By Ogbebor Tony Ikponmwosa
Oil palm investment in Nigeria has been on the rise in recent years due to its numerous benefits to the Country’s economy. Nigeria is the world’s fifth largest producer of oil palm, and the industry is a significant contributor to the Country’s Gross Domestic Product (GDP). However, Nigeria’s overdependence on crude oil has limited the oil palm industry from attaining its full potentials in the global Market and in the local economic space.
Edo State through the Edo State Oil Palm Programme (ESOPP) is taking the first step in the production and cultivation of sustainable palm oil while using oil palm investment to drive economic growth and development of local communities in the State. One of the benefits of oil palm investment is that it creates employment opportunities for both skilled and unskilled workers. Oil palm production requires a significant amount of manual labour, and investing in the industry can help reduce unemployment rate in the Country.
Malaysia is the second highest producer of oil palm and according to the Malaysian Palm Oil Council, the oil palm industry directly employs over 600,000 people in Malaysia, with an additional 1.3 million people employed indirectly in related industries such as transportation, logistics and processing. This shows that oil palm is responsible for generating 46 percent of the entire employment rate.
Furthermore, oil palm investment can also help to increase Edo State Internally Generated Revenue (IGR) through export earnings, thereby eliminating the States overdependence on Federal allocation and generating enough revenue to execute developmental projects all over the State. The demand for palm oil is high globally and with ESOPP repositioning Edo State as the hub of oil palm production in Nigeria, it will have the potential to meet this demand, thus earning foreign exchange for the State and the Country at large.
Indonesia is the world’s number one producer of palm oil accounting for around 50% of global production. The growth of the oil palm industry in Indonesia has led to increased foreign investment, and increased government revenue through taxes and export duties. Oil palm cultivation has played a significant role in the development of Indonesia’s economy. It has become one of the country’s most important agricultural commodities, generating billions of dollars in revenue and providing employment for millions of people.
Another advantage of investing in oil palm is that it is a sustainable industry. Palm trees are perennial crops that can last for decades, and the oil extracted from the palm fruit can be used in various industries, including food, cosmetics, pharmaceuticals, among others.
In conclusion, oil palm investment in Edo comes with numerous benefits for the State, including job creation, increased export earnings and sustainable development. The good people of Edo State should continue to support the State Government and the ESOPP investors so that they can maximize the potential of sustainable oil palm cultivation for economic growth and development of the State.
