The Plantation Owners Forum of Nigeria (POFON) has resolved to stabilise the price of crude palm oil by expanding plantation acreage, amid the country’s rising cost of living.
POFON Chairman, Mr Emmanuel Ibru, disclosed this during a media chat on Wednesday in Benin, following the forum’s meeting.
Ibru, who is also the Chief Executive Officer of Aden River Estates Limited, said the forum aimed to ensure year-round stability in palm oil prices, irrespective of seasonal fluctuations in production.
According to him, just as the country strives to stabilise its economy, POFON is committed to supporting national food security by maintaining consistent palm oil pricing.
“In Nigeria, prices drop in the peak season but rise during the lean season. We aim to close this gap through coordinated market efforts” he said.
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According to Ibru, POFON members have committed to stabilising prices throughout the year, even during off-peak periods by improving storage and supply management strategies.
“To support this goal, POFON members are expanding plantations and investing in infrastructure to meet growing national palm oil demands effectively,” he added.
He noted that consistent efforts over the past 15 years had significantly increased oil palm production across Nigeria.
“Traditional large producers like Presco and Okomu have expanded, while new entrants like Dufil and Saro Africa are investing heavily in Edo State.
“Saro Africa is developing 20,000 hectares; Wilmar has acquired PZ Wilmar shares and is adding 8,500 hectares, nearing 50,000 hectares nationally.
“JB Farms is expanding in Cross River and developing 10,000 more hectares in Ondo, while Agric Palm also continues to grow its holdings.
“Several new investors have acquired land and plan to begin oil palm development within one to two years, boosting future production capacity,” Ibru disclosed.
Ibru said these efforts were already yielding fruit, with national crude palm oil production rising from 900,000 to 1.5 million tons per year.
He emphasised that a supply gap persisted despite ongoing efforts, adding that collaboration with the government was essential to develop a sustainable growth roadmap and financing model for the sector.
He added that the roadmap must cater to large-scale estates as well as small and medium-scale oil palm producers nationwide.
Ibru pointed out that during lean seasons, palm oil supply dropped significantly, causing a sharp rise in prices compared to peak periods.
He lamented the impact of multiple taxations, which discouraged growth and increased production costs.
He added that double taxation forced producers to raise prices, pass extra costs to consumers, and worsen inflation in palm oil products.
He called for government intervention through tax reliefs and financial support to encourage sustainable investment in the subsector.
Ibru concluded by noting that Nigeria remained Africa’s top palm oil producer and 5th globally, but must increase acreage to 500,000 hectares.