Palm oil holds a significant position in Nigeria, both domestically and globally, being a vital commodity in industries such as food, cosmetics, and biofuels. Nigeria stands as one of the world’s largest palm oil producers, yet it grapples with challenges in the sector.
A key issue is the reliance on imports to meet local demand, despite the country’s substantial production capacity. This dependence not only depletes foreign exchange reserves but also hinders the potential economic benefits of local production, including job creation, industrial development, and economic diversification.
In 2021, Nigeria ranked as the 21st largest global importer of Palm Oil, importing $568M worth. Notably, despite being a major producer, the country imported from Malaysia ($365M), India ($92.7M), China ($45.2M), Indonesia ($38.2M), and Singapore ($16.8M).
In Q3 2022 alone, Nigeria imported crude palm oil valued at nearly 20 billion Nigerian naira (NGN) or around $43.4 million from Malaysia, showcasing the ongoing reliance on foreign sources.
Businesses like Presco Plc can play pivotal roles in overcoming these challenges and optimizing Nigeria’s palm oil production potential.
Presco Plc, as a fully integrated company engaged in palm oil plantations, processing, and refining, exemplifies the advantages of vertical integration and value addition within the palm oil industry.
Presco’s Excellence Local production brings numerous benefits, particularly in generating employment in rural areas where palm oil plantations are concentrated. This approach can uplift impoverished regions and stimulate economic growth.
Presco Plc is a beacon of innovation and excellence in the palm oil sector, featuring a comprehensive business model covering plantation management, processing, and refining. By 2017, the company operated across 16,812 hectares dedicated to palm oil cultivation.
Central to Presco’s operations is its cutting-edge infrastructure, including a palm oil mill capable of processing 60 tons of fresh fruit bunches per hour. Complementing this, the company runs a refinery/fractionation plant with a robust daily capacity of 100 tons, along with a palm kernel crushing plant processing 60 tons daily.
Expanding its product range, Presco Plc offers various palm oil derivatives. Yet, the company envisions broader horizons. Future plans include investments in rubber plantations and expanding the capacities of its palm oil mill and refinery to 90 tons per hour and 500 tons per day, respectively.
Supporting local production diminishes the reliance on global markets, providing a stable and secure palm oil supply for both domestic consumption and export.
Presco, with its forward-thinking strategies and unwavering commitment to quality, positions itself as a trailblazer in driving industry expansion and progression for years to come.
