Border closure boost sales and profits for Nigeria’s Agroproducers

The year 2019 was pretty bad for Okomu Oil. During the year it reported revenues were down 7% year on year while profits also fell 40% to N5 billion its worst year since 2016, the year Nigeria fell into its last recession.

One of Nigeria’s largest Agro-processing companies, Okomu Oil has been around for over 4 decades and is in the business of developing oil palm plantation, palm oil milling, palm kernel processing, and the development of rubber plantation.

The year 2019 was pretty bad for Okomu Oil. During the year it reported revenues were down 7% year on year while profits also fell 40% to N5 billion its worst year since 2016, the year Nigeria fell into its last recession.

One of Nigeria’s largest Agro-processing companies, Okomu Oil has been around for over 4 decades and is in the business of developing oil palm plantation, palm oil milling, palm kernel processing, and the development of rubber plantation.

Last year, N15.8 billion of its revenue was from local sales while the balance N2.9 billion (mostly Rubber) was from exports. Most of its local sales revenues came from Crude Oil Palm. Despite its dominance in this sector, it faced an existential threat which if not contained could further erode progress made over the years.

The company blamed Smuggling or Illegal imports as its major reason for the revenue drop experienced in 2019. But things could have gotten worse were it not for what the company describes as the “timeous” intervention of the government in closing all land borders.

Nigeria’s President Muhammadu Buhari-led administration had in October 2019, closed the country’s land borders to imported goods. According to the president, the closure of the borders was due to the smuggling activities of food items, particularly, that of rice.

The company blamed Smuggling or Illegal imports as its major reason for the revenue drop experienced in 2019. But things could have gotten worse were it not for what the company describes as the “timeous” intervention of the government in closing all land borders.

Nigeria’s President Muhammadu Buhari-led administration had in October 2019, closed the country’s land borders to imported goods. According to the president, the closure of the borders was due to the smuggling activities of food items, particularly, that of rice.

The company blamed Smuggling or Illegal imports as its major reason for the revenue drop experienced in 2019. But things could have gotten worse were it not for what the company describes as the “timeous” intervention of the government in closing all land borders.

Nigeria’s President Muhammadu Buhari-led administration had in October 2019, closed the country’s land borders to imported goods. According to the president, the closure of the borders was due to the smuggling activities of food items, particularly, that of rice.