While several industries are lamenting the tension on their businesses caused by the slumping Naira due to the unavailability of forex in the market, Presco Plc, Nigeria’s largest palm-oil producer, has come out a winner from the situation. The company’s sales have increased by over 60% in 6 months to about 7.5 billion Naira, if results released in July are anything to go by.
This boom in sales arises from the Federal Government’s decision in June 2015 to ban importers of certain items from accessing forex in a bid to improve the value of the Naira. These 41 items included palm oil and textiles
According to the Managing Director of Presco Plc., Felix Nwabuko, this has meant that Nigerians now have no choice than to use locally made palm oil. “The policy is bringing a boost to us in the sense that people who would ordinarily have imported, using government foreign exchange, are not doing that anymore,’’ he said.
Although the company has its own troubles accessing forex required for it to obtain production materials like fertilizer and equipment, Nwabuko said that the company has plans to increase its export of palm kernel to The Netherlands to enable it access forex and play a part in shoring up the Naira.
Parts of this article originally appeared in ThisDay Newspapers