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Why is Nigeria a world leader in the palm oil market?
N igeria was considered the world leader in the palm oil market in the 1950s and 1960s when agricultural products like palm oil and cocoa were the key commodities generating foreign exchange for the country. However, this is not the case, as the sector suffers neglect.
Where does palm oil come from?
China and Malaysia were the main origins of palm oil imports as of the fourth quarter of 2026. Analysts believe that within the last decade, there has been incremental planting of oil palm in the country with far greater awareness of opportunities in the sector. But this is yet to meet local demand.
How much palm oil is used?
Nonetheless, only a negligible percentage of palm oil consumed is used by households. Most are for industrial use. According to the USDA, in 2018, Nigeria imported about 401, 000 MT I palm oil. This was 23.4 per cent higher than the volume imported in the preceding year.
Why is palm oil declining?
The farmers blamed Nigeria’s decline in palm oil production on a lack of government presence across the value chain. “The government is not encouraging individual farmers. It is self-effort that is making us produce the palm oil we are seeing today,” Mr Pius said.