Nigeria consumes an estimated 1 million tons of vegetable oil annually. Demand is set to increase as the festive season approaches. However, demand exceeds supply with the shortfall estimated at 300,000 tons.
The current initiatives to improve agricultural yields is likely to result in higher domestic production of vegetable oil in Nigeria.
In Nigeria, the Central Bank of Nigeria had last year restricted access to foreign exchange for the importation of refined palm oil as it was added among the items not eligible for forex.
In all, the central bank has a total of 43 items on that list as it continues to push for enhanced domestic production.
CBN Governor, Mr. Godwin Emefiele, yesterday said the restriction of access to forex supply on 43 items that could be produced locally, had aided improved productivity of the manufacturing sector, as the CBN Purchasing Managers’ Index has remained in positive territory for 31 months following the 2016 recession.
“We have exponentially grown our agric outputs and indeed, manufacturers have served as credible off takers of the produce from our rural farmers, supporting improved productivity in the agriculture sector as well as the domestication of the supply chain of several manufacturing firms,” he added.