Nigeria faces growing palm oil gap amid rising domestic demand

Nigeria is grappling with a widening gap between palm oil production and local consumption, as demand continues to outpace supply

The Federal Government recently revealed that the country produces about 1.4 million metric tonnes of palm oil each year, while domestic demand has risen beyond 2.5 million metric tonnes.

This concern was highlighted by the Minister of Agriculture and Food Security, Abubakar Kyari, during a stakeholders meeting in Abuja focused on strengthening Nigeria’s palm oil production capacity. Represented by his senior technical assistant, Ibrahim Alkali, the minister described the gathering as an important moment for clear direction and collective action to revive the sector.

Reflecting on the past, Mr Kyari noted that Nigeria once dominated the global palm oil market in the 1960s, contributing over 40 per cent of worldwide supply. At that time, palm oil played a central role in exports, rural livelihoods and industrial growth. However, the country’s output has steadily declined over the years.

“Today, Nigeria produces approximately 1.4 million metric tonnes of palm oil annually, while domestic demand exceeds 2.5 million metric tonnes,” he said.

The resulting shortfall of more than one million metric tonnes each year has forced the country to spend heavily on imports.

“What this means is that we are exporting opportunities and importing what we have the capacity to produce,” he said.

Despite the challenges, Nigeria holds significant potential. The country has over three million hectares of land suitable for oil palm cultivation, much of which remains unused. At the same time, global demand for palm oil continues to expand, with the market valued at more than 70 billion dollars annually across industries such as food, cosmetics, pharmaceuticals and biofuels.

Mr Kyari stressed that the issue is not a lack of resources but the need for stronger coordination and scaled efforts. He added that the government is prioritising agriculture as part of its broader economic diversification plan and is working to reposition the sector through a validated national development strategy.

Stakeholders at the meeting echoed the need for collaboration, with a shared goal of boosting production, supporting rural economies and improving food security.