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Exporters cut palm oil price as Nigeria’s imports hit N13.47bn

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Exporters have slashed the price of crude palm oil as demand for the commodity is on the increase in Nigeria.
Already, the oil producers are in neck-to-neck competition to grab Nigerian market.
Currently, Nigerian importers source their palm oil from Thailand, Malaysia and Indonesia to meet industrial and domestic demand.
Between last February and April, price of Malaysia palm has dropped by 22.3 per cent from $607.97 to $472.55.
Already, Malaysia has kept its export duty on crude palm oil for May, 2019 at zero per cent, according to the Malaysian Palm Oil Board (MPOB).
It was gathered that between 2017 and 2018 Nigeria’s annual consumption of palm oil had reached 2.7 million tons.
It is feared that the massive importation and smuggling of the produce may affect the Central Bank of Nigeria’s (CBN’s) assurance that Nigeria would emerge as the third largest producer of palm oil in the world, overtaking Thailand and Columbia in the next few year.
CBN Governor, Mr. Godwin Emefiele, had said that the country would have recorded great heights in capital returns and job creation if she had supported improved cultivation of palm oil like the rest of the world.
Emefiele told stakeholders in Abuja recently that plans were underway to develop sustainable financing models for oil palm in the country.
New Telegraph gathered that within the last two months, Nigeria had taken delivery of 78,110 tons of CPO valued at N13.47 billion ($36.9 million) from four ships.
In March, statistics by the Nigerian Ports Authority’s (NPA)’s shipping position revealed that Navig8 Universe berthed at ABTL with20,000 tons of the produce, while Alangova and Rosy discharged 9,500tons and 12,200 tons in the terminal respectively at the terminal in February.
The vessels,!which berthed at the Apapa Bulk Terminal Limited of the Lagos Port Complex include Africa Runner5 laden with 5,195tons; Lustsen, 7,717tons; Kerel, 18,400tons and Chembulk Houston, moored at New Oil Jetty with 5, 028tons
Currently, local oil production has further declined from 1.02 million tons to 1.01 million tons in the last one year in Nigeria, while consumption remained at 2.7million ton, leaving a deficit of 1.69 million tons.
Last year, Nigeria imported 350,000 tons, an increase of 9.38 from the 320,000 imported in 2017 despite the 35 per cent duty paid by manufacturing firms and other importers to bring the product to the country.
In 2018, Nigeria imported 330,000 to meet local demand.
In the first half of the year, the country took delivery of 111, 398 tons of palm oil at Lagos and Tincan ports.
The Lagos Port Complex took delivery of 5,700 MV Tina Theresa, while MV Champion Cornelia offloaded 4,999 tons at Josepdam in Tincan Island Port in June, 2018.
Also in March 2018, Nigeria imported 55, 699 tons. Susan Victory and Desert Spring offloaded 45,000 tons of the produce.
Data from the United States Department of Agriculture (USDA) explained that Nigeria, which was the fourth largest producer of palm oil in the world now accounts for 3per cent of global production.
Also, Nigeria imported 298,000 tons in 2016 and 302,000 tons in 2017 to meet its short fall following the destruction of oil palm plantations in the country.

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