken it in palm oil production. As the largest palm oil producing nation then, Nigeria accounted for 63 per cent of global production and supply, with the Western and Eastern regions making that feat possible. Today, the country accounts for a miserable 1.37 per cent of global palm oil production and is an importer of the commodity. It produces just 2.7 per cent out of the 2 million tonnes consumed annually, whereas two Asian countries, Malaysia and Indonesia, account for 83 per cent of global production of the commodity.
It is a national shame that the country now loses N180 billion annually due to lack of vision by its leadership. The country must take realistic steps and measures to revive the sector. What the current situation illustrates is the lack of capacity and willpower by successive administrations in the country to solve crucial national issues. In this regard, it is hoped that with a demonstrable political and economic will, coupled with necessary modern technology, the move to revive palm oil production in the country will succeed. To say the least, the scheme proposed by the CBN has the potential to right some of the wrongs of the past. On its part, the private sector must be encouraged to key into the initiative as government and its agencies have over the years proved to be a complete disaster in managing public ventures, enterprises and businesses. This approach will be in tune with current global practices.
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