Agriculture

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.

Diana Orembe CO-FOUNDER AND CEO, NOVFEED (Image credit: How we made it in Africa)

Tanzanian entrepreneur Diana Orembe is on track to push her company NovFeed past the US$1mn mark in sales this year

The business, which produces fish feed and organic fertiliser, has grown steadily since its launch in 2020. Her recent win at the Africa’s Business Heroes competition brought both recognition and funding, helping her scale production and sharpen her long term vision.

Orembe’s journey began near Lake Victoria, where she observed the struggles of small fish farmers, including her uncle, who often complained about the high cost and limited availability of fish feed. While studying microbiology at the University of Dar es Salaam, she explored the aquaculture sector more deeply and realised these challenges were widespread. Tanzania relied heavily on imported feed, making it expensive for local farmers.

Using university lab resources, she developed an affordable alternative by converting food waste into fish feed through fermentation. This process also created a liquid byproduct that could be sold as fertiliser. What started as a small operation producing 30 tonnes per month has now evolved into a much larger enterprise.

Reflecting on entrepreneurship, Orembe says, “If you talk to a woman selling vegetables on the markets, she will tell you how hard it is to run her business. If you talk to a person running a conglomerate, he will just say the same [about] how difficult it is to run that very huge, big business. If you talk to a medium-scale business person who is even running just a store, they will tell you the same [about] how it’s difficult. So what I was just reminding myself this morning is that all businesses are difficult.”

Selling the product proved to be the biggest hurdle. Rather than focusing on technical details, her team highlighted affordability and results. “I have learned along the journey that the message you’re giving your customers really matters. When you tell a person that this is bacteria-made fish feed, everyone will run away.”

By 2024, repeat customers confirmed the product’s value. “It doesn’t matter how good your product is, if you can’t retain the customers, it will always be one of the signals that your product is not working,” she explains. “So for us, the moment we started seeing the customer is buying and is coming back, that was a good sign.”

With new funding, NovFeed now produces over 20 tonnes daily. Yet growth brings new pressure. “I’ve never been able to produce 20 tonnes of feed per day ... Now where am I going to look for a customer who can access that per day?” she says. “Being able to produce [is] just one thing. But at the end of the day, you have to sell. That’s the most, most difficult part.”

Cape Town Expo Showcased Strong Voices in Organic and Natural Products Sector (Image credit: Organic & Natural Products)

The Organic and Natural Products Expo Africa brought fresh energy to Cape Town, delivering one of its most engaging conference programmes to date

Held at the Cape Town International Convention Centre from 17 to 19 April 2026, the event gathered industry leaders, entrepreneurs, and policymakers for three days focused on trade, insight, and collaboration.

With Standard Bank as the headline sponsor, the event reflected growing confidence in the sector. Deenash Pillay, Head of Small Business Segments for Business and Commercial Banking at Standard Bank, said, “We are delighted to be a partner again this year, on a greater scale, as we believe in this sector’s potential to drive sustainable economic development that benefits communities across our continent. Our vision is to see Africa become a global leader in the organic and natural products space, not just as a supplier of raw materials, but as a hub for innovation, processing, and brand development,” says Deenash Pillay.

The programme opened on Friday with practical sessions aimed at small businesses. Experts from Standard Bank led discussions on financial health, followed by insights into the use of artificial intelligence to improve efficiency. Conversations around conscious consumer behaviour and retail trends also drew strong interest, offering businesses a clearer understanding of changing market demands.

Saturday shifted attention towards innovation and export potential. Industry specialists explored the future of the mushroom sector, emerging technologies, and the role of wellness products in modern lifestyles. A panel of trade and development experts shared guidance on expanding into international markets, giving attendees realistic strategies for growth. There was also a focus on regional development, highlighting opportunities within agri processing and sustainable supply chains.

The final day centred on wellbeing and sustainability. Speakers shared personal and professional perspectives on health, skincare, and environmentally responsible building materials. Interactive experiences added a more human touch, allowing visitors to engage with products in a meaningful way.

Reflecting on the event, Warren Hickinbotham, co-founder of the expo, said, "Conversations on the show floor are shaping the future of how Africa grows, processes, and sells natural products. We have built a programme that meets our audience where they are and takes them further." He added, "From government trade bodies to AI innovators to wellness practitioners, the range of expertise on our stage this year is extraordinary. This is what happens when an industry matures and starts asking deeper questions."

The expo reached full capacity, with exhibitor space completely sold out, underlining the sector’s rapid growth and rising demand.

Ethiopia strengthens its place as Africa’s agricultural powerhouse (Image credit: ENA)

Ethiopia is steadily reinforcing its reputation as a major force in African agriculture, now recognised as the continent’s top wheat producer and the largest producer and exporter of coffee

This milestone was highlighted by Agriculture State Minister Professor Eyasu Elias during the Alliance for a Green Revolution in Africa (AGRA) meeting in Addis Ababa, marking the organisation’s 20th anniversary.

Professor Eyasu pointed to a clear and determined national strategy that has driven this transformation. Since Prime Minister Abiy Ahmed took office, Ethiopia has prioritised agriculture through strong leadership, coordinated policies, and sustained investment in farmers. These efforts have helped the country shift towards more climate resilient irrigation systems, particularly in wheat production, while maintaining its global reputation for high quality coffee.

He emphasised that these achievements closely reflect AGRA’s mission to improve seed systems, boost productivity, expand market access, and build resilient agricultural frameworks. The organisation has also played a key role in strengthening Ethiopia’s value chains across crops such as wheat, oilseeds, rice, and sorghum, alongside improving institutional and policy capacity.

AGRA Board Chairman Hailemariam Dessalegn, said, "This remains as relevant today as it was then as agriculture serves as the backbone of most African economies, and the continent's prosperity depends on the success of its farmers," the Board Chairman stressed. He further noted that Ethiopia stands out as a model, with agriculture contributing more than 30 percent of its GDP, supporting most of the population, and driving export growth.

AGRA President Alice Ruhweza, said, "We must continue to strengthen the systems that enable agriculture to deliver from policy, institutions, research, innovation, to markets that all function effectively. It also means ensuring that partners are not only working together, but aligned around clear priorities and tangible results."