Prior to the discovery of crude oil in commercial quantity, Nigeria was known for her agrarian economy. Agriculture was the major source of her foreign exchange earnings through the exportation of cash crops such as rubber from Delta State in south-south region; groundnut, hide, and skin produced by the northern region; cocoa and coffee from the western region; and palm oil and kernels from the eastern region of the country. The discovery of crude oil in Nigeria is a mixed blessing. It came with economic growth which also made many sub-nationals become very dormant and lazy with the monthly dependency coming from FAAC.
Many has called for the urgency to Diversify the Nigerian economy beyond crude oil dependence. This means that the Nigerian economy should find alternative sources of earning her revenue to sustain the 36 states of the federation. Therefore, any serious action to diversify the Nigerian economy must start with reviving other alternative sectors like the agricultural sector and the mechanized industrial sector.
On the 10th of May 2024, In continuation of the bid by Governor Peter Mbah Administration to revive and convert Enugu State’s dormant assets to productive assets which is one of his campaign promises to the people of enugu state, the government signed a N100bn deal with Pragmatic Palms Limited, a subsidiary of Diamond Stripes Limited, to resuscitate the moribund Enugu State United Palm Products Limited, UPPL.
The partnership will see Pragmatic Palms transform UPPL, one of the agricultural and agro-industrialisation initiatives of the late premier of the defunct Eastern Region, Dr. M. I. Okpara, which has gone quiescent for many years. Most universities, hospitals, roads, schools were built and scholarships awarded with proceeds from Palm oil during his time.
Oil palm used to be the mainstay of the economy of the then Eastern Region which has now been split into nine states. The giant strides attained by the old Eastern Region government under Dr Nnamdi Azikiwe and Dr Michael Okpara were mostly financed from that resource. It is on record that palm oil played a significant role in drawing the attention of the international community to Eastern Region as one of the fastest growing economies in the world pre-civil war.
When fully operational, the sector's massive profit and abundance in supply, Enugu has multitudes of opportunities to expand palm oil as it might become the nation’s leading foreign exchange product. Moreover, the oil itself is a natural resource rich in benefits. "Not only can it be used as cooking oil, but it can also be used to make margarine, glycerin, hand sanitizer, and biodiesel. Its waste can be reused to create other products.
The United Palm Product will increase job opportunities and foreign exchange markets, in which a lot of hectares of palm oil plantations and industries will hire thousands of non-graduates and graduates. Usually, the employment is carried out in divisions, starting from engineering, logistics, security, agricultural harvesting, chemical and fertilizer production, refinery, biodiesel manufacture, to hazardous waste treatment.
Increased production of palm oil will help the nation in reducing the growing menace of youth unemployment. This will not only lay up more profits and rise in revenue, it will also reduce the current level of unemployment, which is at 33.3 percent according to Nigeria Bureau of statistics. Nearly half of the youths in this country are unemployed. This effort by the government of Peter Mbah will have a postive multiplier effect of job creation that will also reduce insecurity in the state.
Enugu State governor, Peter Mbah is resolutely pursuing an ambitious economic vision, aiming to elevate the state’s GDP from its current $4.4 billion to an impressive $30 billion in the next four to eight years. His strategy involves fostering robust private sector partnerships and collaborations.
Mbah’s administration is showing commitment to moving Enugu’s economy from a public sector-centric model to one driven by private sector investments.This exceptional transformation support his extensive objective of transforming the state’s fiscal trajectory.
The governor’s far-sighted approach is evident with the symbiotic N100b partnership deal signed with Pragmatic Palms Ltd. It has been conspicuously stated by the government that Pragmatic Palms Ltd will provide finance for 60 percent of the transaction value, while the Enugu State Government will provide the plantations valued at 40 per cent equity. All these are profitable and favorable for the intrest and good of ndi Enugu as United Palm Product Ltd has regained life after many years of obscurity and desolateness.
Nnamani, a political analyst and a social commentator writes from Enugu.
