Nigerian Oil Palm Growers Plan to Replant 1.5 Million Hectares on Rising Demand

Oil palm growers in Nigeria plan to replant 1.5 million hectares of land over the next five years across 27 oil palm-producing states.

The plan aims to benefit from rising local and global demand for palm oil and to boost foreign currency earnings through exports.

The initiative was developed by the Oil Palm Growers Association of Nigeria (OPGAN) as part of the Nigeria Oil Palm Development Strategy 2024–2029.

The plan also aims to raise Nigeria’s ranking in global palm oil production from fifth to third place.

It seeks to revive and strengthen Nigeria’s palm oil industry to drive job creation and economic growth.

Joe Onyiuke, president of OPGAN, told BusinessDay in Abuja that this is the first time a commodity organization has developed a comprehensive strategic plan that addresses the unique needs of this subsector.

He said: “The oil palm sector has long been one of the pillars of Nigeria’s economic prosperity and agricultural development. However, despite its important contributions, it has lacked a strategic framework to ensure its sustainable development.”

Onyiuke said the association aims to close the palm oil production gap and move the industry into a new phase of growth and resilience.

He added that the strategy highlights challenges that have hindered progress, such as weak land-use efficiency and market volatility, while providing practical recommendations to overcome them.

Domestic Production Gap

In the 1960s, Nigeria was one of the leading exporters of crude palm oil. Today, according to the World Bank, it is Africa’s largest consumer of palm oil.

In 2018, consumption reached around 3 million metric tonnes of oils and fats, while domestic production was only 1.02 million metric tonnes, leaving a gap of 1.92 million tonnes.

A USDA report estimated Nigeria’s palm oil production at 1.4 million metric tonnes in 2022, up 9% from 2020–2021.

Major Investments in the Sector

Nigeria’s oil palm sector has seen growing investment:

• PZ Wilmar had invested more than $150 million in Cross River State by 2018 and owns around 26,500 hectares of oil palm plantations.
• In April 2025, BUA Group signed an agreement with Alfa Laval to build a palm oil refining and fractionation plant with a capacity of 1,000 tonnes per day in the UAE.
• The United Nations Industrial Development Organization (UNIDO) and the National Palm Produce Association of Nigeria (NPPAN) announced the attraction of €300 million in investment for the sector.
• Ellah Lakes plans to begin production in the first half of 2025, with plans to produce palm kernel oil.
• Okitipupa Oil Palm Plc, under the management of Pink Nominee Ltd, acquired four modern mills to strengthen production in Ondo State.

Alphonsus Inyang, president of NPPAN, said these investments will strengthen local production and create more than 300 jobs across value chains.

Record Corporate Profits

Despite economic challenges, Okomu Oil and Presco Plc recorded their highest after-tax profits in a decade in 2024.

Presco recorded growth of 4,088.7% compared with 2015, while Okomu Oil achieved growth of 1,188.3% over the same period.