TRANSITIONING FROM DOMESTIC TO INDUSTRIAL PALM OIL PRODUCTION: ANALYSIS OF STAKEHOLDERS’ PERCEPTION IN NIGERIA

Abstract

This study investigated stakeholders' perspectives on the viability of transitioning from domestic to industrial palm oil production in Nigeria. The analysis encompassed the views of key players in the palm oil value chain, including oil palm farmers, processors, and fabricators. A multi-stage sampling approach was used to select respondents from six states – Akwa Ibom, Edo, Imo, Ondo, Osun, and Kogi – based on their significance in the oil palm value chain. Farmers exhibited a positive inclination towards producing palm fruit for Special Palm Oil (SPO), emphasizing the economic benefits such as increased employment and contributions to local and national economies. However, challenges like cost implications, operational difficulties, and the perception that SPO is exclusive to large commercial farmers emerged as potential barriers. Processors showed optimism about SPO production, highlighting its potential for employment creation and economic growth. Yet, skepticism lingered, particularly regarding formal literacy requirements and economic viability compared to Technical Palm Oil (TPO). Concerns about cultural compatibility and marketing challenges were also raised. Fabricators expressed favorable perceptions of technologies related to SPO production, emphasizing the employment and economic opportunities linked with fabricating equipment for SPO. However, concerns about machine demand and potential marketing difficulties surfaced. The study underscores the importance of understanding and addressing stakeholders' perceptions for a successful transition. It suggests that heightened awareness, coupled with an emphasis on the economic and cultural benefits of SPO production, can facilitate a smooth shift from domestic to industrial palm oil production in Nigeria.

Keywords

• industrial production
• special palm oil
• perception
• domestic production and supply chain