Edo Oil palm Expansion: Boosting National Output And Closing Supply Gap
BY INWALOMHE DONALD
RECENT reports confirmed Edo State as Nigeria’s leading oil palm producer, contributing around 12% to the nation’s total palm oil output, a significant achievement driven by the Edo State Oil Palm Programme (ESOPP) and reforms that was introduced under former Governor Godwin Obaseki, attracting substantial investment to close Nigeria’s supply gap.
The immediate past governor of Edo State, Mr Godwin Obaseki took deliberate, bold, and strategic steps to leverage the hidden potential that laid in the oil palm sector, years before its current boom started to unravel in Nigeria. Rising demand for oil palm in Nigeria is quietly driving a boom in the production of the commodity, with Edo State emerging as major hub.
The production of the industrial crop has taken a center stage and has become a veritable source of economic growth in a largely gloomy Nigerian economy, where several sectors are underperforming.
The Edo State Oil Palm Programme (ESOPP) was a major initiative to revitalize oil palm farming in Edo State, Nigeria, by providing land, derisking investments, fostering sustainable practices, and creating jobs through public-private partnerships, aiming for large-scale plantations, boosting food security, and aligning with global standards for responsible production. The program, launched in 2019 and entered its second phase in 2023, involves significant land allocation (over 120,000 hectares planned) and strong community engagement, making Edo a leading oil palm producer in Nigeria.
Key companies involved in Edo State’s oil palm program (ESOPP) include major players like Okomu Oil, Presco Plc, Saro Oil Palm, Flour Mills Nigeria Plc, and Dufil Prima Foods, alongside others such as Saturn Farms, Fayus Nigeria Limited, Bragav, Nimbel Shaw, Agroallied Resources, Agripalm, Farm Forte, and Steve Integrated Services, all working under government initiatives to boost sustainable palm oil production. Ovia North East local government provided 25,329 hectares; Ovia South West local government had 36, 759 hectares; while Orhionmwon local government and Uhunmwode local government provided 51,000 and 23, 000 hectares of land respectively for the expansion of palm oil production in Edo State. Okomu Oil and Presco are expanding their plantations in Edo State.
In the wake of the ban on oil palm export by Indonesia, world’s leading producer of the produce, the Edo State oil palm programme, which was seen to the development of about 62,000 hectares of oil palm plantation in the state by private investors, is a boost in bridging the global supply gap.
Edo State is aggressively expanding its oil palm sector through the Edo State Oil Palm Programme (ESOPP), aiming to fill Nigeria’s significant supply gap by cultivating vast new plantations (around 100,000 hectares), attracting massive foreign investment (like SIAT NV’s $100m for Presco), improving processing, creating jobs, and diversifying the economy beyond crude oil, leveraging existing major players like Okomu Plc and Presco Plc. The initiative involves land allocation, community engagement, and a focus on modern, sustainable practices to make oil palm a new economic driver.
The Edo State Government under Governor Obaseki signed a Memorandum of Understanding (MoU) with Sunora Foods, an Agro-based company that was expected to attract over $100 million Foreign Direct Investment (FDI) into its oil palm business expansion. The partnership is expected to boost trading in oil and vegetable oil to markets across the world.
The government made available large tracts of deforested land for investors, streamlining the process of land acquisition and community engagement. Edo State government acted as a one-stop-shop, helping investors with land surveying, community negotiations (Free Prior and Informed Consent – FPIC), and setting up nurseries. Obaseki promoted sustainable agriculture, adheres to international standards (like RSPO), and integrates with forestry management.
The expansion was aimed to create jobs, foster local value chains (food, cosmetics), diversify the state’s economy, and make Edo a top producer.
Former Governor Obaseki of Edo State has returned Nigeria to one of the world’s leading producer of palm oil. Edo palm oil programme which engaged more than 8 palm oil companies have invested in palm oil production in Edo. Governor Obaseki has started the project of expanding Edo State palm oil development to boost Nigeria’s palm oil production in the global 73.23 million metric tonnes. Obaseki supported major palm trees plantation owners in Edo State which have large industrial estates to expand Nigeria’s palm oil production.
Former Governor Obaseki has introduced Edo palm oil programme which has the capacity to stop palm oil import in Nigeria. Nigeria imports over $500 million worth of palm oil yearly which Edo palm oil programme will eliminate in the next five years. Edo Palm Oil programme will soon stop the importation of palm oil in Nigeria. Governor Obaseki has changed the narrative on investment in palm oil plantations in Nigeria and he has attracted millions of dollars’ worth of investments into palm oil development. Central Bank of Nigeria is also involved.
Inwalomhe Donald writes via inwalomhe.donald@yahoo.com
