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 Sunora foods to invest $100m in oil palm production, others

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Benin, Nov. 2, 2023: Mr Charles Eghobamien, the President and Chief Executive Officer, Sunora Foods, says the company will commit about US$100 million as foreign direct investment in oil palm production and other crops in Edo.

Eghobamien made this known during the signing of a Memorandum of Understanding (MoU) with Gov. Godwin Obaseki in Benin on Thursday.

He explained that the investment would be targeted at five aspects of production, adding that the first would be to acquire 15,000 hectares of land to plant oil palm for the next five years.

“The second is a crush facility for Soya beans and other oil seed crops, and the third will be 12 hundred tons per day edible oil refinery.

“The fourth, a bottling line and a 15,000 bottle per hour bottling lines and the fifth will be an animal feeds processing facility,” he said.

Eghobamien explained that the investment would lead to the creation of 10,000 direct and 15,000 indirect jobs in Edo.

He added that Sunora foods would begin with oil palm plantation, with the goal of selling red palm oil and refining same into vegetable oil.

“We are ready to start in January 2024 as soon as we get the land concession, we will begin planting.

‘Currently, Edo state has one major palm oil refinery which is Presco oil Plc, Okomu oil does not refine as you all know.

“So, this will be a step in the right direction to bridge the gap in palm oil refinery, particularly in Edo state.

“Edo has a lot of palm oil plantation, it makes sense to have this opportunity to refine oil here to make it available not just for the local market but also for regional and later for the international market.

“The advantage there is our specialty. We understand how to refine oil to meet international standard.

“Sunora foods is a 30+years old entity trading in red oil and vegetable oil and marketed across the world, including the USA, Canada and China,” he added.

According to him, “that is why we have come to bring this here. Right now, we ae attracting foreign direct Investment of over US$100 million into this venture in Edo state.

Also speaking, Gov. Obaseki, while congratulating Sunora foods, said Edo government had always supported entrepreneurs and other business groups.

Obaseki implored them to be very diligent and also manage their expansion well, adding that he trusted the company to bring on board their wealth of experience.

“As a government, we will continue to create the enabling environment for your investment to thrive, safe and to obtain the level of returns that you expected to sustain the investment,” Obaseki said.

Mrs Itohan Eribo, the Acting Managing Director, Edo State Skills Development Agency (Edojobs), said that the agency was created by the state government to create employment for the people.

“This is one of the ways we are promoting job creation.

“When this partnership comes to reality, it will attract over 10,000 jobs to  Edo people because of the scope.

“So, when we saw this kind of project it was for us to bring it to the notice of the governor because it is something that will benefit the people of Edo state,” Eribo said.

Nigeria seeks to create 4m jobs from oil palm

C/River secures $15m Oil Palm Investment

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Calabar, Sept. 8, 2023: Governor Bassey Otu of Cross River says his administration has secured a private sector investment of $15 million into Ayip Eku Oil Palm Estate in Akamkpa Local Government Area.

Otu made the disclosure in Calabar on Friday at a media pally to mark his 100 days in office.

He said that his administration hoped to leverage on the state’s comparative advantage in agriculture to provide the needed employment opportunities and also to guarantee food security.

He said that in addition to the oil palm investment, the government had also developed a six years N30 billion agricultural credit guarantee fund for rice, maize, fisheries and livestock.

He disclosed that 100 hectares of cassava would be cultivated within the next one year, adding that the state had commenced planting of 3.5 million hybrid oil palm seedlings in 13 locations across the state.

According to him, order to ascertain with precision, the soil texture for specific crops in the different zones of the state, government has commenced the State-wide Digital Soil Fertility Mapping.

“This is to ensure that all we are doing will translate to greater yields of different crops.

“Also, in partnership with the Oil Palm Growers Association of Nigeria (ORGAN), the state government has commenced the planting of 3.5million hybrid oil palm seedlings in 13 identified locations across.

