Nigeria’s palm oil industry recorded measurable progress in 2025 with national output rising to 1.57 million metric tons (MMT), representing a 12 percent increase from approximately 1.4 MMT in 2024.
The improvement extends a recovery trajectory from 1.28 MMT in 2020, reflecting gradual expansion across segments of the value chain and renewed policy attention on agricultural productivity.
The updated figures were highlighted during a strategic engagement between Nigerian stakeholders and the Council of Palm Oil Producing Countries, which reiterated its interest in strengthening cooperation with Nigeria across production development, smallholder integration and supply chain alignment.
The engagement underscores growing recognition that oil palm remains central to food security, agro-industrial growth and rural income generation.
Despite the rise in output, domestic demand continues to outpace supply. National consumption has climbed to about 2.61 MMT, leaving a substantial shortfall that is met through imports.
This widening deficit highlights the structural imbalance within the sector and underscores Nigeria’s continued dependence on external supply despite its large agricultural base.
Nigeria possesses more than three million hectares of land suitable for oil palm cultivation, particularly in southern producing regions.
However, productivity remains constrained by the prevalence of aging trees and limited adoption of high-yield hybrid varieties.
Much of the industry remains smallholder-driven with farmers operating under limited access to improved seedlings, mechanisation and extension services.
Compared with leading producers such as Malaysia and Colombia, Nigeria’s yield per hectare remains significantly lower, limiting competitiveness in both domestic and export markets.
Industry representatives have emphasized that upgrading planting materials and strengthening technical support could lift productivity without necessarily expanding cultivated land.
The current production gain signals positive momentum, but the broader challenge lies in closing the demand gap and improving efficiency across the value chain.
Without structural improvements in yield, processing capacity and farmer support systems, headline output growth may not translate into sustained sectoral transformation.
Nigeria’s palm oil revival is progressing numerically. The decisive test will be whether policy coordination and investment follow the production uptick, enabling the country to reduce import reliance and reposition itself competitively within the global market.
