Josephine Okojie-Okeiyi
Malaysia’s Palm Oil Council (MPOC) is eyeing expansion in Nigeria, a key market for the country’s palm oil exports, as demand for the commodity continues to grow.
Belvinder Sron, chief executive officer of MPOC, disclosed this on Thursday at the Malaysia Market Connect in Lagos, stating that Malaysia sees significant market potential in Nigeria and West Africa.
“We see there’s still room to expand the exports of palm or palm products into this country,” Sron said. “Nigeria is a key market for Malaysian palm oil, with exports totalling 300,000 metric tonnes last year,” she noted.
“It’s very interesting, and there’s huge potential here still in this market,” she added.
Sron highlighted Nigeria’s potential for palm oil production, citing the country’s suitable climate and labour force. “Oil palm is not new to Nigeria, it’s not new to Africa. Oil palm came from West Africa,” explaining that Malaysia only commercialises the commodity.
According to her, Nigeria has the potential to increase its plantations to meet local demand; however, the country still needs to bridge its demand–supply gap.
The CEO noted that Malaysia’s palm oil industry can serve as a model for Nigeria, with MPOC promoting sustainable certification and profitable income models.
Sron emphasizes the importance of improving livelihoods through oil palm cultivation, saying, “Sustainability has to be seen as to how you improve the lives of people.”
She added that MPOC is offering Nigerian farmers technical expertise and access to Malaysia’s certified sustainable palm oil supply chain.
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“We want to partner with people here in Nigeria… we can provide you with the supply, because Malaysia provides a very consistent supply of palm oil and palm oil products,” Sron said.
To further cement Malaysia’s strategic relationship with Nigeria, she noted that the country is opening an office in Nigeria to serve the country and the West African region.
In his paper presentation on Palm Oil in Nigeria, ‘Market Dynamics & Malaysia Strategic Role,’ Shermal Perera, founder and group managing director of Agrinexus International, noted that despite being the fifth largest palm oil producer globally, Nigeria and Africa stay heavily reliant on imports to meet demand.
According to him, the demand-supply gaps across the continent in palm production create opportunity, noting that Africa is palm oil’s next frontier.
“Africa’s output is set to climb steeply to 2040, with Nigeria anchoring that growth. Yet today demand still outran supply – a structural deficit bridged only by imports,” Perera said.
He explained that as western buyers tighten and Asian demand matures, Malaysian palm oil has pivoted decisively towards Africa, and Nigeria sits at the heart of that shift.
“Every tonne Malaysia ships in is a tonne Nigeria could grow at home – exactly the gap a turnkey partnership is built to close,” he said while speaking on both countries’ relations.
He noted that Malaysia has commenced supporting Nigeria’s local palm production with technical expertise, improved seedlings, and training on sustainable practices.
In his opening remarks, Prince David Iweta, national vice president, Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), stated that Nigeria, currently a major importer of crude palm oil (CPO), and can alleviate this burden and redirect its focus to non-oil exports by collaborating with the Malaysian Palm Oil Council (MPOC).
Historically, Nigeria was the world’s leading oil palm producer from 1932 to the 1960s, before being overtaken by Malaysia. Iweta noted that oil palm originated in West Africa, specifically Nigeria, and it’s time for the country to regain its position.
The Nigerian oil palm industry, which once accounted for 43 percent of global oil trade, has declined to three percent. Despite consuming 2.4 million tonnes of palm oil, Nigeria produces only 1.5 million tonnes, making it a net importer.
Iweta attributed this decline to the lack of development, noting that 80 percent of Nigerian plantations are held by smallholders, with only a few large-scale developers cultivating a total of 3,000 hectares in Edo State.
Iweta highlighted Malaysia’s success, earning $24 billion annually from palm oil exports, with 20 million metric tonnes produced, which contributes 3 percent to its GDP and employs three million Malaysians.
He urged Nigeria to seize the opportunity to strengthen partnerships with Malaysia and develop its oil palm industry, leveraging the country’s vast land, suitable climate, and young population growth.
Josephine Okojie-Okeiyi
Josephine Okojie-Okeiyi is a journalist with over five years’ reporting experience. She writes on industry, agriculture, commodities, climate change, and environmental issues.
She is fellow of Thomson Reuters Foundation and Bloomberg Media Initiative for Africa.
Source: Businessday.ng | Read the Full Story…
