The Federal Government has revealed that Nigeria produces about 1.4 million metric tonnes of palm oil each year, falling short of the country’s domestic demand estimated at over 2.5 million metric tonnes.
This was disclosed in Abuja during a national stakeholders’ meeting focused on expanding Nigeria’s palm oil production capacity, organised by the Federal Ministry of Agriculture and Food Security.
Representing the Minister of Agriculture and Food Security, Senator Abubakar Kyari, Mr Ibrahim Alkali highlighted the urgent need to strengthen the sector and close the production gap.
He described the meeting as a critical platform for aligning policies, attracting investment, and driving coordinated action to revitalise the palm oil industry in Nigeria.
According to the minister, Nigeria once dominated global palm oil production in the 1960s, contributing more than 40 percent of global supply and serving as a major exporter.
However, he noted that production levels have declined significantly over the decades, leaving the country reliant on imports to meet local demand.
The supply shortfall, estimated at over one million metric tonnes annually, has resulted in import costs ranging between 500 million and 600 million dollars each year.
Kyari warned that the situation represents a loss of economic opportunities, as Nigeria continues to import products it has the capacity to produce locally.
Despite these challenges, he emphasized that Nigeria has over three million hectares of land suitable for oil palm cultivation, much of which remains underutilised.
He also pointed to the growing global demand for palm oil, with the international market valued at more than 70 billion dollars across industries such as food processing, cosmetics, pharmaceuticals, and biofuels.
The minister stressed that the key challenge is not resource availability but the need for effective coordination, investment, and large-scale production strategies.
He added that the Federal Government, under President Bola Tinubu’s Renewed Hope Agenda, is prioritising agriculture as part of its economic diversification efforts.
As part of these initiatives, the government has validated the National Oil Palm Development Strategy to drive sectoral growth and improve productivity.
Kyari called on stakeholders, including investors, farmers, and industry players, to collaborate in unlocking the full potential of Nigeria’s palm oil sector.
Also speaking, Permanent Secretary of the ministry, Dr Marcus Ogunbiyi, described the meeting as timely, noting that collective commitment is essential for transforming the industry into a globally competitive sector.
In a presentation, Mr Emmanuel Anyaralu, Managing Director of Mass Industrial Development and Logistics, outlined strategies to boost production through partnerships, job creation, and rural economic development.
He noted that expanding palm oil production would not only improve food security but also generate employment opportunities and strengthen Nigeria’s economy.
