We stopped growing rubber last year due to insecurity in Nigeria – Medical Doctor, Okomu Oil Palm

Okomu Oil Palm Plc managing director Graham Hefer said the company’s rubber plantation was halted in 2023 due to insecurity and attacks on the company’s facilities.

He said this along with other senior management members of the company in an interview with the News Agency of Nigeria (NAN) on Saturday.

He called on the Federal Government and the Edo State Government to assist the company in its fight against bandits whose activities are disrupting its operations.

Hefer said rubber production is of strategic importance to the company’s operations because it is one of the main sources of foreign exchange earnings. He, however, lamented the losses incurred in production, attributing them to lack of security.

He said: “We had attacks last year too. The same people attacked us last year, so we had to stop growing rubber.

“So we have not fulfilled our obligations in terms of our commitment because we could not leverage at that stage.”

Other problems facing the company

The managing director said that apart from insecurity, the company was negatively affected by the devaluation of the naira, lack of foreign currency and inadequate infrastructure.

Hefer also emphasized that certain government policies and regulations, particularly multiple taxation, pose significant challenges for the company.

He expressed hope that the government would address these issues to facilitate better business performance and attract more foreign investors.

Moreover, the Managing Director indicated that there are no immediate plans for the development of the company, unless the Management Board decides otherwise.

He stated: “At the moment we have a good market for what we produce and we are happy in this market. We feel good about it.

“But if my board decides to look at other things later, we may do that, but for now we are happy with where we are.”

History

Nairametrics reported multiple attacks on the Okomu Oil Palm facility earlier this month, which resulted in the deaths of about three employees of the company. The company lamented the threat of insecurity to its business and called on the government at both the federal and state levels to come to its aid.

• The militant group claiming responsibility for the attacks demanded approximately 25% of the company’s shares and a director position on its board.
• Insecurity over the past few years has spread from the northeastern region, where the Boko Haram insurgency is spreading, to the entire country. Research by SBM Intelligence has found that across northern Nigeria they pay bandits as much as £100,000 for access to their farms, with failure to do so resulting in the loss of crops during the farming season. Some analysts attribute insecurity in farming regions and communities as one of the factors in the country’s elevated food price inflation.