Delta State Governor, Rt. Hon. Sheriff Oborevwori, yesterday, said the Delta State Commercial Oil Palm Plantations Growers Cooperative Society Limited (DELCOM COOP) project was expected to attract close to $1 billion in development finance over the next decade.
Governor Oborevwori who disclosed this at the public presentation and launch of DELCOM COOP/Delta State Oil Palm Plantations Development Land Bank and Agric Data in Asaba, said it was expected to create thousands of jobs, stimulate the local economy and position Delta State as a frontrunner in Nigeria’s agricultural transformation.
He said that transforming Delta State’s Oil Palm Industry was in furtherance of his MORE Agenda, which underscores the unwavering commitment to unlocking the immense potentials of agriculture, particularly the oil palm sector, as a catalyst for sustainable development, wealth creation and the enhancement of livelihoods.
According to him, “today, we come together at a pivotal moment in the history of Delta State – an opportunity to shape a future where agriculture, particularly the oil palm industry, becomes the cornerstone of our economic transformation.
“This journey began on 20 November, 2018, when the Delta State Government, under the visionary leadership of my predecessor, initiated a bold partnership with the Central Bank of Nigeria (CBN).
“That meeting marked the genesis of our commitment to the CBN’s 10-year Oil Palm Development Initiative, a programme designed to reclaim Nigeria’s global leadership in oil palm production and drive unprecedented growth in this vital sector.
“Delta State, like other participating states, is committed to contributing 100,000 hectares of farmland to this national initiative.
“Through the CBN/Bankers Committee’s N500 billion RSSF-DCRR Funding Facility, we aim to access N120 billion over the next decade to revolutionize our oil palm sector. This is not merely an investment in agriculture; it is an investment in the future of Delta State.”
The Governor held that since the the establishment of DELCOM COOP on 04 August, 2020, “we have achieved remarkable milestones. ”
He said, “Starting with 41 Limited Liability Companies and 1,971 Smallholder Farmers, DELCOM COOP has now expanded to encompass 145 companies and 3,080 Smallholder Farmers.
“This exponential growth reflects the steadfast support of the Delta State Government and the collective resolve of our stakeholders.
“A cornerstone of our success is the adoption of the Delta State Model – a community-centric approach that places both land and wealth in the hands of our people.
“Through the Community Land Release and Participatory Model, 68 host communities across Delta North, Central and South, have generously released 130,000 hectares of dormant arable land, surpassing our initial target of 100,000 hectares.
“Of this, 10% is reserved for the benefit of indigenes, while 22% of the annual net profit from commercial operations will be allocated to the communities.
“This model ensures that our people are not merely beneficiaries but active participants and stakeholders in this transformative project.”
He disclosed that the state would establish six strategic hubs for the aggregation and processing of Fresh Fruit Bunches (FFB) into high-value products such as palm oil, palm stearin and organic fertilizer.
“The DELCOM Project is being implemented in phases. The first phase targets 30,000 to 35,000 hectares and involves the establishment of two oil mills, with an estimated cost of $150 million, within the first two years.
“To demonstrate our commitment, the Delta State Government has already approved a N25 billion ISPO guarantee for Tranche 1 of Phase 1.
“Sustainability lies at the core of this project. DELCOM COOP has posted a counter-guarantee to the Delta State Government, ensuring the project can self-finance its second phase of 65,309 hectares.
“This is supported by the cultivation of intercrops such as cassava, maize, soyabeans and sorghum, which will be harvested and sold to appointed off-takers within the first 12 months of the project.
“By revolutionizing our oil palm industry, we are generating meaningful economic opportunities for our people, particularly in rural areas, where access to finance and infrastructure has historically been limited.
“We are also fostering peace and security by empowering communities and ensuring that they have a vested interest in the success of this project.
“To our traditional rulers, community leaders and stakeholders, I urge you to sustain your invaluable support for this initiative. Your cooperation and commitment have been pivotal to our achievements thus far and I am confident that, together, we will achieve even greater milestones,” he added.
Oborevwori emphasized that the transformation of Delta State’s oil palm industry was not just a government project; but a collective endeavour requiring the dedication of all stakeholders.
He said, “Together, we can unlock the immense potential of this sector, create wealth and build a brighter future for generations to come.”
Earlier, Secretary of DELCOM, Dr Felix Okonti, said DELCOM COOP hoped to lift two million Deltans out of poverty and create 15,000 millionaires 1,080 billionaires in Delta by the year 2032 through the oil palm projects initiative.
He said a new foreign private equity funding was being processed to secure $900 million for DELCOM COOP’s 100,000 hectares plantations and six large scale 150 MTPH FFB Oil Mills Projects Development.
He added that the DELCOM Project had the capacity to generate more than 288,700 jobs in the first instance and one million jobs in the long run.
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