Business
We stopped rubber farming last year due to insecurity in Nigeria – MD, Okomu Oil Palm
The Managing Director of Okomu Oil Palm Plc, Graham Hefer has said that the company’s rubber plantation was stopped in 2023 due to insecurity and attacks on the company’s facilities.
He said this alongside other senior management of the company in an interview with the News Agency of Nigeria (NAN) on Saturday.
He called on the Federal Government and Edo State Government to help the company combat bandits whose activities are disrupting its operations.
Hefer stated that rubber production is strategic to the firm’s operations, as it serves as one of its major sources of foreign exchange earnings. He, however, lamented the losses incurred in production, attributing them to insecurity.
He said, “Last year, we also had attacks. The same people were attacking us last year, so we had to stop our rubber farming.
“So, we did not fulfil our obligations in terms of our commitment because we could not tap at that stage,”
Other problems facing the company
The managing director stated that, in addition to insecurity, the devaluation of the naira, lack of foreign exchange and inadequate infrastructure have negatively impacted the company.
Hefer also highlighted that certain government policies and regulations, particularly multiple taxation, pose significant challenges for the firm.
He expressed hope that the government would address these issues to facilitate better business performance and attract more foreign investors.
Furthermore, the managing director indicated that there are no immediate plans for the company’s expansion unless decided otherwise by the board.
He stated, “At the moment, we have a good market for what we are producing, and we are happy within that market. We feel we are comfortable with that.
“But if later on, my board decides to look into different things, we may, but right now, we are happy with where we are.”
Backstory
Nairametrics had reported earlier this month multiple attacks on Okomu Oil Palm’s facility, resulting in the death of about three staff of the company. The company lamented the threat of insecurity to its operations and called on the government both at federal and state levels to come to its aid.
- A militant group claiming responsibility for the attacks demanded about a 25% stake in the company and a directorship position on its board.
- Insecurity in the past few years has spread from the North-East region where the Boko Haram insurgency is rife to all over the country. Research by SBM Intelligence revealed that across Northern Nigeria pay as much as N100,000 to bandits for access to their farms and failure to do so results in loss of harvest for the farming season. Some analysts have attributed insecurity across farming regions and communities as one of the factors for the elevated food inflation in the country.
