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Nigeria's food and soap processors imported palm oil valued at N287 billion (approximately US$205 million) from Malaysia during the first half of 2026, as the country continues to grapple with an annual supply deficit estimated at 900,000 metric tonnes, according to data from the Malaysian Palm Oil Board (MPOB).
The MPOB figures show that a total of 183,000 tonnes of palm oil were shipped to Nigeria between January and June 2026, at an average export price of US$1,122 per tonne. Volumes were distributed across the two quarters, with shipments of 95,000 tonnes recorded in Q1 and 87,000 tonnes in Q2.
A monthly breakdown indicates that imports reached 36,000 tonnes in January, 26,000 tonnes in February, and 33,000 tonnes in March. In the second quarter, April shipments totalled 30,000 tonnes, May shipments 27,000 tonnes, and June shipments 31,000 tonnes.
Malaysia remains Nigeria's dominant Asian supplier, accounting for roughly 85 per cent of the country's direct palm oil imports from the region. In 2025, Malaysian exports of palm oil to Nigeria totalled approximately 300,000 metric tonnes.
The import surge reflects a steep year-on-year rise. According to Nigeria's National Bureau of Statistics (NBS), the country's palm oil import bill climbed 194.4 per cent year-on-year to N23.16 billion in Q1 2026, up from N7.87 billion in the corresponding period of 2025. The figure also marked a 65.4 per cent quarter-on-quarter increase from N14 billion in Q4 2025.
Nigeria currently consumes approximately 2.4 million tonnes of palm oil annually, while domestic production stands at around 1.5 million tonnes. The resulting supply gap of roughly 900,000 metric tonnes is largely filled through imports from West African and Asian markets. Around 80 per cent of local production comes from smallholder farmers reliant on manual processing techniques, while the remaining 20 per cent is handled by larger processors including Okomu Oil Palm Plc and Presco Plc.
Industry leaders have raised concerns about the impact of rising imports on domestic producers. Graham Hefer, Managing Director of Okomu Oil Palm Plc, noted that persistent import-driven competitive pressures continue to weigh on local palm oil prices. He warned that the influx of unwholesome and poorly taxed foreign palm oil is undercutting domestic producers, and cautioned that unbridled importation poses a severe threat to local investments and the survival of domestic oil palm expansion initiatives.
Dr. Alphonsus Inyang, President of the National Palm Producers Association of Nigeria (NPPAN), suggested that the actual import bill could be even higher than officially reported. He estimated Nigeria's annual palm oil consumption at around three million tonnes, with local production covering roughly half of that figure. The remaining gap is filled by imports from Indonesia, Ghana, Côte d'Ivoire, Benin, Togo, and Cameroon, alongside output from major local processors such as Presco and Okomu.
Inyang linked the rising demand to rapid urbanisation, noting that approximately 49 per cent of Nigerians now live in urban centres. This shift is driving consumption of palm oil-based products, including bread, cosmetics, baby formula, detergents, soap, and margarine.
Source: New Telegraph