Lang
Nigeria, the world's fifth-largest palm oil producer and the leading producer on the African continent according to the United States Department of Agriculture (USDA), imported crude palm oil worth approximately N68 billion from three West African countries in the second quarter of 2026, according to trade data from the National Bureau of Statistics (NBS).
The shipments, sourced from Liberia, Côte d'Ivoire and Ghana between April and June 2026, highlight a widening gap between domestic output and rising consumption needs.
Nigeria produces roughly 1.5 million metric tons of palm oil annually, equivalent to about 2% of global output, placing it behind Indonesia, Malaysia, Thailand and Colombia, according to the Council of Palm Oil Producing Countries and the National Palm Produce Association of Nigeria.
Yet import volumes have climbed sharply. Nigerian businesses brought in crude palm oil worth N23 billion in the first quarter of 2026. The figure then rose to approximately N68 billion in the second quarter, nearly tripling quarter-on-quarter.
The Q2 breakdown shows imports of N51 billion from Liberia, N15 billion from Côte d'Ivoire and N2 billion from Ghana.
Palm oil plays a central role in Nigeria's economy, serving as a key input across food production, cosmetics, pharmaceuticals, soap and detergent manufacturing, and broader industrial applications. Households and food processors alike depend heavily on the commodity.
Despite this strategic importance, domestic supply has struggled to keep pace with demand, driven by rising consumption, limited farm productivity and persistent bottlenecks across the agricultural value chain.
The Central Bank of Nigeria (CBN) launched its Oil Palm Development Initiative in 2019 with the goal of closing an estimated annual supply gap of 1.25 million metric tonnes, while also developing the value chain, creating jobs and supporting economic diversification.
The 2026 import figures, however, suggest that significant headwinds remain. Critics have also pointed to underinvestment in major palm plantations across the country and the need for stronger government support to smallholder farmers, who represent the bulk of Nigeria's farming population.
Source: Sahara Reporters