“In agric-related human capital development, the state has sponsored its indigenes to participate in cassava-bio value chain conference in Asaba, the Delta capital for subsequent establishment of cassava-bio fuel factory in the state, as well as workshop on sustainable oil palm economy.

“Similarly, 50 starter-rice growers have been given free rice seedlings, fertilizer and pesticides, while 30 starter-livestock farmers have been assisted  with day old chicks, feeds.’

The governor explained that the objective of the massive investment in agriculture was to leverage on the multiplier effect on employment and the growth of state GDP.

Oil palm plant

10-tonne daily oil palm factory berths in Calabar

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Calabar, May 20, 2023: The National Board for Technology Incubation (NBTI) inaugurated a 10-tonne daily palm oil processing factory  in Calabar on Saturday.

The project was conceptualised and executed by the traditional head of Kasuk II Qua Clan, Dr Ededem Ayito III, in conjunction with the NBTI.

Dr Agatha Efa, NBTI Centre Manager in Cross River said the factory, an initiative of a private company owned by the clan head, could produce 3,000 bottles of one-litre palm oil in 72 hours.

She noted that the factory would provide employment in addition to improving the economy of the area.

“Projects like this are reasons why the NBTI was established in 1999.

“The goal is to boost the economy; provide employment; bridge the gap between the rich and the poor; it is a plus to Nigeria.

“We have never had something like this from a native of Cross River. The capacity of the factory is capable of producing 3,000 bottles of palm oil within three days,’’ she said.

In his remark, Ayito III said he expected more funding to boost the factory’s production capacity beyond the current projection of 10 tonnes per day.

“We have a lot of oil palms in Cross River, but there is no value addition. When the NBTI was created, I took advantage of it to add value to oil palm for export.

“The equipment can produce up to 10 tonnes per day and we get our raw materials from 150 hectares of land we have cultivated.

“We intend to acquire more avenues for raw materials and we are calling on financial institutions to come to our aid,’’ Ayito said.

Nigeria is the fifth largest producer of palm oil globally with an annual production of 970,000 tonnes, while Cross River is the second largest producer in the country, after Edo.

The project inauguration attracted many traditional leaders who commended the project and said it would curb youth’s restiveness in the state.

Nigeria seeks to create 4m jobs from oil palm

Experts seek increased investment in oil palm to halt importation

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Agriculture experts have called for more investment in oil palm production to enhance the growth and development of the sector.

They said on Tuesday in Lagos against the backdrop of report published last week that Nigeria imported N299.6 billion of palm oil from 2017 to 2022.

The publication which relied on quarterly reports by the National Bureau of Statistics (NBS) indicates that ‘Palm Crude Oil’ is often among the top five imported agricultural products into the country.

Prof. Adetunji Iyiola, a fellow at the National Agriculture and Extension Research Liaison Service (NAERLS), described the importation of oil palm by an agrarian country like Nigeria, as an anomaly.

Iyiola said experts need to develop new strategies to boost local oil palm production in the country.

“The strategy to boost the oil palm sector is to go back to the basics.

“What we need is to make a new habit of investing in oil palm production in Nigeria. It is a very lucrative business.

“We should also invest more in the local processing of oil palm.

“Within the space of four to five years, an investment in oil palm would have begun yielding returns; therefore, we need to go back to the basics.

“We have money bags that should invest in the sector, we should see cultivating oil palm as a long-term investment and should include the entire value chain from production, to processing and export.

“We should not import palm oil as a nation, we have a very fertile land for oil palm production from Benin to Osun to Ondo we have good palm that can grow well,” Iyiola told said.

According to him, oil palm can be grown and sustained in all the South-South states of the country.

He called on the government to invest in agriculture extension especially in oil palm cultivation.

“The farmers need to be equipped with information on oil cultivation to boost local production.

“Government should also aid the local processing of oil palm, the entire value chain should be boosted for the funds we waste in palm oil importation to be invested back into the economy,’’ he said.

