....Accuses Customs, NAFDAC, SON of enforcement failure
Despite the retention of vegetable oil on the Federal Government's prohibition list under the 2026 fiscal policy measures, the National Chairman of the Vegetable/Edible Oil Producers Association of Nigeria (VEOPAN), Okey Ikoro, said the local market is still dominated by more than 100 imported oil brands, warning this threatens investments and discourages backward integration in the sector.
Speaking on Arise News, Ikoro disclosed that association members intercepted three trailers two days ago transporting smuggled vegetable oil through the Badagry axis.
Ikoro, while reviewing the effect of the 2026 fiscal policy measures on the vegetable oil sector of the Nigerian economy, accused the Nigeria Customs Service, National Agency for Food and Drug Administration and Control (NAFDAC), and the Standards Organisation of Nigeria, (SON) of failing to enforce ban.
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He said: "The 2023 fiscal policy definitely placed vegetable oil under prohibition and a lot of milestones were gained because it was a long-time policy from 2023 to 2026. A lot of companies went into backward integration, huge companies like Okomu, Presco, and PZ Wilmar, all of them went into major expansion because the policy gave protection to the industry.
"But two years later, entering 2024 and 2025, there was a total collapse of implementation on the side of the agencies that were supposed to monitor the fiscal policy, especially in the area of prohibition of items. We noticed that the markets were flooded with imported vegetable oil despite the fact that the item was under prohibition. If you go into the local market, you will see more than 100 brands of vegetable oil coming in from outside the country, in yellow jerry cans with funny labels. Nobody is monitoring. NAFDAC is not doing its job.
"This resulted in a lot of losses and setback to the companies. Companies would have borrowed huge sums of money to put into their backward integration because oil palm is a long gestation investment. Before you can start getting returns, it takes a minimum of five years.
He questioned the quality and safety of the imported products saying, "All the vegetable oils produced in Nigeria are regulated. NAFDAC visits the factories regularly and tests the products to ensure they meet fortification and quality standards. But the imported oil just comes in and nobody is monitoring it. They do not carry NAFDAC numbers or labels, yet they are all over the market."
