These are financially tough times for Nigeria. I remember during the 2007-2009 global financial crisis, many Nigerian critics, economic experts and analysts dismissed the situation as irrelevant to the Nigerian state of affairs. After all, many Nigerians had perpetually survived under dire social and economic circumstances. Ours was a typically bad economic story, and no one believed things could get any worse. However, recently the Nigerian economy further declined, plunging many Nigerians into an abyss of despair and destitution.
Although I am very critical of the current administration, I do not think it is expedient to blame all of Nigeria’s economic woes on PMB and his cronies. Setting aside all mischief and deceit and critically evaluating the facts, any reasonable person will agree that Nigeria had this coming, long time! For as long as many of us can remember, there has been a unanimous, vehement call for the diversification of the Nigerian economy. Past leaders could not successfully devise creative, alternative sources of foreign exchange earnings and revenue sources and hence, Nigeria continued to rely solely on crude oil until the global oil prices crashed, generating this crisis.
There have been numerous constructive propositions by economic experts, including exploration of natural and indigenous resources, creation of incentives to stimulate local production, amongst others. According to most intelligible sources, the most promising escape is agriculture. Experts have passionately informed Nigerians as well as local and international stake holders about the potential merits of investing generously in agriculture. On this basis, it is pertinent to examine an important economic crop which once buoyantly contributed to government revenue earnings.
Oil palm originated in the tropical rainforest region of West Africa. In Nigeria, it is indigenous to the coastal plain, having migrated inland as a staple crop. Palm oil is one of the most commercially relevant products of the oil palm. West Africa used to be the centre of the palm oil industry[1]. Throughout the first half of the 20th century, Africa, led by Nigeria and Zaire, was the world champion in production and export of palm oil. As of 1911, West Africa alone exported 157,000 tonnes of palm oil, with an estimated 75% coming from Nigeria. In the 1960s, Nigeria’s palm oil production accounted for 43% of the global production, and now only accounts for a miserable 7% of the total global out-turn.
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Progressively, Malaysia and Indonesia surpassed Africa’s total palm oil production and is collectively responsible for 85% of the total global output currently[2]. There are varied reports of how oil palm was far removed from its centre of origin and relocated to sites where its commercial potential was maximally explored. Some claim British administrators took the plant to Malaysia in the 1870s[1], others say some palm fruits were taken to the Americas and from there to the far East where it appears to have thrived better[3]. Some reports say the Malaysians came to Nigeria at some point, and obtained the crop from the Nigerian Institute for OilPalm Research (NIFOR). One way or the other, how the crop got exported is not particularly relevant. The issue now is what makes it imperative for us as Nigerians to look at constructive ways to refurbish this dormant venture.
With the Biomed community waging a vicious war against dietary trans fatty acids, people have been forced to revert to natural (of plant origin), ‘healthy’, low cholesterol cooking oil sources. Palm oil has thus developed to the point where it has become the major edible oil in world markets. Demand for it is projected to double by 2020, driven by increasing consumption in India and China according to the World Bank. It is loaded with beneficial phytonutrients and thus far, nutritional scrutiny has yielded beneficial reviews. Globally, it is a versatile raw material, incorporated into food products and virtually every household and personal care product including: margarine, soaps, shampoo, etcetera. It is also an important source of fuels.
Having established oil palm’s economic relevance, it is time for Nigeria to regain its global competitiveness in this market. With available land for cultivation of oil palm diminishing progressively in Malaysia and Indonesia particularly since wildlife conservationists, environmental activists, have in recent time been advocating and campaigning vigorously against the massive deforestation that has accompanied oil palm boom in that region, many multinational companies are seeking to return to West Africa to invest particularly in Nigeria, Ghana and Côte d’Ivoire. There is believed to be arable land for oil palm plantation in this region and the climate is optimally suitable to achieve long term agribusiness success in this regard. However, we must not carelessly leave this sector to the hands of foreign investors solely. There must be sufficient government involvement not just to the extent of attracting international and or private investment, signing MOUs, and televising jamborees to inform Nigerians of the progress achieved, but to ensure that this sector is refurbished in the best possible manner to yield long term (sustainable) dividends. The Nigerian government must implement industrial scale, highly structured plantations and ensure that the relevant ministries and parastatals furnish the production, storage and commercialization of oil palm adequately. Government may also intervene in resolving land-ownership disputes and encourage local farmers to adopt new (advanced) methods. Our leaders must ensure that all investors work with the local communities. Local benefit schemes which should go beyond job creation, but look at provision of social and medical amenities, schools and so on in the areas around the plantations should be designed and enacted.
Finally, it is necessary to stimulate interest in agriculture among the relevant stakeholders and encourage investment accordingly. Oil palm has long term benefits for the economy including, but not limited to job creation and rural development.
Oluwadara Alegbeleye