On his part, Mr Akin Alabi, co-founder Corporate Farmers International, said extra effort must be done in the production, processing and marketing of the produce.

Alabi said that the country needs to tackle the issues around production and processing of the commodity to grow the sector.

“In terms of production, we do not have premium seeds. Our research institutes need to work hard in the development of premium seeds around the entire oil palm value chain.

“The seeds we have currently are not the standard seeds we require to boost the sector’s production locally compared to other countries such as Malaysia and other Asian countries.

“Also, we have another problem in terms of production; we do not have enough oil palm producers.

“We have clusters of oil palm producers in the South-East, South-South and South-West.

“We need oil palm producers in large scale to produce palm oil because our land is fertile enough for the produce,” he said.

He noted that Nigeria was yet to tap into the entire value chain of oil palm production.

“Another issue is the local processing of oil palm. As a country, we have not properly tapped into the entire value chain of oil palm production.

“We still rely on local production methods for our domestic consumption.

“We must go beyond oil palm production for consumption to industrial use.

“When we can get this right then we will be able to expand wealth creation across the oil palm value chain,” Alabi said.

Nigeria seeks to create 4m jobs from oil palm

Foreign firm targets investment in oil palm, cashew processing

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Pet Agro Farms,a Nigerian-based foreign firm, says plans are on to invest about N150 million in Nigeria via production and processing of oil palm, cashew,  and other agricultural production .

The agro-firm said the initiative had become imperative in order to target the foreign market and earn forex into the country during the ongoing forex crisis in the country.

Ms Rehab Danladi, Director, Pet Agro Farm, said on Wednesday in Abuja that the farm was looking to start up with 40 plots of land in Kogi.

“We are already working closely with the Bank of Industry for the local market production while talks are already ongoing with the NEXIM Bank to finance export .

“There is need for us to go to backward integration now, enough is enough for import,while we process , 80 per cent will be going into the export market, while 20 per cent will be for the local market.” she explained.

According to the Director, it’s all about value-chain, as even wastes from these products from palm kernel, soya bean and others can be converted to poultry feeds that will also boost poultry Farming

Ms Dalandi said the investment would help Nigeria to reclaim its position as a leading global palm oil and cashew producer.

“Currently, the total production of raw cashew in Nigeria is about 1.4 million metric tons annually, which is far from the country’s potentials of over 10 million tons.

 “The initiative she said, will contribute to the country’s agricultural industry and provide employment opportunities to the Nigerian youths’ while ensuring sustainable wealth creation through farming and education on good investment,” Ms Dalandi said.

She added that the firm would be buying seedlings from the farmers and would also provide hybrid seeds to help farmers scale up their productivity.

Nigeria is the 7th largest producer of palm kernel and palm oil in high demand globally but can only get FOREX for Nigeria if maximally harnessed and exported.

Nigeria spends $500m on palm oil import yearly

SAAF promises to make Benue oil palm hub

Mr Sam Agwa, the Director of Agriculture Services, Sir Alex Addingi Foundation (SAAF), has promised that the foundation will make Benue an oil palm hub soon.

Agwa made the promise this during the signing of a Memorandum of Understanding between SAAF and National Orientation Agency (NOA) on Wednesday in Makurdi.

The director further disclosed that the foundation would achieve its target by ensuring that individuals, institutions and corporate bodies engaged in massive planting of oil palms.

“This is the reason we have signed MoU with NOA so that it will assist in the area of information dissemination and sensitisation of the public to the need to plant oil palms.

“NOA will also serve as a channel that will ensure that the oil palm seedlings reach the doorsteps of all the 23 Local Government Areas (LGAs) of Benue.

“SAAF will fund all the cost of disseminating information to the public and other logistics support to NOA,” Agwa said.

He further said that NOA would source for suitable locations to enable occasional placement of seedlings for access by interested citizens across the state.

