Okomu Oil Palm Shuts Rubber Production Amidst Growing Security Concerns

Okomu Oil Palm Plc Managing Director, Graham Hefer, revealed in an interview with the News Agency of Nigeria (NAN) that the company halted its rubber plantation operations in 2023 due to insecurity and attacks on its facilities.

He emphasized the need for assistance from both the Federal Government and Edo State Government to address the banditry disrupting their operations.

Hefer underscored the significance of rubber production for the company’s operations, citing it as a major source of foreign exchange earnings.

However, he lamented the production losses incurred due to insecurity, highlighting that attacks compelled them to cease rubber farming, consequently impacting their commitments.

In addition to security challenges, Hefer identified currency devaluation, forex scarcity, and inadequate infrastructure as further obstacles affecting the company. He also flagged government policies such as multiple taxation as significant hurdles.

Expressing hope for governmental intervention to mitigate these challenges and enhance business performance, Hefer mentioned that the company currently has no immediate expansion plans unless directed otherwise by the board.

In a related development, recent attacks on Okomu Oil Palm’s facility resulted in casualties among the company’s staff. A militant group claiming responsibility demanded a 25% stake in the company and a directorship position on its board.

The broader issue of insecurity in Nigeria, extending beyond the North-East region, has impacted various sectors, including agriculture. Reports suggest that farmers across Northern Nigeria pay bandits for access to their farms to avoid harvest losses, contributing to elevated food inflation nationwide.