Nigeria is stepping up efforts to reduce its growing palm oil import bill as the federal government and private sector investors move to expand local production and close a supply gap that currently costs the country up to $600 million annually.
The country produces about 1.4 million metric tonnes of palm oil each year, while domestic demand stands at more than 2.5 million metric tonnes, leaving a deficit of over 1 million metric tonnes that continues to drive imports and strain foreign exchange reserves.
The situation has also slowed the development of Nigeria’s agro-industrial value chain, particularly in rural farming communities where palm oil production remains a key source of livelihood.
In response, the government says it is strengthening partnerships aimed at increasing cultivation, improving yields, expanding processing capacity, and integrating smallholder farmers into structured value chains.
Minister of Agriculture and Food Security Abubakar Kyari said the initiative is anchored on the National Oil Palm Development Strategy and is designed to deliver a coordinated expansion of the sector.
Speaking through his senior special assistant (technical), Ibrahim Alkali, at a stakeholders’ meeting in Abuja, the minister said the approach brings together government institutions, private investors, research bodies, commodity associations, and development partners under a unified framework.
A major component of the plan is a private sector-led proposal by Mass Industrial Development and Logistics Limited to establish seven integrated oil palm estates, each covering 10,000 hectares across participating states.
The estates are expected to function as full agro-industrial hubs, combining cultivation, processing, logistics, and community development within the same system.
“This strategy is practical, inclusive, and action-oriented. It brings together government institutions, research bodies, private sector operators, commodity associations, and development partners under a shared framework designed to expand production, improve yields and strengthen processing capacity.”
“This initiative has the potential to create over 100,000 direct and indirect jobs, save up to 500 million dollars annually through import substitution, and generate new streams of export revenue”, the minister said.
The project is also expected to strengthen Nigeria’s position in both domestic and international palm oil markets by unlocking value across the entire supply chain, from cultivation to manufacturing and export.
Stakeholders noted that with over three million hectares of suitable land and increasing global demand estimated at more than $70 billion, Nigeria has strong potential to reduce imports and regain competitiveness in the sector.
Managing Director of Mass Industrial Development and Logistics Limited, Emmanuel Obiorah, said the investment model is designed to encourage inclusive ownership and broad participation.
He stated that about 350,000 beneficiaries are expected across the seven estates, with each 10,000-hectare plantation capable of producing up to 40,000 metric tonnes of crude palm oil annually.
