Palm Oil In Nigeria

Palm oil is currently the second most important vegetable oil in the world oils and fats market, accounting for 14.35% of world production of seventeen major oils and fats, ranking only behind soyabean oil, which contributes 20.23% of world output. In terms of world exports of oils and fats, palm oil is currently leading with a market share of 32% while soyabean oil has a share of 16.2%. Palm oil and palm kernel oil have become the production growth leaders in the oils and facts complex since the early seventies (Mielke, 1991). In Nigeria the palm oil sub- sector of the agricultural sector presented itself as a potential productive sector that could be used to diversify the economy after years of neglect. Also, Antia-Obong and Bhattarai,

Eshanomi(2009) indicated that up until the 1960s, Nigeria was the world’s largest producer of palm oil accounting for 43% of global palm oil production, but now reported that Nigeria is the third largest producer of palm oil after Indonesia and Malaysia with an estimated production of 1,300,000 tons representing 3.34% of the world production( FAO ,2010). According to Eshanomi (2009) Over-reliance on traditional production methods, excessive tapping of palm trees for palm wine and the civil war between 1967-1970, are factors that contributed to Nigeria’s inability to meet up with the global rise in demand for palm oil. The palm oil is grown in Nigeria from latitudes 40 - 110N; of the Equator from the fresh water swamp forest of the coast to the Northern zone of the Guinea Savannah. Cultivation of palm oil started in 1928 in Nigeria but palm oil production in the country dates back to several centuries (Omoti, 1999). Production and supply of palm oil and palm kernel is mainly from 24 States in Nigeria namely; Abia, Akwa Ibom, Cross River, Rivers, Bayelsa, Imo, Anambra, Ebonyi, Enugu, Delta, Edo, Ondo, Ogun, Osun, Oyo, Ekiti, Benue, Kwara, Kogi,

Several million smallholders are spread over an estimated area ranging from 1.65 million hectares to 2.4 million hectares and to a maximum of 3 million hectares. The estimate for palm oil plantations in Nigeria ranges from 169,000 hectares (72,000 ha of estate plantations and 97,000 ha of smallholder plantations) to 360,000 hectares of plantations. Many of these plantations mentioned above are the result of past attempts by the Nigerian government to establish large scale plantations, most of which resulted in complete failure. Examples of such failed efforts are the Cross River State project in 60's and the European Union-funded " palm oil Belt Rural Development Programme" in the 90's. The World Bank has played an important role in the promotion of palm oil business in Nigeria. Nigeria is “the second largest recipient of World Bank palm oil sector projects, with six projects from 1975 to 2009”, according to a recent World Bank report. While the results achieved included the plantation of 42,658 ha of oil palm, as well as road improvement and increased milling capacity, only one of the World Bank projects is still under implementation, with the rest having gone bankrupt. (PIND,2011).As a result, many private palm oil producers eventually accessed abandoned government plantations following the leasing of such estates