Nigeria can generate $1bn in palm oil sector, says trade minister
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Nigeria’s palm oil sector can grow the country’s economy by $1 billion through sustained implementation of the federal government’s diversification agenda amid the recent growth in the national gross domestic product (GDP), driven by the non-oil sector.
Niyi Adebayo, minister of industry, trade and investment, made the assertion during his address at the second Andersen Africa-Europe Bridge Conference, held virtually.
In a statement issued by Ifedayo Sayo, the minister’s spokesperson, Nigeria has initiated collaborations with investors to implement a backward integration programme across key selected priority products, including palm oil, sugar, cassava starch, cotton textiles and garments.
Adebayo enjoined potential investors to take advantage of the domestic market opportunities of palm oil which he said is about $1 billion.
On the supply gap in the cassava market, he noted that despite being the largest cassava producer in the world, Nigeria is faced with a domestic supply gap with over 95 per cent of cassava starch still being imported. He added that the federal government is working towards tackling the challenge by bringing in large-scale investors to bridge the gap and increase the production of cassava starch.
He declared that Nigeria was committed to the establishment of special agro-processing zones across the country to reduce post-harvest losses, increase value addition to farmers and enhance rural employment.
The minister further disclosed that the government is partnering with the African Development Bank (AfDB) to achieve its goals while the ministry is willing to collaborate with potential partners in different areas of the project.
Adebayo said Nigeria’s agri-business sector is full of opportunities across multiple value chains, especially in the area of processing and the government is aiming towards exploiting the potentials by building at least one agro-processing facility in each of the country’s 109 senatorial districts, leveraging available government funding and exploring innovative financing methods such as public-private-partnership and grants.
“The outlook report from the Organisation of Economic Cooperation and Development and the UN Food and Agriculture Organisation states that the sector will undergo robust growth projected to rise 30 per cent between 2018 and 2028,” he said.