CBN commits N69 billion to Edo oil palm project

 

The Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, Tuesday called on state governors to help the country stop the $500 million of scarce foreign exchange being expended on the importation of palm oil to meet identified demand gap of 1.25 million metric tonnes.

Emefiele, at the launch of Edo Oil Palm Programme and the Plantation Owners Forum of Nigeria Oil Palm Discourse-Focus in Benin City, urged the governors to ease access to land to boost oil palm cultivation and close the demand gap.

THISDAY reports that the CBN governor put the country’s total domestic palm oil demand and consumption at 2.5 million while local production capacity is only 1.25 million metric tonnes.

He said Edo State with Nigeria’s largest oil palm plantation, is the best place to invest, if the country must revive its oil palm industry.

Emefiele, who commended the commitment of the state Governor, Mr. Godwin Obaseki, to developing the country’s oil palm sector, said the CBN would provide N69 billion funding facility required for the ESOPP.

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He added that the intervention was CBN’s commitment to oil palm sector in the state. He stated that the primary objective of the gathering was to exchange ideas and garner support to revive the oil palm industry and its entire value chain through financing major, micro small and medium entrepreneurs and smallholders in the country.

He said: “I am indeed excited that we have arrived at this juncture as in pursuance of the avowed objective of the administration of President Muhammadu Buhari to enhance economic diversification through agriculture. We will pave the way for greater and more endearing developments in respect of the development of the Nigerian oil-palm sector.

“This event today is germane in view of the realities and challenges of today’s economic environment, considering the need to diversify our monolithic economy from crude oil to productive sectors such as agriculture, which contributes over 20 per cent to GDP and 36 per cent to employment.”

On his part, the Edo State Governor, Godwin Obaseki, said the project was in line with his administration’s agenda to harness the state’s rich human and natural endowments to achieve economic growth and wellbeing of Edo people.

According to him, his government is committed to diversify the state’s economy, achieving economic prosperity, creating jobs and improving the lives of the people.

“The focus on the oil palm sector alone can stimulate and drive the economy of any state as it has done to Malaysia and Indonesia. This programme will enable us to move from complaining and talking about what we have lost to concrete action towards regaining what has been lost,” he said.

He said his administration had provided about 120,000 hectares of land for oil palm development in the state.

“Successful implementation of the programme will create over 600,000 more jobs as well as 25,000 hectares of forest cover. This programme will cost us about $600 million, which is approximately N200 billion. The money is there globally as money is not out of reach with investors on ground,” he stated.