Meanwhile, the state Director of NOA, Mr Joseph Ijir, has described the idea and the philosophy behind the initiative as wonderful and expressed hope that it would benefit the people.

“This is how Malaysia started and today it is better off with it.

“SAAF has come out with this laudable programme and we are going to help propagate it in all the 23 LGAs to ensure its success,” Ijir assured.

Nigeria seeks to create 4m jobs from oil palm

FMDQ Exchange lists oil-palm Presco’s N50bn bond

The FMDQ Securities Exchange Ltd. has approved the listing of oil palm processing company, Presco Plc’s N50 billion bond on its platform.

FMDQ disclosed this in a statement on Friday in Lagos.

FMDQ Exchange is a platform for the registration, listing, quotation, and trading of financial securities.

The statement read,  “Following the due diligence of the Exchange’s Board Listings and Markets Committee, it is pleased to announce the approval for the listing of the Presco Plc N34.50 billion Series 1 Fixed Rate Bond.

“The bond falls under the N50 billion bond issuance programme on the FMDQ platform.

“Presco Plc is a fully integrated agro-industrial establishment that specialises in the cultivation of oil palm plantation, milling and crushing of palm kernels to produce a range of refined vegetable oil.

“It also has an olein and stearing packaging and biogas plants to treat its palm oil mill effluent.

“The proceeds generated from the Presco Plc Series 1 Bond, will be used by the Issuer to refinance existing facilities from banks and to augment working capital requirements.”

According to it, the bond is co-sponsored by Stanbic IBTC Capital Ltd. (Lead Sponsor), CardinalStone Partners Ltd. and Quantum Zenith Capital and Investments Ltd; all registered members of the Exchange.

“As a securities exchange with a commitment to facilitate growth and development in the Nigerian debt capital market and economy at large, FMDQ Exchange continues to show its commitment to promote an efficient, transparent, and well-regulated market.

“In also attracts and retains both domestic and foreign investors, through the provision of a world-class listing and quotation service, amongst others, in line with its mandate,” the statement said.

Nigeria spends $500m on palm oil import yearly

Support oil palm research, Presco MD urges Nigeria

 The Managing Director, Presco Plc, Mr Felix Nwabuko, has urged government agencies to support oil palm research to boost export and economic development.

Nwabuko made the call while addressing oil palm stakeholders at Presco’s plantation site at Ologbo, near Benin on the occasion of the “Seed Evidence Day’.

The managing director in a statement on Tuesday said that research was the way to go to sustain investments and development of oil palm production in the country.

Nwabuko said that smallholder and outgrower farmers were very critical to the development of the sector.

He, however, commended the Central Bank of Nigeria for efforts to sustain growth in the sector.

He said that challenges posed by inadequate land for large scale expansion had made collaboration with smallholder farmers imperative.

Also speaking, Edo State Commissioner for Agriculture and Food Security, Mr Stephen Idehenre, said government was working to boost oil palm production in the state.

Idehenre said the state government was collaborating with Presco and other stakeholders to produce quality seedlings for Nigeria and the international market.

On his part, the President, Nigeria Agric Business Group, Mr Emmanel Ojewere, described oil palm as the future of Nigeria and Africa.

Siat Group Research & Development Manager, Mr Reinout Impens, who spoke on the outcome of research conducted with partners, said the development would boost growth and sustain profitability.

Impens said the Siat Group started a 20-year collaboration with CIRAD, PalmElit and INRAB in 2007, aimed at sustaining progress and development in the oil palm sub sector.

He said that the “Genetic Block Project” implemented at Presco saw the establishment of progeny trials covering some 500 hectares.

“This project, developed in Africa and one of the largest of its kind in the world, engages over 120 full time workers to monitor the growth, production, and oil extraction rate components.

“Results indicate that oil yield of over 5t/ha can sustainably be achieved in Africa (against a global average of around 4t/ha and well above the 1t/ha averaged in Nigeria).

