By Francis Sadhere, Delta

Delta State Governor, Rt. Hon. Sheriff Oborevwori yesterday unveiled a transformative agricultural initiative aimed at revolutionizing the state’s palm oil sector.

The Delta State Commercial Oil Palm Plantations Growers Cooperative Society Limited (DELCOM COOP) project is expected to attract nearly $1 billion in development finance over the next decade, positioning the state as a leader in Nigeria’s agricultural transformation.

The Governor made the announcement during the public presentation and launch of the DELCOM COOP/Delta State Oil Palm Plantations Development Land Bank and Agric Data in Asaba.

He said that the initiative would not only create thousands of jobs but also stimulate the local economy, making Delta a frontrunner in the global oil palm industry.

Oborevwori outlined the significance of the project in the context of his MORE Agenda, which aims to harness the immense potential of agriculture, particularly the oil palm sector, to foster sustainable development and wealth creation.

“This is a pivotal moment in the history of Delta State, where we seize an opportunity to make agriculture the cornerstone of our economic transformation,” he said.

The initiative builds on a partnership established in November 2018 with the Central Bank of Nigeria (CBN) as part of the CBN’s 10-year Oil Palm Development Initiative, which aims to restore Nigeria’s position as a global leader in oil palm production.

Delta State, as part of this initiative, has committed to contributing 100,000 hectares of farmland, with plans to access N120 billion through the CBN/Bankers Committee’s N500 billion funding facility.

Since the establishment of DELCOM COOP in August 2020, the project has seen rapid growth. From an initial 41 Limited Liability Companies and 1,971 smallholder farmers, DELCOM COOP has expanded to include 145 companies and 3,080 smallholder farmers.

The project’s success is attributed to its community-driven approach, with 68 host communities releasing 130,000 hectares of dormant land for cultivation, surpassing the initial target of 100,000 hectares.

Oborevwori said that 10% of the land would be reserved for indigenous communities, and 22% of the annual net profit from commercial operations would be reinvested into the communities. This model ensures that local residents are active participants, not just beneficiaries, of the project’s success.

As part of the DELCOM COOP initiative, six strategic hubs will be established for aggregating and processing Fresh Fruit Bunches (FFB) into high-value products such as palm oil, palm stearin, and organic fertilizer.

The first phase of the project aims to develop 30,000 to 35,000 hectares, with the establishment of two oil mills at an estimated cost of $150 million.

The Delta State Government has already approved a N25 billion ISPO guarantee for the first phase, demonstrating its commitment to the project’s long-term sustainability.

In addition, the project will incorporate the cultivation of intercrops such as cassava, maize, soybeans, and sorghum, which will be sold to appointed off-takers within the first 12 months of operation.

Oborevwori stressed the importance of stakeholder collaboration in ensuring the success of the project.

“This is not just a government project; it is a collective effort that requires the support of all stakeholders. Together, we will unlock the full potential of this sector and build a prosperous future for generations to come,” he said.

Secretary of DELCOM, Dr. Felix Okonti added that the DELCOM COOP initiative aims to lift two million Deltans out of poverty and create 15,000 millionaires and 1,080 billionaires by 2032.

He also revealed plans to secure $900 million in foreign private equity funding for the development of 100,000 hectares of plantations and six large-scale oil mills.

The DELCOM project is expected to generate over 288,700 jobs initially, with the potential to create one million jobs in the long term, further boosting Delta State’s economy and fostering development in rural areas.

With this groundbreaking initiative, Delta State is set to become a major player in the global oil palm industry, ushering in a new era of economic growth and sustainable development.