The News Agency of Nigeria is reporting that PZ Wilmar Limited, has staked about $80 million on its crude palm oil refinery in Nigeria.
According to the company, the plan, which is being implemented, “would save the country some foreign exchange by eliminating yearly imports of $300 million spent on Palm oil importation, while bringing back the nation’s glory as a primary exporter of oil palm” .
Africa is said to be the world’s next growth spot for palm oil production, with Nigeria seeing earnings growth of local producers, as foreign exchange ban on oil palm products spur domestic capacity.
Official figures in Nigeria’s oil palm sector show an estimated supply gap of about 1.7 million metric tonnes yearly.
Malaysians (a country that Nigeria helped get into oil palm production in the seventies) palm oil output may rise by 12% this year to 19.4 million tonnes from 17.4 million tonnes in 2016, an industry group forecast media report on Tuesday.
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Nigeria’s crude oil palm companies, Okomu Oil and Presco has seen their bottom lines increase since the currency crisis began in Nigeria. Their business model, thrives on the depreciation of the Naira as more reliance on the local market is a boost for their top lines. Both companies have been one of the best performing stocks this year.