By Salifatu Guruza, Polycarp Datugun
The essential role of value addition in the oil palm sector as a solution to Nigeria’s pressing challenges such as unemployment, rural poverty, industrial underdevelopment, and import dependence was the focus of a presentation by a Researcher, Mr. Polycarp Datugun, during the Second Quarter Paper Presentation/Meeting of the Raw Materials Research and Development Council (RMRDC), Plateau State Office.
Mr. Datugun, a researcher with the Council presented a paper titled ‘Overview of the Impact of Value Addition in the Oil Palm Industry in Nigeria’, before an audience of government officials, stakeholders, researchers, and agribusiness entrepreneurs. The event was held under the supervision of Plateau State Coordinator of RMRDC, Mrs. Salifatu R. Guruza.
According to Mr. Datugun, Nigeria is the fifth-largest producer of palm oil, yet we continue to import refined products. “The path to economic growth is through processing, refining, and industrial use of oil palm by-products”, he said.
In the paper, which explored the entire oil palm processing value chain; from fruit bunch reception to oil extraction, clarification, drying, and kernel recovery, Mr. Datugun highlighted that crude palm oil (CPO), palm kernel oil, and refined products such as margarine, soaps, and biofuels are critical areas, and would do better with value addition across the chain.
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He noted that value-added activities in the oil palm sector have the potential to generate employment opportunities in processing, packaging, logistics, and marketing. In terms of rural development, Mr. Datugun explained that farmers benefit more financially from processed products than from selling raw palm fruit, thereby boosting local economies.
He also emphasized that refining palm oil locally could significantly reduce Nigeria’s dependence on imported palm products and help the country conserve foreign exchange. In addition, he pointed out that palm oil is a major input for several industries including cosmetics, food, and chemicals; making the sector essential for broader industrial growth.
While presenting the opportunities, Mr. Datugun also pointed out key challenges facing the industry. These include the use of poor-quality planting materials, inadequate processing technologies, bad road networks, weak extension services, and the circulation of substandard palm oil in the market.
To address these challenges, Mr. Datugun recommended that the federal and state governments invest in modern processing equipment and rural infrastructure, while calling for the enforcement of palm oil quality standards, the promotion of agro-industrial clusters, and support for small and medium-scale processors through funding and training programmes.
The presentation was well received by participants, who called for stronger collaboration among the Ministry of Agriculture, the Standards Organization of Nigeria (SON), research institutions, and private sector players to implement the paper’s recommendations.
The presentation was concluded with a pledge by the RMRDC Plateau State Coordinating Office to transmit the insights and recommendations to the Council’s headquarters and relevant government ministries for further action.
