Palm oil is an essential money-spinning product used not only for edible oil but also in almost all cosmetics globally. Nigeria has the potential to meet local demand, but poor investments have hampered production, creating a huge demand deficit.
As part of efforts to aggressively close the palm oil deficit by members of the Plantation Owners Forum of Nigeria (POFON), JB Farms has expanded its operations to Ondo State with a 10,000-hectare commercial oil palm plantation.
From about eight hectares in Iperu, Ogun State, the firm has scaled up to a commercial farm with 4,000 hectares in Odogbolu Local Government Area of Ogun State and 4200 hectares of oil palm plantation Oban, Cross Rivers State.
Following the efforts, and in line with the Red Gold initiative of the state, Ondo State Governor, Rotimi Akeredolu, has also approved 10,000 hectares of land for oil palm cultivation and value chain in Ore, which JB Farms Managing Director, Ajibola Bankole Adebutu, said would employ about 10,000 direct workers.
Meanwhile, Mr Akeredolu inaugurated the plantation by planting the first oil palm tree on the farm in Ore, recently.
The governor expressed satisfaction over the establishment of the integrated plantation in the state and commended the investor for being meticulous, hard-working and for the courage to explore the agro-allied sector business opportunities despite the hurdles.
The governor said about 70,000 hectares of land had been given to about six agro-industrial investors in the state as part of the efforts to make the state an agro-economic hub that would have multiplier effects on internally-generated revenue, household poverty alleviation through employment opportunities, foreign exchange earnings for the country and food security.
Akeredolu said: “We also recognise that the tree crops value chain is one of the foremost areas where we have comparative advantages. We are committed to improving and multiplying the production of three crops such as cocoa, oil palm, cashew, rubber and coffee. These strategies are also to improve the means of livelihood of the people of Ondo State.
“This is a farm that we are projecting to stand on a total land area of 10,000 hectares and more and this is just the first one. I believe that it will be more than this. I am saying this because we are on a path to uncover the effects of having this farm.”
He expressed satisfaction over the opportunity to plant the first seedling on the farm, saying, “I am really honoured to be a participant and I envision that this establishment will facilitate job creation.”
Founder and Managing Director, JB Farms Limited, Mr Ajibola Bankole Adebutu, said the farm had been operating in Ogun State and looked for opportunities to expand operations to other states.
He added that one or two other states were not interested probably because the firm was considered a small-scale player.
“But one fateful day last year,” Adebutu explained, “I had the opportunity to meet Ondo State Governor, Mr Rotimi Akeredolu.
“And, I prepared all my speech and I sat in front of him and I gave the best of speech I have ever given in my life, and when I finished all my story, he said: ‘there is something wrong with your presentation,” my heart sank and he said, “you are the one who wants to come and invest in my state, I should be the one begging you and not you begging me.’”
He commended the government for not underestimating his capacity as an indigenous player and for giving his firm the opportunity without financial inducement or demand for gratification from any official of the government, saying, “and I hope by the little we have done, we have been able to make you proud.”
Adebutu said: “Now, we have been here for about just over eight months and we have been able to clear just over 1,500 hectares of land, which we will start to plant by the beginning of June once the rains are steady.
“We have the nursery with seedlings now and we intend to finish planting them by the end of August and then we will start another nursery with 400,000 seedlings. The plan is to develop 2000 hectares every year until all the land is used up and built a 60-tonne per hour palm processing plant and also have steam-generating turbans to produce electricity for the whole estate, using the waste that we produce. So, we intend to be quite eco-friendly.”
The Senior Special Assistant to Ondo State Governor on Agribusiness, Mr Akin Olotu, said: “We all realise the importance of what is happening today, but I am bold to say that Mr Rotimi Akeredolu, SAN, has brought back the lost glory of Ondo State.
“Several years back, the Okitipupa Oil Palm was the largest in West Africa, but along the line, it went down the drains. We thank God it is coming up, it is not just coming up today, but the ‘Red Gold policy’ of Mr Akeredolu is repositioning Ondo state, not just for now but for the coming years.”
He disclosed that with the integration of oil mills into the farm, the JB Oil Palm plantation would, directly and indirectly, employ over 40,000 people minimum.
Olotu also disclosed that other six similar projects were ongoing in the state, saying, “I make this prophecy that the year is coming when the governor of Ondo State and even the Commissioner for Finance will not go for Federal Executive Council (FEC) meetings; they will just ask a director in the ministry to represent the state because we would have grown the IGR tremendously.”
He said of the three main sources of edible oil in the global market, oil palm is the most consumed and where the state and the country have comparative advantages.
In the same vein, the CBN governor, represented by Head, Perennial Crops (cocoa, oil palm tree, and cashew), Mr Abdul Razak, said JB Farms is the only indigenous oil palm company in Nigeria that partners with the apex bank successfully.
He said: “I can boldly say in CBN as of today, our greatest partner is JB Farms. We have partnered with them in other areas, especially in Ogun and Cross River States, which they cultivated 4,500 hectares while assessing CBN intervention funds.
“Of course, the loans have been fully repaid, and I can tell you that they are doing passionately and wonderfully well.
“The last speaker captured aptly what will happen if JB Farms actually goes on with what they are doing and I can tell you that Ondo State is blessed.”
To the host communities and royal fathers, he said: “Please, I urge you to give JB Farms necessary support.”
He encouraged others to emulate JB Farms, saying, “if others can do such, certainly it will be very good not just for us but also for the nation at large. We at CBN are ready to partner with any company or any plantation farm that is ready to do similar to what JB Farms is doing.”
The farm is projected to play big corporate social responsibility through neighbourhood hospitals, schools for staff and the host communities, and in production improved cocoa seedlings to farmers free of charge.
Adebutu also disclosed that his integrated farm will also pay yearly royalty to the state government, apart from other benefits.
Note: Attached picture has the Ondo State Governor, Mr Rotimi Akeredolu, planting the first oil palm tree, with Managing Director, JB Farms Limited, Mr Ajibola Adebutu (second right) during the inauguration of the plantation in Ore, Ondo State, recently.
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