Amid latest requires the Federal Authorities to ascertain commodities boards to handle rising costs of meals objects, the Managing Director of Okitipupa Oil Palm Plc, Taiwo Adewole, speaks to Oluwakemi Abimbola, on the matter and different financial points.
Nigeria is presently coping with overseas change challenges. What are the potentials of the nation to earn foreign exchange within the house the place you use?
Our personal perception is that this, we’re a Nigerian firm. Primarily based on the place the nation is right now, the present manufacturing stage is decrease than the native demand. So why do you wish to go satisfying the overseas market when there’s a market hole domestically. Properly I’m not closing the window to that chance, however we are going to initially for fulfill our native market, the native alternative, earlier than exploring the overseas markets. Our loyalty is to our nation and we might want to be a part of the financial transformation of our nation, fairly than on the lookout for alternatives overseas. No matter we do, if we take what we produce out, we’re denying our folks and the economic system, the native economic system, the potential that it has. So we will probably be a part of the group that may contribute to growing our native market satisfying our native demand earlier than taking a look at export alternatives.
One of many causes for the strain on the greenback is that we’re importing from farm merchandise. As a pacesetter on this house, how can we get to that stage the place we’re autonomous that we don’t have to begin importing a few of these merchandise?
That’s why my response is that our focus is on the native market. Now, the extra we export our merchandise and there’s a hole inside domestically, you’re going to proceed to place strain on the greenback as a result of your demand will maintain rising. We’re one of many advocates that Nigeria has no motive to import palm oil, for no matter causes. If you’re a producer, if you’re a person of that product, make investments domestically. Spend money on firms, put money into native farmers who’re producing these merchandise, so that you could create an economic system for them, fairly than put strain on the federal government to launch {dollars} to you to be bringing in processed palm oil. Oil palm originated from Nigeria. So, our focus ought to be in reenacting that’s primary place on the earth, that we ought to be adequate to have the ability to produce sufficient for native consumption after which export, that’s my place on this.
In what methods are you adopting know-how and innovation in your operations?
Right now, you’ll realise that we’re in a digital world, we’re going to be deploying new and extremely environment friendly factories for processing and probably refining to have the ability to produce diversified merchandise from all elements of oil palm. We’re additionally going to deploy new software program to run the assorted processes alongside the worth chain in order that the corporate can reap the benefits of know-how in working its operations.
There have been calls for presidency to ascertain commodity boards to handle the rising value of meals. Do you assume that’s the solution to go?
I feel we ought to be taking a look at free enterprise. Let the federal government restrict themselves to creating the rules and an enabling atmosphere for companies to thrive. We’ve had commodity boards prior to now. What worth did they convey to the farmers and operators in that sector? I’m unsure I’m snug with commodity boards, however let the federal government present the suitable rules, proper insurance policies that may entice overseas direct investments, that may entice real businessmen into the into the sector and the enterprise the enterprise sector will thrive. I need to let agriculture stays the most important employer of labour, creating employment, creating alternatives. So, authorities ought to give attention to creating an atmosphere that may entice the form of funding that’s required. That’s a part of what we’re speaking about right now. The concept is for us to have the ability to increase the scope of our operations, create employment alternatives, create values for folks, practitioners, and on the finish of the day, change into a greater for it.
As a participant in a sector with vital stake within the Nigerian economic system, what are these issues that you simply take into account the main challenges and the way can we start to truly overcome them as a result of the sector appears to be not engaging to farmers?
I feel right now in Nigeria, the one single problem all people faces right now safety. Farmers can not safely go to the farm and count on that they’ll come again. We’re very joyful that the President assented to the creation of state police. For us, we are able to see that this authorities is taking some very optimistic steps to to deal with frontally the difficulty of safety. Safety is the whole lot to all people. Insecurity creates an enormous problem, even to us as Nigerians that we can not merely go to work and are available again otherwise you’re unsure that we are able to come again. So it was authorities addresses the difficulty of insecurity, I consider to a big extent the atmosphere will probably be protected for us to do our enterprise and farmers to go to their farms.
How far have you ever gone in your bid to recapitalise the corporate, particularly presently?
It is a important step in bringing in regards to the transformation that now we have all labored for within the final six years. Whereas we’re one of many largest agribusiness in Nigeria right now, we consider {that a} main function or milestone has been reached in our recapitalisation programme, which we began a number of years in the past. We’ve gone via the assorted approval course of.
What’s going to the recent funding be focused at?
We’re deploying these new funding to new know-how to drive the enterprise. We are going to create the suitable atmosphere for the corporate to have better income or better profitability. I consider with what now we have achieved within the final 4 years. Okitipupa Oil Palm Plc is ready for an ideal efficiency, a great share of the market of the oil palm worth chain.
Okitipupa Oil Palm Plc right now, is a very rebranded firm with far better potential by no means explored in previous years, what’s the magic?
After we got here in 2018, the corporate was in whole comatose with no hope for the long run. However right now, we wish to thank God that it has change into a very totally different firm. It holds the promise for the long run, as a result of the end result that’s popping out right now is completely totally different. The varied methods and drastic choices now we have taken within the final three years, has paid off with nice outcomes
In what methods have the rebranding been achieved?
Properly, it has been a steady re- engineering course of. In 2018, once we got here in, we began with cashless coverage, which gave us the chance to have full management of our revenue. Additionally, due to the massive illegality happening in our plantations, with the assist of the Ondo State authorities that supplied the required safety, we had been in a position to have some measures of management of the plantations, which previous to our coming, had been completely taken over by unlawful harvesters, a few of who even arrange unlawful mills near a few of our plantations.
That’s to inform you the extent we had misplaced out the corporate and to show that it was not within the hand of administration. The plantations, collectively is the soul of the corporate. Nevertheless, in 2020, we needed to change technique, which was very novel and on the finish of 2020, our end result has proven to us that we had been proper with the technique we adopted, we had over 200 per cent return on income and for the primary time the corporate has reported a profitability that was sufficient to wipe our 12 years of constant losses. This for us, was monumental.
