Enugu begins commercial Palm Oil production

The Enugu United Palm Products Limited (UPPL), a public-private partnership between Pragmatic Palms Limited and the Enugu State Government, has commenced commercial production of palm oil for the Nigerian market, with plans to expand into refined products and establish a new industrial complex.

The development was disclosed by the Managing Director of the company, Prof. George Nwangwu, when he led other directors of the firm to the Government House, Enugu, to brief Governor Peter Mbah on the progress of the company since the commencement of its operations, two years ago.

Nwangwu said the company had restored its plantations in Ibite-Olo, Umulokpa and Ugwu-Oba, located in Ezeagu, Uzo-Uwani and Oji River Local Government Areas of the state, respectively, to productive use.

According to him, the company has so far replanted over 1,000 hectares and is gradually replacing old palm trees, some of which are more than 50 years old.

“When we took over, the place was thick forest and nothing, but a dead place. We came in and turned the place from being a forest into a plantation. “We have cleared the whole place, pruned the trees that were there, and started replanting. The trees we met were very old, over 50 years old, and so they needed to be replaced. Gradually, we are replacing them. So far, we’ve planted over 1,000 hectares. The idea is to keep planting until we replant the entire plantation and renew all the trees that are there”, he said.

The UPPL boss said the company is moving beyond primary agricultural production by investing in processing and value addition, noting that it had installed mills and improved the quality and volume of palm oil production.

He disclosed that the company is also investing US$2.2 million in a refinery that would process Crude Palm Oil (CPO) into olein and stearin, while refining palm kernel oil.

“We also understand that this is a business and not just planting. Agriculture has moved beyond planting alone. We need to process because value addition is important. So, we’re milling our oil now. We’ve improved the quality and quantity of the oil that we’re producing. We have installed mills and also invested heavily in refining the products further down the line. We’re investing about US$2.2 million to install a refinery. The refinery will not only refine our Crude Palm Oil (CPO) into olein and stearin, it will also refine our palm kernel oil”, Nwangwu said.

He added that the company is developing a new industrial complex to consolidate its production and processing operations.

Nwangwu further disclosed that the company’s palm oil brand, Enugu Vegetable Oil Production (EVOP), had been launched and was already available in open markets and supermarkets across Nigeria, with sachet packaging expected to hit the market within two weeks.

He explained that the EVOP name was chosen to connect the product with the region’s agricultural and industrial heritage, particularly the former Anambra Vegetable Oil Products (AVOP) vegetable oil brand produced in Nachi, Udi LGA.

“We chose the name EVOP to make sure that we keep in touch with our historical foundation. Some of us who are old enough would remember AVOP vegetable oil being bottled in Nachi, Udi. We feel that this is the product of our people, and we had to connect with our historical beginnings.

“That’s why we called it EVOP, to connect with and remind people of our historical AVOP”, he said.

According to him, the company’s objective is to make the product accessible to households across Nigeria while maintaining strict standards of quality, natural production, and traceability.

“The important takeaway about this palm oil is that it’s natural. Our plantations are in Ibite-Olo, Umulokpa, and Ugwu-Oba. You can see the trees there. If you go there, you can see where we harvest the fruit bunches, how we mill the fruit bunches, and how we package them.

“Everything is done in-house. Nothing is contracted. We are end-to-end, and we also have certification from the National Agency for Food and Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON), and all the relevant agencies.

“If you look at our product, you’ll see a barcode there, and you’ll also see a code that you can scan to tell you where the product is from. For us, traceability matters, and that is the fundamental advantage of our palm oil”, Nwangwu added.

He said the company’s expansion is expected to contribute to employment generation, local economic activity, and the development of the state’s agricultural value chain.

Responding, Governor Peter Mbah described the partnership between the Enugu State Government and Pragmatic Palms Limited, as a model worthy of emulation, saying it demonstrated the administration’s commitment to reactivating dormant government assets for the benefit of Ndi Enugu.

He assured the company that the state government would fulfil all its obligations under the partnership and provide the necessary support to enable UPPL achieve its full potential.

Mbah also expressed support for the company’s plan to list on the Nigerian stock market within four years, saying Enugu needed companies capable of attracting public investment and creating greater value for the state.

“This is consistent with the state’s ambition, to optimise these assets and to grow them and make them big. We are talking about an investment outlay of over N100 billion, and if in four years you are targeting going to the market, we are with you on that. We will give you all support”, he said.

The governor disclosed that the state government is on the verge of awarding two major road projects to improve access to the company’s plantations, including the road from Umumba Ndiagu to Ebenebe, adding that the projects would be fast-tracked.

He also said he had directed that the headquarters of the state’s forest guards be located at Ibite-Olo, to strengthen security around the plantation, while assuring the company that the government would address any encroachment on its acquired land.

Mbah further assured UPPL that the government would provide the 6,700 hectares committed under the partnership and work with the company and the host communities to secure additional land, if it decides to expand its target to 10,000 hectares.

He stressed the importance of maintaining transparent and credible financial records, ahead of the proposed listing and said the government would hold regular briefings with the company to identify and swiftly resolve challenges.