In a country where policy reversals and execution lapses frequently stymie industrial expansion, Nigeria’s palm oil industry is quietly defying the trend. The industry has seen a revival, guided by the Agricultural Transformation Agenda (ATA), which was launched in 2011 and sustained by succeeding administrations, thanks to private sector investment and a somewhat cohesive industrial policy.

Trade data for 2024 reveals a more than 25 per cent decline in Nigeria’s palm oil imports from Malaysia and Indonesia, a sign of reduced dependency on foreign supply. Yet, the journey to self-sufficiency and global competitiveness remains long, challenged by structural, environmental, and institutional barriers.

The seeds of revival were planted during Goodluck Jonathan’s presidency under the leadership of Akinwumi Adesina, then Minister of Agriculture and now President of the African Development Bank. 

His strategy blended tax holidays, subsidised capital, protective tariffs, and land acquisition support to encourage firms into refining and plantation development.

This policy brought tangible results. Industry giants such as PZ Wilmar, Okomu, Presco, Dufil Prima Foods, and Agri Palm Limited collectively invested billions of naira in large-scale plantations across Cross River and Edo States. 

Some now span tens of thousands of hectares, supplying palm oil for food, cosmetics, and emerging uses such as biofuels and aviation fuel.

According to the Food and Agriculture Organisation (FAO), Nigeria’s oil palm fruit production increased from 10 million metric tonnes in 2019 to 11.6 million in 2023, a 16 per cent rise. This growth has contributed to declining palm oil imports, offering modest relief to the nation’s volatile foreign exchange reserves.

Nigeria has followed the right industrial policy approach: selecting a sector with comparative advantage, creating strong investment incentives, and maintaining policy consistency long enough for results to emerge.

Source: Business Day