Nigeria collaborates Indonesia to boost palm oil production, exports
NIGERIA – Nigeria and Indonesia have signed a Memorandum of Understanding (MoU) to enhance palm oil production and market expansion and reduce reliance on traditional methods.
The agreement aims to boost smallholder farmers’ income and establish mutually beneficial cooperation between the two nations.
The MoU was signed by the National Palm Produce Association of Nigeria (NPPAN) and the Indonesian Palm Oil Association (GAPKI) in Abuja.
Alphonsus Inyang, President of NPPAN, stated that the agreement would provide smallholder farmers access vital knowledge, technologies, and economic opportunities in the palm oil sector.
Eddy Martono, chairman of GAPKI, emphasised Indonesia’s commitment to supporting Nigeria’s palm oil industry growth and strengthening cooperation between the two nations.
He said Indonesia sought to expand its palm oil market to non-traditional markets, and Nigeria offered a strategic location for this endeavour.
Lolita Bangun, GAPKI Deputy Secretary-General, highlighted Nigeria’s potential as a profitable investment destination, citing Indomie’s success in the country.
She explained that, with Indonesia’s expertise and Nigeria’s strategic location, the partnership was expected to boost the palm oil industry in both nations.
The enthusiasm of African business players to establish cooperation with Indonesian companies was evident at the Indonesia Africa Forum 2024, where Indonesia’s leading commodities, including palm oil, were showcased.
Nigeria, Africa’s largest palm oil market, aims to improve its production and reduce its import dependence.
The country is the 5th largest producer of palm oil in the world, behind Indonesia, Malaysia, Thailand, and Colombia.
However, Nigeria is expected to import 22% of its consumption, which is expected to be more than 1.9 million tonnes in 2024/2025.
The federal government of Nigeria is ready to collaborate with Indonesia in exploring export-driven strategies to enhance economic growth and development of the oil palm industry.
The Hon. Minister of State for Agriculture and Food Security, Sen. Aliyu Sabi Abdullahi, stated that food security is a top priority on President Bola Ahmed Tinubu’s agenda and that the Ministry is ready to work with Indonesia to boost the oil palm value chain.
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