Nigeria Imports $3.2trn Palm Oil In Ten Years

Nigeria has imported palm oil worth over $3.2trillion in the last ten years, investigation has shown.
Palm oil, a hitherto one of Nigeria’s major foreign exchange earners in the early 60’s is massively imported into the country from Malaysia and Indonesia.
Recall that Nigeria was the largest producer of palm oil in the world with a market share of 43 per cent in the 1960s. But currently, it has a world share of 2.9per cent, with Indonesia leading by 33 million metric tonnes, Malaysia, 19.8 million metric tonnes; Thailand, 2 million; Colombia, 1.108 million metric tons and Nigeria, 970,000 metric tonnes.
Palm oil that used to be Nigeria’s biggest export produce before the discovery of crude oil has now been adopted by Asian countries earning over $25.2 billion in exports.
And with domestic production currently standing at 970,000 metric tonnes in Nigeria, the country needs an annual 2.7 million tonnes leaving a deficit of 1.73 million tonnes.
It was further gathered that despite the high exchange rate and price, the shipment was increased by 12 per cent as global price hit $718 per metric ton.
The price of the commodity, which was $663 per metric ton in July, rose to  $718  per ton this November based on  high demand  by indigenous manufacturers.
According to statistics, Nigeria now import between 400,000 to 500,000 Metric Tonnes of palm oil from Asia to bridge domestic production.
And with the country importing 4,768MT at $663 per MT between 2007 to 2017, the country had spent a whooping $3.2trn importing what can be locally produced.
Former instance, in 2007, Nigeria imported 451,000MT of palm oil while 410,000MT was imported in 2008; 425,000MT in 2009; 435,000MT in 2010; 440,000MT in 2011.
Also, in 2012, Nigeria imported a whopping 470,000MT of palm oil while 518,000MT was imported in 2013; 506,000MT in 2014; 263,000MT in 2015; 400,000MT in 2016 and as at November 2017, 450,000MT of palm oil imported into the country.
Records from the Nigerian Ports Authority (NPA) revealed that MASCOT Munchen, is expected to deliver 8112.17 MT of Crude palm oil at Josepdam Terminal on Tuesday.
Also, Apapa Bulk Terminal Limited (ABTL) at Lagos Port Complex took delivery of 4,000 tonnes from MV Lady Dahlia, bulk carrier, in the first week of this month, while MV Hamour Endurance  is awaiting to discharge about 5,000 tonnes  at JosepDam terminal, Tin Can Island Port.
In August 2017, three vessels berthed at the Lagos Port Complex and Tin Can with 32,483 tonnes of the commodity.
At ABTL were MV GSW Forward and MV Marios G ships, laden with 16,300 tonnes and  11,483 tonnes respectively. Another ship, MV Theresa Success, investigation showed, has also offloaded 5, 000 tonnes of the product at JosepDam terminal.
Findings also revealed that between January and April this year, 50,010 tonnes of the commodity was shipped to the country.
According to investigation at the Lagos Port, MV SeaPrice discharged 15,000 tonnes in January; MV Chemtrans Havel, 10,700 tonnes in February; MV Star Ploeg, 16,400 tonnes in March and MV Mid Nature, 8,000 tonnes in April this year.
Following the surge and high demand for palm oil by Nigeria and Ghana this year, a shipping line, CMA CGM in August this year, imposed a new cargo protection service for shipments of the commodity into the country.
The protection service attracted an automatic prepaid surcharge of $10 per container.
It would be recalled that the shipping line noted that the surcharge was a new tailor-made cargo protection service for palm oil shipments exported from Indonesia and Malaysia.
However, the company said all palm oil exporters would be compensated with up to $10,000 in the event of loss or damage of cargo during transportation.
It added that export from Indonesia and Malaysia ports to other Africa countries would attract a prepaid surcharge of $10 per 20 feet container and $10 per 40 feet container.
Global palm oil market demand was 74.01 million tons in 2014 and is expected to reach 128.20 million tons by 2022. However, Nigeria presently produces at a deficit as local production and importation of palm oil into the country, presently stands at 55 per cent.