A Nigerian agro-allied company, Food Industrial Park Limited (FIPL), has signed a Memorandum of Understanding (MoU) with Best Engineering Technologies, a firm based in Hyderabad, India, to offtake essential oils produced locally. The deal is expected to support the production of 500 tonnes of essential oils annually and create employment for over 1,250 youths and women across Nigeria.
The development was confirmed in a statement issued in Akure, Ondo State, on Tuesday, by the Chief Executive Officer of Food Industrial Park Limited, Mr. Michael Anibi. According to Anibi, the partnership is a result of collaborations and strategic alliances among several Nigerian stakeholders, including farmers, agro-processors, and technical experts.
Mr. Anibi said that the project will involve the cultivation of about 3,000 hectares of aromatic crops across three states—Ogun, Oyo, and Kogi. The crops to be cultivated include lemongrass, basil, thyme, ginger, and turmeric. These crops are key sources of essential oils used in pharmaceuticals, cosmetics, and the food and beverage industry.
He further revealed that the company plans to engage 1,250 youths and women in various stages of the value chain, from farming to processing. According to him, each participant is expected to earn over ₦1 million per year, helping to reduce unemployment and boost income levels in rural communities.
“The stakeholders involved in Nigeria include farmers, processors, and technical professionals. We will be cultivating 3,000 hectares of aromatic crops, and over 1,250 youths and women will be engaged in the project,” Anibi stated. “This project will generate not only revenue for local farmers but also high-quality essential oils for export.”
The initiative is also expected to enhance Nigeria’s participation in the global essential oils market, which has been growing steadily due to increasing demand for natural ingredients in wellness and personal care products.
Preliminary activities have already started at selected project sites, including Food Industrial Park Abeokuta in Ogun State, the Tede Agri Industrial Cluster in Oyo State, and Food Industrial Park Lokoja in Kogi State. These locations will serve as major hubs for the cultivation, processing, and packaging of the oils.
During an inspection visit to the facilities, Mr. Pavan Kumar, a representative of Best Engineering Technologies, expressed satisfaction with the level of preparedness he observed at the project locations. Kumar visited Abeokuta, Tede, Ofodo, and Lokoja as part of a tour to assess the readiness of Nigerian partners.
“We have visited Abeokuta, Tede, Ofodo, and Lokoja. I am really impressed by the readiness of our partners here in Nigeria, and I believe the results will be great,” Kumar said. He added that Best Engineering Technologies would not only offtake the oils produced but also provide technical support and training to local operators to ensure global quality standards are met.
The MoU signifies a new opportunity for technology and knowledge transfer between Nigeria and India in the agro-industrial sector. It is also expected to strengthen the supply chain for essential oils in Nigeria while attracting more international investors into the country’s agriculture and manufacturing sectors.
The agreement comes at a time when the Nigerian government and private sector players are exploring new ways to boost export earnings and reduce reliance on crude oil by investing in non-oil products like spices and herbal extracts. With the support of local and international stakeholders, the Food Industrial Park project is likely to play a major role in diversifying Nigeria’s agricultural exports.
