Okomu Nigeria Sees Subdued 2018 for Palm Oil on Market Woes
- Illegal shipments, weaker consumer income affecting sales
- Company says there isn’t enough demand to absorb current glut
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Okomu Oil Palm Plc, Nigeria’s second-largest producer of palm oil, expects its sales will probably slow for the rest of the year due to a supply glut and weak consumer demand.
There’s a surge of illegal shipments from neighboring West African countries in recent months contributing to oversupply of the domestic market, Okomu Chief Executive Officer Graham Hefer said in a Feb. 12 telephone interview. There are fears the situation may get worse if the government gives import waivers “to some people for political reasons” ahead of 2019 general elections, as happened in the past, he said.