In its pursuit for an advanced strategy, Nigeria and Indonesia have signed a Memorandum of Understanding (MoU) to improve Palm Oil production and market growth with the objective of reducing reliance on traditional methods and increasing the earnings of smallholder farmers. The Indonesian Palm Oil Association (GAPKI) and the National Palm Produce Association of Nigeria (NPPAN) recently signed the MoU in Abuja. Speaking on the development, Amb. Alphonsus Inyang, President of NPPAN stated that the deal would empower smallholder farmers with expertise, technology, and financial rewards. Specifically, the deal aims to create mutually beneficial cooperation and promote growth in Nigeria’s palm oil business, he added.
Mr. Eddy Martono, the Chairman of GAPKI, emphasized Indonesia’s dedication to bolstering bilateral cooperation and assisting Nigeria in growing its palm oil sector. Nigeria provided a suitable position for Indonesia’s goal of expanding its palm oil industry into non-traditional countries, according to Martono. The MoU should spur expansion in Nigeria’s palm oil sector, according to Sahabi Muazu, Director of the Indonesian Embassy in Nigeria. GAPKI Deputy Secretary-General Lolita Bangun emphasized Nigeria’s potential as a lucrative Investment location, pointing to Indomie’s achievements there.
Strengthening palm oil industries in both countries.
She claims that the pact intends to boost exports of palm oil to Nigeria, a country with a rising need for the commodity. She emphasized that the alliance was anticipated to strengthen the palm oil industries in both countries owing to Nigeria’s advantageous position and Indonesia’s experience. Nigeria is a prominent producer of palm oil in West Africa, with states such as Cross River, Akwa Ibom, Edo, Ondo, and Kogi in the forefront of the industry. Leveraging its abundant resources, Nigeria could become a member of the Council of Palm Oil Producing Countries (CPOPC) with this strategic bilateral collaboration.
Millions of smallholders and laborers make their living through the palm oil industry, which makes a substantial contribution to the GDP, Trade balance, employment, and Food Security of many producing nations. Decades ago, nearly half of the world’s palm oil production was contributed by Nigeria, making it the top producer in the globe. However, Indonesia and Malaysia, two nations in Southeast Asia, currently control the majority of the palm oil farming industry. With less than two percent of the market, Nigeria comes in fifth place.
NI-SCOPS to utilize climate-smart agriculture for palm oil production.
Less than 800,000 hectares of land are cultivated with palm oil in Nigeria, 16.3 million hectares in Indonesia, and 5.6 million hectares in Malaysia. Due to antiquated procedures and a lack of investment in cutting-edge technology, Nigeria’s oil palm industry has suffered over the years. The Incorporated Society of Planters (ISP) Afric revealed that the country’s reliance on planting techniques that date back fifty years has made it more difficult for the country to compete with nations like Malaysia and Indonesia that have embraced new technologies,
It underlined how Nigeria must adopt cutting-edge planting Technology and methods in order to be competitive in the global market. Last year, in cooperation with Solidaridad, IDH, and other stakeholders, the National Initiative for Sustainable and Climate-Smart Oil Palm Smallholder (NI-SCOPS) revealed plans to develop a strategy to increase palm oil production in Nigeria by utilizing climate-smart agriculture. Sustainable palm oil production guarantees opportunity for smallholder farmers to become wealthy as well as Sustainable Development of climate-smart oil palm agriculture.
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Notwithstanding the industry’s position, the nation has prospects for future growth given to its ample resources, which include over 80 million hectares of arable land that can be used to cultivate palm oil, a tropical climate that is ideal for production, a high domestic demand and Export opportunities. Additionally, the nation can increase production and establish itself as a significant player in the global market by utilizing programs like the Nigerian Palm Oil Industry Development Initiative alongside enterprises like Presco and Okomu Oil Palm that have begun investing in large-scale production.