The Oil Palm Growers Association of Nigeria (OPGAN) has launched a comprehensive strategic plan aimed at bridging Nigeria’s 1.9 million metric tonnes palm oil supply gap and repositioning the country as a global leader in palm oil production.
Unveiled under the Oil Palm Development Strategy for Nigeria 2024–2029, the plan outlines a target to replant 1.5 million hectares of oil palm plantations across 27 producing states within five years.
The initiative seeks to boost local production, stimulate export earnings and reduce dependence on imported palm oil.
Speaking during a media briefing in Abuja, OPGAN President Joe Onyiuke described the strategy as a significant milestone for Nigeria’s agricultural sector.
He said it is the first time a commodity-based organisation is formulating a strategic roadmap tailored to the unique needs of the oil palm subsector.
According to Onyiuke, the strategic plan addresses critical industry challenges, including inefficient land use, outdated processing methods, low investment and weak market linkages.
He said the strategy sets actionable steps for sustainable production, improved yields and value chain integration.
Nigeria currently consumes over three million metric tonnes of fats and oils annually but produces only 1.1 million metric tonnes of palm oil, leaving a deficit of about 1.9 million metric tonnes.
The United States Department of Agriculture reported that Nigeria’s palm oil production reached 1.4 million metric tonnes in 2022, representing a nine percent increase from 2021. However, demand continues to outpace supply.
OPGAN’s new plan aims to position Nigeria as the third-largest palm oil producer globally, up from its current fifth-place ranking. The plan also targets job creation, rural development and increased foreign exchange earnings through palm oil exports.
The Federal Ministry of Agriculture and Food Security has endorsed the initiative. Abdullahi Abubakar, Director of the Federal Department of Agriculture, said the government is pleased with the private sector-led approach and the collaborative effort among stakeholders.
Investment in Nigeria’s palm oil sector has been gaining momentum. PZ Wilmar, a subsidiary of PZ Cussons, has invested over $150 million in oil palm plantations in Cross River State.
The company currently manages over 26000 hectares across multiple estates. Other major investors include BUA Group, which recently signed a deal with Alfa Laval to build a 1000 metric tonnes per day palm oil refinery and fractionation plant.
In addition, the United Nations Industrial Development Organisation and the National Palm Produce Association of Nigeria have attracted €300 million into the sector, aimed at modernising processing facilities and creating over 300 jobs.
Okomu Oil and Presco Plc, two listed agro-industrial companies, delivered record after-tax profits in 2024 despite macroeconomic challenges.
Presco reported a 4088.7 percent profit growth while Okomu Oil achieved a 1188.3 percent rise from 2015 levels.
New entrants such as Ellah Lakes and Oxygen X are also expanding their presence in the value chain.
Ellah Lakes plans to commence palm kernel oil production in the first half of 2025 while Okitipupa Oil Palm Plc has acquired four new mills to enhance its processing capacity across eight plantations in Ondo State.
