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Problems with palm oil - 22nd October 2021

The government in Nigeria is helping its palm oil industry as it wants to create jobs. Palm oil is vital to Nigeria. It is found in a wide range of products from foods to cosmetics. People also depend on palm oil for employment.

Nigeria was once a major palm oil producer. But it currently imports the majority of its palm oil. The government is trying to reverse this by offering loans to palm oil producers.

Graham Hefer, managing director of the Okomu Oil Company, explains how the system works.

Graham Hefer: "We’ve been privileged enough to, to get a loan, it has certainly helped us, it has, it has helped us to develop our new extension."

70 percent of Nigeria's palm oil is produced by small scale farmers and producers who cannot get the government's financial aid. They are now asking for financial support from the government in order to increase production. This will help make up the 500,000 tonnes of additional palm oil the country needs yearly.

Micah Ojo, who manages a small farm, describes the issue he faces.

Micah Ojo: "At the end of the day after we filled in forms, whatever we did, at the end of the day the loan never came to us. It does not come down to the real local farmers, that is the problem we are facing."

Throughout the world, people have attacked the palm oil industry for its poor employment practices and the deforestation it can cause. However, for people like Ojo, the industry offers employment which then helps the wider community.

Micah Ojo: "We need the government to come to our aid to assist us so that we can also give back to society by employing more workers then they can feed their families and others."

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