Cross River govt, Malaysia deepen agricultural ties to boost palm oil sector
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- Agribusiness Africa
- June 6, 2025
- News & Analysis
Cross River State is set to deepen its agricultural cooperation with Malaysia in a renewed push to revive Nigeria’s oil palm industry. During a high-level meeting with the Malaysian High Commissioner to Nigeria, His Excellency Aiyub Bin Omar, Governor Senator Bassey Otu emphasized the state’s readiness to leverage Malaysia’s global expertise in palm oil production—an industry Malaysia built using seedlings that originated from Nigeria.
The dialogue, held at the Governor’s Office in Calabar, centered on expanding investment, trade partnerships, and technical exchange between both governments, especially to ramp up Nigeria’s processing capacity and export readiness. Governor Otu announced that Cross River has allocated an additional 8,000 hectares of land to Wilmar International, a major agribusiness player, to strengthen upstream and downstream palm oil operations.
He also outlined plans for the establishment of a dedicated palm research center and accelerated development of port infrastructure to support exports. “We aim to become a hub for palm oil processing and exports,” Otu said, highlighting the significance of palm oil in the era of green energy.
The Malaysian High Commissioner lauded Cross River’s investment-friendly climate and biodiversity. He cited AgriNexus, a Malaysian agribusiness firm that operates JB Farms in Oban, as an example of successful bilateral collaboration. JB Farms has grown to become Nigeria’s largest indigenous oil palm estate, contributing over ₦200 million in taxes annually and employing more than 1,000 locals.
The meeting concluded with a commitment to establish the Incorporated Society of Planters Africa, a regional training and development institution modeled after Malaysia’s own planter society, to support the scaling of sustainable agricultural practices across Africa.
Source- Tribune Online
Expert Review for Agri-Food Stakeholders
This renewed Cross River–Malaysia collaboration is more than a symbolic gesture—it represents a strategic reset for Nigeria’s struggling oil palm sector. For decades, Nigeria has lost ground in global palm oil dominance, largely due to outdated practices, limited processing infrastructure, and lack of coordinated investment. This initiative, however, touches on four critical levers for industry revival:
- Land Allocation to Agribusiness Giants:
Allocating 8,000 hectares to Wilmar signals a serious commitment to industrial-scale cultivation. If backed by modern processing facilities, this could reduce reliance on palm oil imports and stimulate rural economies. - Processing & Export Infrastructure:
Cross River’s investment in port infrastructure and local processing plants aligns with global value chain integration. Processing locally will increase value retention in Nigeria, create jobs, and enhance export competitiveness. - Public–Private Partnerships for Capacity Development:
The introduction of the Incorporated Society of Planters Africa reflects a much-needed shift toward skill development, a cornerstone of Malaysia’s agricultural success. For Nigerian youth and smallholders, this could offer structured access to agribusiness careers. - Sustainability and Green Transition:
With palm oil’s rising relevance in bioenergy and sustainable products, this partnership—if built on best practices—can help Nigeria re-enter global markets not just as a supplier of raw materials, but as a credible player in climate-smart agriculture.
Strategic Considerations for Stakeholders
- Investors should monitor Wilmar’s land-use strategy and the forthcoming processing plant as potential anchor assets for integrated agribusiness clusters.
- Smallholder farmers can benefit through inclusive outgrower schemes if linked to these commercial estates.
- Policymakers must ensure that such partnerships also empower local value addition, not just land acquisition by foreign firms.
- Academia & Research Institutions should proactively align with the proposed palm research center to provide context-relevant R&D support.
- Development Partners & Donors may find opportunities in co-financing training initiatives under the proposed Society of Planters Africa framework.
In summary, this deal is a model for other subnational governments seeking agribusiness-led growth. If well-governed, it has the potential to reclaim Nigeria’s historic oil palm leadership while catalyzing rural transformation.