Nigeria continues to grapple with a significant palm oil supply gap, as domestic demand far exceeds local production despite the country’s strong potential to expand the sector.

Annual demand for palm oil in Nigeria surpasses 2.5 million metric tons, while current production stands at დაახლოებით 1.4 million tons. This shortfall of over 1 million tons has forced the country to rely heavily on imports, increasing pressure on foreign exchange and the broader agricultural economy.

The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed these figures during a national stakeholders’ meeting in Abuja focused on revitalizing the palm oil industry.

He noted that Nigeria was once a global leader in palm oil production during the 1960s, accounting for more than 40% of global output. At the time, palm oil was a key export commodity and a major contributor to economic growth. However, production has declined significantly over the decades, leading to the current deficit.

The supply gap now results in annual import costs estimated between $500 million and $600 million, highlighting both lost revenue opportunities and the urgent need for sector reforms.

Despite these challenges, Nigeria has more than 3 million hectares of land suitable for oil palm cultivation. Kyari emphasized that the issue is not a lack of natural resources, but rather limited production scale and weak coordination across the value chain.

Meanwhile, global demand for palm oil remains strong, with the market valued at over $70 billion annually due to its widespread use in food processing, cosmetics, pharmaceuticals, and biofuels.

Under the leadership of Bola Tinubu, the federal government has placed agriculture at the center of its reform agenda. Through the Renewed Hope initiative, efforts are being made to increase local production, create jobs, and strengthen food security.

As part of these efforts, a new national strategy has been introduced to raise Nigeria’s share of the global palm oil market to 10%. The plan also aims to create up to 2 million jobs within six years and achieve full self-sufficiency by 2050.

Key measures include expanding oil palm cultivation, improving processing capacity, and strengthening market linkages. The strategy also proposes the establishment of a National Palm Oil Council and new funding mechanisms to support sector growth, particularly for smallholder farmers who account for the majority of production.

Overall, bridging Nigeria’s palm oil deficit will require sustained investment, stronger coordination, and effective implementation of reforms to unlock the country’s full agricultural potential.