In a bold move to protect the edible oil industry from rampant smuggling and promote local production, the Oil Palm Development Association of Ghana (
In a bold move to protect the edible oil industry from rampant smuggling and promote local production, the Oil Palm Development Association of Ghana (OPDAG) and the National Food and Buffer Stock Company (NAFCO) have entered into a strategic partnership aimed at reinforcing the country’s food sovereignty and economic resilience
The agreement, announced at a joint press conference in Accra, seeks to establish a robust monitoring system to track the source and quality of edible oils supplied across Ghana—particularly those distributed under government programmes such as the Ghana School Feeding Programme.
The partnership comes against the backdrop of a growing crisis in the edible oil market, where smuggled and untaxed products have been undermining local manufacturers, distorting market prices, and eroding government revenue.
Over the past few years, the domestic oil producers have struggled to compete with cheaper, illegal imports that evade taxes and quality control standards, leading to job losses and reduced investment in the local agro-processing sector.
Addressing the press, OPDAG President Paul Kwabena Amaning described the influx of smuggled oil products as a major economic and public health concern.
“Smugglers are taking advantage of tax loopholes to flood the market with cheaper, untaxed oil,” Amaning warned.
“We need to collaborate to stop this practice and ensure that only locally produced and certified oil is supplied to schools and other public institutions.”
To counter this, OPDAG and NAFCO plan to roll out a blockchain-based traceability system that will allow regulators and suppliers to verify the origin, quality, and authenticity of edible oils.
The initiative is expected to strengthen transparency and ensure that all oils used in national feeding programmes meet Food and Drugs Authority (FDA) standards.
Paul Amaning revealed that OPDAG already has an operational traceability framework that can be extended to NAFCO’s network of suppliers.
He appealed to all edible oil producers and distributors to register with OPDAG to ensure full compliance and accountability.
“We are ready to integrate our system with NAFCO’s supply chain. Sharing supplier data will help both institutions to prevent smuggling and guarantee that quality products reach the consumer,” he added.
On his part, NAFCO Chief Executive Officer, George Abradu-Otoo reaffirmed the company’s support for the initiative, emphasizing that the collaboration aligns with government efforts to promote local industry and reduce import dependency.
“Our collaboration with local oil producers aims to promote home-grown industry, reduce smuggling, and ensure that schools under the Buffer Stock programme receive only quality vegetable and palm oil,” he stated.
Abradu-Otoo further hinted that the partnership will extend beyond edible oils to cover other essential commodities such as rice and grains, under the broader National Buffer Stock programme—part of Ghana’s strategy to safeguard food security and stabilize prices.
Both institutions pledged to sustain the partnership as a long-term strategy to boost local production, protect jobs, enhance food safety, and ensure that the agricultural sector contributes meaningfully to national development.
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