… as Okitipupa Oil Palm raises N3.5 billion recapitalisation fund
Taiwo Adewole, managing director of Okitipupa Oil Palm Plc, has said that the country can reclaim the top position in the comity of oil palm-producing nations if the government creates a conducive environment for agribusinesses to thrive.
Adewole who disclosed during the signing ceremony for the Okitipupa Palm Oil Plc right issue ceremony with the Nigerian Stock Exchange held in February in Lagos, said the country has no reason to import palm oil.
Read also: Group trains 654 oil palm producers on RSPO principles in South-South
“I’m one of the advocates that Nigeria has no reason to input palm oil, for whatever reason,” he noted.
“If you’re a user of the palm oil produce, invest locally with the farmers to create an economy for the local producers, rather than putting pressure on the government to make dollars available to bring in processed palm oil,” he said.
According to him, the country should focus on regaining its number one status in the comity of oil palm-producing nations since the production of the commodity originated in Nigeria.
“We should be sufficient by producing enough for our local consumption and then export,” he said.
Speaking on the need for the country to invest in palm oil exportation, Adewole reiterated the fact that the country is under-producing to meet the local demands, hence, the primary concentration should be to boost local production.
“Our own belief is that the current production level is lower than the local demand, so why do you want to satisfy the foreign market when there is a market gap locally?” he asked.
“Well, I’m not closing the window to that opportunity, but we will first satisfy our local market before exploring the foreign market,” he noted.
Speaking on Okitipupa Oil Palm Plc aim to raise N3.5 billion, he said the company is issuing out about 382 million shares at N9 per share, noting that the discounted price is to give opportunities to existing shareholders to buy.
He described the right issue as a significant step to attaining the goals of the firm. “This is a significant step in bringing about the transformation we have all worked for in the last six years.”
“Okitipupa Plc is one of the largest agri-businesses in Nigeria today, and we believe that a milestone has been reached today in our recapitalisation programme that started a few years ago,” he said.
Adewole further pointed out that the company is striving to ensure that it can give back to the shareholders early and assure the shareholders of a promising future.
He decried the insecurity situation in the country which he said is the number one challenge faced by farmers.
“The major challenge to agri-business is insecurity. The one single challenge before farmers is insecurity. We are happy the federal government and governors have approved state police. Security is everything to everybody,” he noted.
Read also: FG tasks oil palm stakeholders on yields optimisation, industry growth
Oluwatobiloba Kuye, desk officer handling the transaction the right issue at Greenwich Merchant Bank, said the financial firm was happy and proud to be representing Okitipupa Plc in achieving the strategic objectives.
“They have been trying to recapitalise for a while now. We have been in and out of the Securities and Exchange Commission trying to get the necessary regulatory approval to take the company to the market.
“I’m very happy that we are doing the sign-in ceremony now, and we’re hopeful that the shareholders will buy into the vision and ideas that the company has put forward so that it can continue the way we know a company should operate, very profitably,” he said.
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