Lang
Nigeria’s federal government has unveiled a comprehensive national strategy to revive its once-dominant palm oil industry, targeting a 10% share of the global market, the creation of up to two million jobs within six years, and self-sufficiency by 2050.
A validation meeting held by the Federal Ministry of Agriculture and Food Security in Abuja on April 2, 2026, outlined the Nigeria Oil Palm Development Strategy. Officials said the strategy will support food security, rural transformation, industrial growth, job creation, and export diversification.
The strategy includes a decades-long policy framework, the Oil Palm Development Policy and Strategy 2026–2050, which sets out measures to increase yields, expand cultivated areas, and modernize processing infrastructure. It also proposes institutional reforms to improve sector governance and attract private investment.
Beyond agriculture, the plan introduces institutional reforms to structure sector governance. These include the establishment of a National Palm Oil Council, along with dedicated financing mechanisms such as a sector development fund and a special fund for small producers.
The strategy prioritizes smallholder farmers, who account for more than 80% of production, by improving access to better seedlings, training in climate-smart practices, and financial incentives for replanting.
Key initiatives include a directive to plant 100 million oil palm trees across the country, upgrade ageing mills, and launch the National Palm Oil Traceability System (NaPOTS) to fight fraud and meet export standards in markets such as the European Union.
Industry groups such as the Oil Palm Growers Association of Nigeria (OPGAN) and the Plantation Owners Forum of Nigeria (POFON) have pledged support, with a goal of expanding plantations by 1.5 million hectares by 2029.
The move addresses long-standing challenges such as low yields, ageing trees, and weak infrastructure, positioning palm oil as a cornerstone of food security and economic diversification.
By strengthening links between farmers, processors, and exporters, the plan aims to lift Nigeria from fifth to third place globally, allowing it to compete more closely with Indonesia and Malaysia.
At present, domestic production covers only 75% of local market demand. In its latest global oilseed market report, the US Department of Agriculture (USDA) forecasts Nigeria’s palm oil production at 1.5 million tonnes in 2026, unchanged from the previous year, while consumption is estimated at around 1.95 million tonnes.
The current production shortfall is filled through imports. According to the USDA, Nigeria imports around 92% of its palm oil from Malaysia, with the rest coming from Ghana, Indonesia, and Côte d’Ivoire.
In addition, significant volumes of unrecorded palm oil derivatives enter the Nigerian market through informal cross-border channels from neighboring West and Central African countries, including Benin, Togo, and Cameroon.
Internationally, Nigeria currently holds observer status at the Council of Palm Oil Producing Countries (CPOPC), with that status set to expire in November 2026. Officials are working to ensure a smooth transition to full membership before the deadline.
The validated roadmap, supported by stakeholders including farmer cooperatives and development partners, sets implementation timelines, with federal and state coordination through a 16-member inter-agency committee.
Successful implementation could restore Nigeria’s leadership in agribusiness and support the pharmaceutical, cosmetics, animal feed, edible oils, and biofuel industries, while empowering women and young people in rural economies.