Nigeria's palm oil import bill surges 194% to N23bn

Nigeria's import bill for palm oil has dramatically increased, reaching N23.16 billion in the first quarter of 2026. This represents a 194.4 percent rise compared to the same period in 2025. The figure also shows a 65.4 percent increase from the previous quarter, Q4 2025.

Despite favorable conditions for palm tree growth in Nigeria, the country faces a significant supply deficit. Annual consumption stands at approximately 2.4 million tonnes, while local production only reaches 1.5 million tonnes. This gap of about 900,000 metric tonnes is primarily filled through imports from West Africa and Asia.

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persistent import-driven competitive pressures have continued to impact domestic Palm oil prices.

Industry stakeholders express concern over the impact of imports on domestic prices and local producers. Graham Hefer, Managing Director of Okomu Oil Palm Plc, highlighted that "persistent import-driven competitive pressures have continued to impact domestic Palm oil prices." He warned that "the influx of unwholesome and poorly taxed foreign Palm oil into the local market is undercutting domestic producers," posing a severe threat to local investments and expansion initiatives.

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the influx of unwholesome and poorly taxed foreign Palm oil into the local market is undercutting domestic producers, warning that unbridled importation poses a severe threat to local investments and threatens the survival of local oil palm expansion initiatives.

Dr. Alphonsus Inyang, President of the National Palm Producers Association of Nigeria (NPPAN), suggested the actual import bill might be even higher. He attributed the rising demand to increasing urbanization, with nearly half of Nigeria's population now residing in urban centers. This trend fuels consumption of palm oil-based products like bread, cosmetics, and detergents. Inyang stated, "Urbanization is driving growth and demand for palm oil, and it will continue to do that because Nigeria’s population grows at about 3.5%, and the production demand for palm oil grows at 2.2% per year in Nigeria."

NPPAN is collaborating with government bodies to address the issue, emphasizing the need for strategic planning to meet growing demand and support local production.

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Urbanization is driving growth and demand for palm oil, and it will continue to do that because Nigeria’s population grows at about 3.5%, and the production demand for palm oil grows at 2.2% per year in Nigeria. And with the youngest population in the world, we see that this demand will continue to grow.