One of Nigeria’s leading palm oil manufacturers Okomu Oil has posted a significant growth in revenue, buoyed by the devaluation of the country’s currency, the naira.
The palm oil producer said it recorded a revenue of N14.3 billion in 2016, as against N9.7 billion recorded in 2015. This was disclosed at the company’s annual general meeting by Mr Gbenga Oyebode, Chairman of Board of Directors.
He revealed that the margin in revenue growth was helped by the currency devaluation, ushered in after a protracted tight forex policy aimed at shoring up the country’s foreign reserves in the face of dwindling oil revenues.
“The past year was conceivably the most difficult time in many years for Nigeria; what with the low crude oil prices, the devaluation of the naira, and the on-going paucity of foreign exchange, inflation which together led the economy into recession this year.
“Notwithstanding these strong headwinds, our company, aided by the currency devaluation, continued fiscal discipline by management, by government policies, managed to perform admirably under the circumstances.”
He further noted that Local Crude Palm Oil(CPO) prices, mainly as a result of changes in policy, combined with the effects of devaluation and inflation, resulted in average increase in the naira price of CPO by 55 percent in 2016