“These efforts, by ensuring perpetual progress in genetic potential and regional adaptation, not only provide the Siat Group with guaranties regarding the quality of planting materials used.

“It also safeguard the sustainable growth of the African oil palm industry in general, primarily by increasing yield and thus reducing the need for land conversion or deforestation,” he said.

Nigeria seeks to create 4m jobs from oil palm

Edo attracts $531.2m from oil palm investment

The Commissioner for Agriculture and Food Security in Edo, Stephen Idehenre, says the state has attracted about $531.2 million from nine firms in the oil palm sector through the state oil palm programme.

Idehenre made this known during the inauguration of the year 2022 farming season and the FOARE Mushroom Production Centre in Benin on Thursday.

He noted that the state oil palm programme was created to bring opportunities to large, medium and small investors in the oil palm sub-sector.

He also said that 62,000 hectares of land had been allocated to investors under the programme.

“The programme is expected to create more than 200,000 jobs across the oil palm value chain and would add more than 1,000,000 metric tonnes to local production of crude oil palm by 2030.

“No fewer than 22,272 jobs were created from crop enterprise in 2021 while, the project activities in 2021 supported about 1,093 rice, cassava and catfish farmers.

“1,050 hectares of land was also developed for the farmers. This number will be scaled-up in the 2022 farming season,” he said.

According to him, the state is making steady progress in the agricultural that will drive home the sector as the major economic pillar for job and wealth creation.

The commissioner said “we are attracting enough values to justify the decision to make the sector one of the pillars of the state Make Edo Great Again (MEGA) agenda,” he said.

oil-palm-plantation

Okitipupa Oil Palm moves to re-capitalise

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The Okitipupa Oil Palm (OOP) is set to begin re-capitalisation following approval by stakeholders at its 31st Annual General Meeting (AGM).
The company’s Chief Executive Officer, Mr Taiwo Adewole, made this known in a statement on Friday in Lagos.
Adewole said that shareholders approved increase of the company’s issued share capital from N50 million to one billion Naira.
He said that the amount was needed to finance the company’s expansion programme designed to take it to the next level as contained in its strategic master plan.
Adewole expressed delight that the process, which started in 2018 but experienced a setback, had picked up.
“A number of players in oil palm industries have expressed interest in investing in the company today because of the turnaround that has occurred in the company and the fact that the company could return to significant profitability after almost three decades of losses.
“This is attributed to the successful radical reforms carried out in the company since the last three years,’’ he said.
Adewole said that the past glory of the company had been restored.
He said that the company was ready to receive more genuine investors willing to bring huge sums through Core Investor Sale.
“Existing shareholders also have the opportunity to increase their stakes in the company through the AGM approved rights issue offer,’’ he said.
Adewole said that the company had complied with all mandatory requirements, from regulating agencies, for re-capitalisation, including filing of annual returns, publishing of its annual report and holding its AGM.
He said that the company had paid dividends to shareholders and paid land owners annual fees including arrears which accrued over the years.
“The company’s unaudited half-year management account also shows significant profitability consistent with the expectations of the directors and management.
“Okitipupa Oil Palm Plc. is today on a solid footing after three years of rigorous and radical reforms involving all the critical sectors and departments of the company.
“This is why today OOP Plc is the darling of all stakeholders, including host communities who have indirectly taken ownership of the plantations through our novel agriculture operations model where parts of the plantations are licensed out for harvesting of the fresh fruits bunches on yearly basis.
“This is a policy that has helped the company to resolve the seemingly intractable problem of massive theft of our fresh fruits bunches for decades, as well as the very costly security implications and challenges this imposed on the company.’’
Adewole said that under the company’s expansion programme, it had concluded plan to cultivate its remaining 6,000 hectares (greenfield) and gradually replant its ageing brown field.
He added that the company had consequently developed a 250,000-capacity nursery to raise the needed seedlings for re-development of its 9,000 hectares active but aged plantation.

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