Nigeria's palm oil boom still falls short of soaring demand
Nigeria's palm oil industry has seen steady growth over the past five years, with production reaching 1.57 million tonnes in 2025. Despite this increase, the country still faces a significant supply gap, relying on costly imports to meet rising domestic demand. Over 80% of the nation's palm oil comes from smallholder farmers using outdated techniques, limiting efficiency and competitiveness.
Nigeria was once a global leader in palm oil production, thanks to the crop's origins in West Africa. However, domestic output has struggled to keep pace with consumption, which climbed from 2.45 million tonnes in 2020 to 2.61 million tonnes in 2025. The shortfall—exceeding 1 million tonnes—forces the country to spend around $600 million annually on imported palm oil.
The Council of Palm Oil Producing Countries (CPOPC) has pledged to strengthen cooperation with Nigeria, offering technical and policy support. Their aim is to help boost local production and improve food security. Yet, no recent data confirms government or international efforts to modernise smallholder farming, which remains the backbone of the sector.
Smallholder farmers dominate Nigeria's palm oil output, but their reliance on old methods hampers productivity. Without targeted interventions, the gap between supply and demand is likely to persist.
Nigeria's palm oil sector continues to expand, but production still falls short of national needs. The reliance on imports highlights the need for investment in smallholder farming. The CPOPC's support could play a key role in addressing these challenges and reducing dependency on foreign supplies.
