Nigeria’s crude palm oil (CPO) imports from top global producing nations declined 26.2 percent in 2024 as local production rose due to increased investments, data from the National Bureau of Statistics (NBS) show.
Nigeria’s CPO import declined from N17.03 billion in 2023 to N12.6 billion in 2024, the NBS said, despite a worsened FX scarcity and weaker naira.
Experts attribute the decline to the ongoing massive investments by plantation owners in the country, which has boosted local production in the last five years.
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Big players like PZ Wilmar, Dufil Prima Foods, Agri Palm Limited, Nosak, Presco, and Okomu are investing massively and developing backward integration projects in oil palm across the country.
“Our palm oil production is now above the 1.4 million metric tons mark. In fact, it should be around 2.5 million metric tons now,” said Henry Olatujoye, former president of Palm Produce Association of Nigeria.
“There have been lots of investment in the sector over the past three years, spurring local production,” he noted.
Olatujoye noted that “data for companies like PZ Wilmar and JB Farms are not captured,” noting that this would better paint a more accurate picture of where the country is in terms of production.
Nigeria’s palm oil narrative is gradually changing for good with the private sector tapping opportunities to create wealth and boost productivity amid government policies. Local production stood at less than 700,000 MT and 800,00 MT a decade ago.
Investor confidence boosting production
Palm oil makers’ huge financial profits, especially Okomu and Presco, are proving that the sector holds enormous gains for those interested in seizing its opportunities.
In 2022, JB Farms, a big player in the palm oil sector, expanded its palm plantation through an additional 10,000 hectares of land in Ore, Ondo State, adding to its list of acquisitions across other states.
Olatujoye said that the major reason for the decline in importation is the foreign exchange (FX) crunch, which is “forcing local producers to buckle up on how to boost production.”
Ella Lakes and Presco Plc — two major players in the sector — are currently raising N250 billion in equity to expand their plantations, which would invariably increase production.
For Ella Lakes, this would position it to become one of Nigeria’s top-tier palm oil players by 2027, transitioning from a small-scale agricultural firm into an integrated agribusiness. Presco, on its part, aims to scale its plantation expansion beyond the shores of Africa’s most populous country.
As industries’ appetite for palm oil becomes insatiable and FX scarcity hampers importation, there is no better time than now to invest in the sector, noted Alphonsus Inyang, president of Palm Produce Association of Nigeria.
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“We are now seeing new plantations springing up daily as the use of palm oil rises continuously,” he told BusinessDay. “Palm oil is now used as biodiesel and aviation fuel. The usage is growing and this is spurring investments from existing players and new entrants.”
Oil palm can produce more oil than any other oilseed crop. About 90 percent of palm oil is used in the production of foods, while the remaining 10 percent is used by the non-food industry, industry players say.
Foods such as noodles, vegetable oil, biscuits, chips, margarines, shortenings, cereals, baked stuff, washing detergents, and even cosmetics are made from palm oil.
The Nigerian government recently inaugurated the National Palm Oil Traceability Framework and Inter‑Agency Committee to modernise the palm oil value chain, tackle quality issues, and open up export opportunities.
The move stands a chance of making a difference in the sector.
According to Olatujoye, “People who are knowledgeable about the palm oil sector are part of committee.”
