The National Chairman, Vegetable-Edible Oil Producers Association of Nigeria (VEOPAN), Okey Ikoro, has advised the Federal Government to consistently initiate and adopt policies that strengthen Nigeria’s palm oil production capacity.

Ikoro identified inconsistent policies, poor infrastructure, inadequate financing, low-yield planting materials, and weak protection for domestic producers as challenges hampering increased palm oil production in the country.

Ikoro gave the advice in response to recent statements by the Malaysian Palm Oil Council (MPOC), which expressed interest in helping Nigeria develop its palm oil industry while simultaneously expanding Malaysian palm oil exports to Nigeria.

He insisted that the move should be carefully scrutinised to prevent future economic sabotage or the unwitting paving of the way for unhealthy competition in the palm oil business between the two countries.

According to him, “on the surface, the proposal appears attractive. It promises technical cooperation, technology transfer, sustainability certifications, and increased collaboration. However, Nigeria must ask a fundamental question: whose economic interest will ultimately be served?”

The VEOPAN boss further said: “Every nation pursues policies that advance its own economy. Malaysia is no exception. Malaysia has spent decades investing billions of dollars to become one of the world’s largest palm oil exporters. It would be unrealistic to expect it to actively support the emergence of a competitor capable of reducing its market share.

“The MPOC itself has openly stated that Nigeria remains a key export market and that it sees room to further increase Malaysian palm oil exports into Nigeria. That declaration alone should guide our understanding of its strategic objective.

‘If Malaysia genuinely wishes to support Nigeria, such cooperation should not result in greater dependence on imported palm oil. Instead, any partnership should insist on measurable commitments such as: establishment of modern seed production centres in Nigeria; local manufacture of processing equipment; investment in Nigerian plantations and refineries; development of local fabrication capacity and training of Nigerian engineers, researchers and extension officers.”

MEANWHILE, Ogun State has secured an initial investment of about $100 million from Presco Plc, one of Nigeria’s leading integrated oil palm companies, as the firm commences plans to establish operations in the state.

The Group Chief Executive Officer of the company, Adewale Arikawe, disclosed this yesterday after a meeting with Governor Dapo Abiodun at the Governor’s Office, Oke-Mosan, Abeokuta, the state capital.

Arikawe said the company chose Ogun after assessing its business environment, strategic location, infrastructure, and investment policies, describing the state as an attractive destination for large-scale agricultural investment.

He said the company, which operates across the oil palm value chain from plantation development to processing, refining, and the production of finished consumer products, would support the state’s agricultural transformation agenda through the investment.