Nigeria spends N80.8bn on palm oil in 8 months


A total of 328,598 metric tonnes of Crude Palm Oil (CPO) valued at N80.8million ($221.5million) have been imported by Nigerian palm oil merchants.


The imports were delivered through Nigerian ports between January and August this year.


No fewer than   82,210 tonnes of the produce were imported between June and August 2019, despite Federal Government’s directive to blacklist any firm importing the produce into the country.


Already, the produce is among the list of 41 items restricted from accessing the Central Bank of Nigeria (CBN) foreign exchange.


Nigerian importers currently source their palm oil from Thailand, Malaysia and Indonesia to meet industrial and domestic demand.


The imported palm oil in the last eight months was 93.9per cent of the projected imports of 350,000 for 2019.


Already, the price of the produce from Malaysia has been increased by 29.98 per cent from $472 per tonne in May this year to $674 per tonne.


Statistics from Nigerian Ports Authority (NPA)’s shipping position indicated that the 248,388 metric tonnes of crude palm oil were ferried to the country between January and May, 2019.

Currently,   palm oil imports attract 10 per cent duty and 25 per cent levy in the country.

Newsfieldglobal gathered that within the last two months, the country had taken delivery of 72,110 tonnes of CPO valued at N13.47billion ($36.9million) from four ships.

Statistics by the Nigerian Ports Authority (NPA)’s shipping position revealed that Navig8 Universe berthed at Apapa Bulk terminal Limited (ABTL)  with 20,000 tonnes of the produce, while   Alangova and Rosy discharged 9,500tonness and 10,200 tonnes in the terminal respectively at the terminal in February.

Other  vessels which berthed at theABTL of the Lagos Port Complex include Africa Runner5 laden with 5,195 tonnes; Lustsen, 5,717tonnes;  Kerel, 16,400tonnes and Chembulk Houston, moored at New Oil Jetty with 5, 028tonnes

In May this year Malaysia and Thailand exporters slashed the price of crude palm oil as demand for the commodity increased in the country.

Between February and April this year, price of Malaysia palm has dropped by 22.3 per cent from $607.97 to $472.55.

As at May the Malaysian Palm Oil Board (MPOB) explained that it had kept its export duty on crude palm oil at zero per cent because of competition among the Asian exporting countries.


Between 2017 and 2018 Nigeria annual consumption of palm oil has reached 2.7 million tons.


Meanwhile, the Central Bank of Nigeria (CBN) had assured that Nigeria would emerge as the third largest producer of palm oil in the world.


The   CBN Governor, Mr. Godwin Emefiele said recently that the country would have recorded great heights in capital returns and job creation if the country had supported improved cultivation of palm oil like the rest of the world.


Emefiele told stakeholders in Abuja that plans were underway to develop sustainable financing models for oil palm in the country.

Related posts

Leave a Comment