The Federal Government, led by President Ahmed Bola Tinubu, has been called upon to ensure the full implementation of the 2026 fiscal policy to promote industrialization and investment in indigenous products, thereby boosting the nation's economy. Chief Okey Ikoro, National President of the Vegetable and Edible Oil Producers Association of Nigeria, made this plea during a press conference in Owerri, Imo State, on Monday.
Impact of Policy Non-Implementation
Ikoro emphasized that the failure to enforce the policy not only hinders economic growth and overall development but also adversely affects the vegetable oil sector. He urged the federal government to task the Nigerian Customs Service, the National Agency for Food and Drug Administration and Control (NAFDAC), and the Standard Organization of Nigeria (SON) to fulfill their responsibilities effectively.
He stressed that the inadequate discharge of their duties encourages the influx of imported vegetable oil into the country, negatively impacting indigenous producers and posing health risks to consumers.
Challenges Faced by Local Producers
According to Ikoro, since 2024, there has been an unchecked influx of refined vegetable oil from other countries into Nigeria, placing members of the association in debt and driving them out of business. Consumers tend to prefer imported oil due to its lower cost, which stems from smuggling and avoidance of taxes and duties.
“It is nearly impossible for indigenous vegetable oil producers to compete with imported oil marketers who do not pay high electricity bills, value-added tax, or alternative power costs to run their factories,” Ikoro stated.
Collapse of Progress
He noted that the 2023 fiscal policy classified imported refined vegetable oil as contraband, leading to significant progress, business expansion, and increased employment. However, from 2025 onward, the situation deteriorated. Nigerian markets have been flooded with various vegetable oil products through the Badagry border, resulting in numerous setbacks.
“Many who took loans cannot service them, and businesses have been folding up since then,” he lamented.
Call for Regulatory Action
Ikoro highlighted that over 100 oil brands exist in Nigerian markets, and unlike local products, they are not checked because they are cheaper. These imports bypass band A electricity charges, VAT, and diesel costs, and their production processes are unknown, posing risks to consumers.
“We want Customs, NAFDAC, and SON to wake up to their responsibilities. If they cannot, the federal government should find alternatives because we cannot continue like this. Just last week, our members arrested three trucks carrying 100 tonnes of vegetable oil each. How do these heavy trucks cross the borders in broad daylight? Customs, NAFDAC, and SON are killing our businesses,” he concluded.
