A report by PricewaterhouseCoopers [PwC] shows that the demand for Nigeria’s palm oil is on the increase both locally and internationally.
PriceWaterhouseCoopers, a research firm said this in a report released in Abuja on Wednesday.
During a validation workshop on National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders organised by Solidaridad West Africa, PwC said the demand for palm oil in Nigeria had been growing just like the country’s population.
It mentioned the producing states to benefit from the windfall as Bayelsa, Rivers, Anambra, Imo, Enugu, Abia, Imo, Edo, Delta, Ondo, Cross Rivers and Akwa-Ibom, Osun, Ogun, Oyo, Ekiti, Abia, Ebonyi, Benue, Nasarawa, Kwara, Kogi, Plateau, and Taraba.
PwC, however, lamented the low supply of the product compared to the increase in the need for Nigeria’s palm oil from foreign countries.
The research firm stated: “Demand is still expected to outstrip supply owing to low yield, slow plantation growth and the perennial nature of the oil palm. The gap is likely to be filled by import and smuggling.”
Additionally, it noted:
“Consumption grew at an average growth rate of 2.9 per cent, mirroring Nigeria’s population growth rate.
“This growth trend is projected to continue as palm oil continues to be a major food source for both domestic consumers for local dishes (80 per cent of demand) as well as industrial consumers (20 per cent), who require palm oil for various food and household items.”
It further explained that the total consumption of crude palm oil was estimated at 1.6 million metric tonnes in 2018, with production put at about 900,000MT.
“Consumption is expected to reach up to reach over two million metric tonnes in the next 10 years by 2029, with a potential supply gap of up to one million metric tonnes.”
PwC said its investigations primarily focused on oil palm producing states and stressed that the demand for oil from these locations is on the rise.