‎Is Nigeria ready to reclaim its position as a global palm oil leader?

‎By Caleb Ohaeri

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‎ Nigeria’s Palm Oil production potential is incredibly enormous and can compete on the world stage.
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‎Nigeria has over 10 million hectares of arable land suitable for oil palm cultivation, with the potential to increase output significantly.

The country once produced 43% of the world’s palm oil in the 1960s but has since fallen behind, according to the US Department of Agriculture the country is now producing only 2% of global supply. Nigeria consumes about 1.5 million metric tons of palm oil annually, most of which is imported, with over 60% of domestic consumption being imported despite the country’s vast agricultural land.

While these statistics vary and extend over the years, there are vast opportunities for Growth. With demand for palm oil expected to grow at 4% annually, there is significant potential for Nigeria to expand its production and market share.

The global palm oil market was valued at approximately $70.44 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 5.1% from 2024 to 2030, reaching around $100 billion by 2030.
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‎Strategic investments in oil palm estates and processing mills can increase value-added output, boosting profitability. As sustainability becomes a global priority,

Nigeria can leverage sustainable palm oil certification to access premium markets. By addressing infrastructure gaps, modernizing processing methods, and leveraging its vast agricultural potential,

Nigeria can capture a significant portion of the global palm oil market and reclaim its position as a leading producer of palm oil.
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