Godwin Ogbor, 49, used to boast about how lucrative the palm oil business was, but with two wives and three children to feed, the harsh realities of the 2023 planting season have left him with a rather sour taste.
“This is not the right time to come,” he said, pointing at all the machines that had long been idle. In a sad tune, he explained, “It is very dry now and you can see it is just us [Ogbor and his two wives] that are working [at the oil factory].”
Godwin originally settled in Ekiti state in 2018 with his two wives and three children, at which point he began working at a local palm oil factory in Falaju Camp in Emure local government area. He recalled that the early years were very fruitful for the palm oil industry: “Before everything became dry in early 2023, I used to go to the farm with other farmers to collect plenty banga (palm fruits), and we handed them to the women at the factory.
“We also joined them (the women) to cook the banga until we finished the production, and everyone took their own oil to the markets around the community or left them at the factory for people who would come and buy them directly from us.
However, as Godwin pointed out, the situation has changed significantly. The production of a 25-litre keg has become a “very hard” task. This is a sharp decline from the past when the factory had the required palm fruits to produce 20 kegs of oil daily and was bustling with workers. Godwin was sitting near a 25-litre keg at the point of the interview with a bowl of oil nearly enough to fill up the 25-litre keg beside him.
Godwin recounted what seems to be a distant memory now: “The groups have dispersed, and the workers are gone. 30 of our workers had to leave in search of other business.”
Godwin spoke of a lady, Mariam Samson, who stayed behind to work with the factory. Mariam is only staying until her husband’s return from Jos when she will decide her next steps. Mariam’s husband, Samson, was previously involved with the palm oil factory. Samson sustained an accident while using his motorcycle as a means of livelihood after the failure of the palm oil factory and has since fled to Plateau State. According to Mariam, Samson has said he will only return when he’s fine and the palm tree on the farm starts yielding again.
The Economic Realities of Factory Workers in the Local Oil Palm Industry
As rainfall plays a crucial role in the survival of palm trees, which are the primary source of palm oil, Mariam is optimistic that palm tree yield will improve given the improved rainfall witnessed in 2023.
For many like Mariam, their livelihood, which has not been helped by the current economic realities, depends entirely on the amount of palm oil produced at the factory.
“They pay me with oil,” Mariam explained. “When I work for them, they will give me oil.”
Mariam’s daily reward for a job well done is often a 3L keg of oil and more if the factory exceeds its target.
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“The least price of each 25L keg is between N21,000 and N22,000, and sometimes more, depending on the market,” Godwin interluded. It meant Mariam was earning roughly between N2,500 and N2,700 daily as a worker at the factory.
Another oil factory within Emure, about a 30-minute drive to Falaju Camp admits to tipping farmers to help cut down the palm fruits they need to maintain production.
Abdullah, who doesn’t work permanently at the site but comes around often to check on his siblings at the factory, notes the importance of this trade-off in keeping the palm kernel a profitable venture.
“From the bunch to the nut and the kernel, every single thing that falls off from the palm tree is money,” he said.
“Although we have some palm fruits here,” pointing at the stored fruits, “we pay farmers who go to the farm to cut down the palm fruits for us, and we pay them N100 or N200 per bunch,” he added, acknowledging Mariam’s claim that the lack of adequate rainfall in 2022 affected palm operations last year.
Nigeria’s Palm Oil Industry: Impact of Climate Change on Low Palm Oil Production
Climate change activist, Olumide Idowu, explained how the world’s evolving climate impacted the palm oil industry in an interview: “Variations in temperature and rainfall affect palm tree growth and productivity. For instance, droughts and floods can harm palm plants, reducing yields and oil quality.”
“Since weather can stunt palm tree growth and diminish fruit yield, it can lead to palm oil factory layoffs, job uncertainty and lower compensations. Farmers can also lose income and output when droughts or excessive rainfall destroy crops,” Idowu, the Executive Director of the International Climate Change Development Initiative added.
In 2018, Nigeria was identified by the World Bank as the largest consumer of palm oil in Africa. The data highlighted that Nigeria consumed approximately 3 million MT of fats and oils that year, with palm oil making up 1.34 million MT, about 44.7%.
The Central Bank of Nigeria noted that had Nigeria sustained its market dominance in the palm oil industry, the country could be generating about $20 billion annually from the cultivation and processing of palm oil today.
But while it is much easier to fault government policy as completely halting the growth of the Nigeria palm oil industry, research indicates that factors such as climate, regional shape, and soil conditions have significantly impacted the productivity of our palm oil crops.
“Weather changes have far-reaching effects on farmers,” Olumide continued, “and sustainable farming techniques and ways to prevent climate change’s impact on these livelihoods should be stressed.”
