The Nigerian government has announced plans to work closely with Indonesia to boost the oil palm sector through export-focused initiatives. This partnership aims at advancing economic growth and sustainability in the domain of palm oil production.
Aliyu Abdullahi, the Minister of State from the Federal Ministry of Agriculture and Food Security, confirmed this collaboration during a discussion with Pahala Mansury, the Vice-President of Foreign Affairs for Indonesia, in Abuja on a Tuesday. Abdullahi highlighted palm oil’s significant potential for export, suggesting that prioritizing export-oriented strategies over import substitution could be beneficial. He expressed optimism that, with Indonesia’s help, Nigeria could enhance its palm oil industry, thereby furthering economic development and reducing poverty.
Indonesia, recognized for having lifted over 16 million smallholder farmers from poverty through its palm oil industry, stands as a role model in this sector. Mansury shed light on Indonesia’s status as the foremost producer of palm oil globally, with an annual production of roughly 50 million metric tons. Of this, the country consumes between 10 to 12 million metric tons domestically, exporting the rest.
Nigeria and Indonesia have established a robust economic relationship, especially in agriculture, trade, and investment. Mansury emphasized that Indonesia is a principal source of edible palm oil to Nigeria, which in return, is a key exporter of fertilizers and more to Indonesia.
The partnership also looks forward to enhancing cooperation in areas beyond agriculture, like energy security and health, particularly in developing livestock vaccines. A significant objective is to engage Nigerian farmers in the forthcoming Indonesia-Africa forum and to consider Nigeria’s membership in the Council of Palm Oil Producing Countries (CPOPC), which could open avenues for stronger economic ties and private sector investments in agriculture and research.
Reflecting on the domestic scene, Ahmadu Aliyu, associated with the National Palm Produce Association of Nigeria (NPPAN), mentioned the ongoing distribution of palm produce seedlings across several states. This initiative aims to uplift families economically, propelling Nigeria towards becoming one of the top palm oil producers globally, alongside Indonesia and Malaysia.
This partnership between Nigeria and Indonesia marks a promising step towards enhancing their palm oil trade, illustrating a shared vision for economic prosperity and sustainability in the agriculture sector.