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The Managing Director of Okomu Oil Palm Company Plc, Dr. Graham Hefer, has voiced critical concerns regarding insecurity, illegal imports, and government waivers for importers, stating that these factors are stifling the competitiveness of local agricultural producers and jeopardizing future investments in the oil palm sector. He also cited multiple taxation, infrastructure deficits, and inconsistent policy frameworks as major hurdles.
In a comprehensive interview marking the company's 50th anniversary since its establishment in 1976, Hefer detailed the milestones that shaped Okomu into Nigeria's largest industrial producer of crude palm oil (CPO). From its privatization in the late 1980s and subsequent IPO—which resulted in a base of over 40,000 shareholders—to the expansion of its milling capacity to 60 tons per hour, the company now produces approximately 90,000 tons of CPO annually.
Hefer highlighted that Okomu's growth is driven by committed shareholders and strategic board decisions. The company plays a pivotal role in Nigeria's value chain, selling 100% of its CPO locally to facilitate import substitution, while exporting 100% of its rubber production to generate essential foreign exchange. Recent investments include state-of-the-art oil mills, a high-efficiency rubber factory with a capacity of 2.5 tons per hour, and the deployment of high-yield third-generation seeds to maximize plantation productivity.
Beyond production, Okomu invests heavily in its 29 host communities, spending approximately N1 billion annually on infrastructure, education, and healthcare. Notable projects include schools, markets, boreholes, and a recently commissioned solar mini-grid in collaboration with the Edo State Government. However, these contributions are overshadowed by a dire security situation. Hefer revealed that terrorists murdered three staff members in 2025, bringing the total loss to 14 employees over the last decade. The company spends billions of naira annually on security personnel and operations, a cost burden not shared by foreign competitors.
Furthermore, the MD criticized the ongoing illegal importation of oils and the government waivers granted to importers, which create an uneven playing field. Coupled with bad roads, port inefficiencies, and high inflation, these challenges make the market increasingly difficult. Hefer called on the Federal Government to adhere to the oil palm roadmap developed with the Plantation Owners Forum of Nigeria, emphasizing that consistent long-term policies and backward integration are vital for Nigeria to leverage its diverse bioclimates and secure its agricultural future.
Source: Vanguard News