Malaysia looks to team up with domestic firms to bridge Nigeria's palm oil shortfall

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By Cynthia Alo

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The Malaysian Palm Oil Council, MPOC, has pledged to support Nigeria with technical expertise, research collaboration and investment opportunities to help close the country’s estimated one million metric-tonnes palm oil supply gap.

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The council also announced the establishment of a representative office in Lagos as part of efforts to deepen engagement with stakeholders across Nigeria’s palm oil value chain.

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Speaking at the Malaysia Market Connect programme held in Lagos in partnership with the National Palm Produce Association of Nigeria (NPPAN) and the Nigerian Institute of Food Science and Technology (NIFST), Chief Executive Officer of MPOC, Ms Belvinder Sron, described Nigeria as a strategic market with significant potential to regain its position as a major global palm oil producer.

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She disclosed that Malaysia exported about 300,000 metric tonnes of palm oil and palm-based products to Nigeria in the last one year, adding that local demand continues to outpace domestic production.

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According to her, Malaysia is prepared to serve not only as a supplier but also as a development partner by providing improved seedlings, research and development support, technical know-how and expertise in sustainable palm oil cultivation.

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Sron noted that Malaysia’s experience in leveraging oil palm cultivation to improve rural livelihoods and reduce poverty could offer useful lessons for Nigeria, particularly in boosting smallholder productivity and strengthening farmer organisations.

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She said: “Nigeria is becoming a very important market and we see a room for expansion. You don’t have enough supply for oils and fats in Nigeria. While you work towards meeting your domestic demand, we can provide the supply because Malaysia provides a very consistent supply of palm oil and palm oil products.”

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Addressing the nutritional and industrial potential of palm oil, Research Scientist at NIFST, Dr Oseni Tijani, said Nigeria’s supply challenges were partly linked to inadequate value addition and limited understanding of modern palm oil processing techniques.

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In a presentation titled “Palm Oil and Health: Bridging Science, Nutrition and Dietary Applications,” she explained that palm oil remains one of the most nutritionally rich vegetable oils and called for increased investment in fractionation and processing technologies to maximise its health and industrial applications.

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She observed that countries such as Malaysia and Indonesia have created greater value from palm oil through the separation of the commodity into specialised fractions for food, pharmaceutical and industrial uses.

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Commenting, President of NPPAN, Dr Alphonsus Inyang, attributed the industry’s challenges largely to insufficient oil palm fruit production rather than a shortage of processing facilities.

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He noted that Nigeria possesses favourable agro-ecological conditions for large-scale oil palm cultivation, given that the crop is indigenous to West Africa, and identified the key requirements for growth as investments in high-yield seedlings, improved agronomic practices, modern processing technology and stronger institutional coordination.

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Also speaking, National Vice President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr David Iweta, called for stronger collaboration between Nigeria and Malaysia to revive the country’s palm oil industry.

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He lamented that Nigeria, once the world’s leading producer of palm oil, now consumes about 2.4 million metric tonnes annually but produces only about 1.5 million metric tonnes, leaving a supply deficit that is largely met through imports.

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