Nigeria plans to increase its palm oil production 700% over the next eight years to help improve its foreign-exchange earnings that are largely dependent on crude oil exports.
The new policy will boost local production to about five million tons from 600,000 tons a year by investing as much as 180 billion naira ($500 million) beginning this year, the trade and investment ministry said in a report.
The new policy also seeks to remove the 75% duty rebate granted on refined palm oil imports and extend a current three-year tax holiday for all producing and processing companies to five years. It will introduce a five-year restriction of crude and refined palm oil importation to largescale refineries and crushing-plant owners.
Farmers will be given access to loans at 9% per year through a central bank-administered lending to expand cultivation by at least three million hectares.
While Nigeria wants to grow quickly in palm oil, it’s still likely to be a small part of a market
dominated by Indonesia and Malaysia. The country currently ranks as the world’s fifth biggest producer in palm oil, accounting for less than 2% of global production.
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