Nigeria plans to increase its palm oil production 700% over the next eight years to help improve its foreign-exchange earnings that are largely dependent on crude oil exports.
The new policy will boost local production to about five million tons from 600,000 tons a year by investing as much as 180 billion naira ($500 million) beginning this year, the trade and investment ministry said in a report.
The new policy also seeks to remove the 75% duty rebate granted on refined palm oil imports and extend a current three-year tax holiday for all producing and processing companies to five years. It will introduce a five-year restriction of crude and refined palm oil importation to largescale refineries and crushing-plant owners.
Farmers will be given access to loans at 9% per year through a central bank-administered lending to expand cultivation by at least three million hectares.
While Nigeria wants to grow quickly in palm oil, it’s still likely to be a small part of a market
dominated by Indonesia and Malaysia. The country currently ranks as the world’s fifth biggest producer in palm oil, accounting for less than 2% of global production.
CENTER FOR AFRICAN STUDIES
Center for Africa Studies (AFRAM) which located in Ankara, is an organization facilitating under the administration of African Affairs Council (AFAC). It makes various researches about Africa to enhance economic and cultural bounds between Africa and Turkey. AFRAM’s publishings has been shared with different institutions as they require to obtain.
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