Nigeria’s Palm Oil Imports Surge 487% to N91.62bn

By Diden Abigail Owuntarose

Nigeria’s crude palm oil import bill surged by 486.94 per cent year-on-year to ₦91.62bn in the first half of 2026, highlighting the widening gap between domestic production and industrial demand.

Data from the National Bureau of Statistics’ (NBS) Foreign Trade in Goods Report showed that the country spent N91.62bn on crude palm oil imports between January and June 2026, compared with N15.61bn recorded in the corresponding period of 2025.

A breakdown of the figures showed that imports increased from N7.87bn in the first quarter of 2025 to N23.16bn in the corresponding period of 2026.

In the second quarter, the import bill rose sharply from N7.74bn in 2025 to ₦68.46bn in 2026, indicating increased dependence on foreign supplies to meet domestic demand.

The development comes amid concerns over Nigeria’s inability to adequately meet the requirements of food manufacturers and other industries that rely on palm oil as a major raw material.

the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, said the country continued to face a significant production shortfall, estimated at about 1.5 million tonnes.

He warned that increased importation would not address the underlying challenges facing the domestic industry, calling for greater investment in local production.

According to him, ageing plantations require rehabilitation and regeneration to improve productivity and strengthen the country’s capacity to meet growing demand.

Banjoko identified major industry players, including Okomu Oil Palm Company and Presco Plc, alongside medium- and small-scale producers, as important contributors to efforts to close the supply gap.

He said sustained investment in existing plantations, new production facilities and improved agricultural practices would help reduce dependence on imported palm oil.

The industry stakeholder also warned that continued importation could discourage domestic investment by exposing local producers to competition from foreign suppliers.

Nigeria remains Africa’s largest palm oil producer, but domestic output has struggled to keep pace with consumption requirements.

Palm oil is widely used in food processing, soap and detergent manufacturing, cosmetics, pharmaceuticals and other industrial applications, making it an important commodity across the agricultural and manufacturing value chains.

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The growing import bill also raises concerns about foreign exchange outflows and the country’s broader efforts to strengthen domestic agricultural production and reduce import dependence.

Meanwhile, foreign interest in Nigeria’s palm oil market has continued to expand amid rising demand and the domestic supply deficit.

The Malaysia Palm Oil Council has identified Nigeria as a key market for Malaysian palm oil exports, with shipments reaching approximately 300,000 metric tonnes in 2025.

The council has expressed interest in expanding its presence in the country, reflecting the growing opportunities presented by Nigeria’s palm oil consumption.

Industry stakeholders have continued to call for improved access to financing, modern processing facilities, high-yielding seedlings and technical support for smallholder farmers.

They believe addressing these challenges would improve productivity, attract investment and strengthen Nigeria’s position in the global palm oil market.

The latest figures underscore the urgency of expanding domestic production as Nigeria seeks to reduce agricultural imports, conserve foreign exchange and support local manufacturing.