Despite being regarded as Africa’s largest producer of crude palm oil and the fifth-largest producer globally, Nigeria imported palm oil worth about N68 billion from three West African countries in the second quarter of 2026, according to data from the National Bureau of Statistics (NBS).
The imports came from Liberia, Côte d’Ivoire and Ghana between April and June 2026, raising questions about the gap between Nigeria’s domestic palm oil production and its growing demand.
The United States Department of Agriculture (USDA) ranks Nigeria as the fifth-largest palm oil producer in the world and the leading producer on the African continent.
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According to agricultural data and industry groups like the Council of Palm Oil Producing Countries and the National Palm Produce Association of Nigeria, Nigeria produces roughly 1.5 million metric tons of palm oil annually, about 2% of the world’s total output, placing it fifth behind major global powerhouses like Indonesia, Malaysia, Thailand, and Colombia.
However, NBS trade data reviewed showed that Nigerian businesses imported crude palm oil worth N23 billion from West African countries in the first quarter of 2026.
The figure rose sharply in the second quarter, with imports from the three countries valued at about N68 billion.
In the second quarter, covering April to June 2026, Nigeria imported crude palm oil worth N51 billion from Liberia.
A further N15 billion worth of the commodity was imported from Côte d’Ivoire, while another N2 billion was spent on crude palm oil imported from Ghana.
The second-quarter import bill represents a significant increase from the N23 billion recorded between January and March 2026.
The continued dependence on imports is notable given Nigeria’s long-standing position as a major producer of palm oil and the government’s efforts to boost domestic production.
Palm oil remains an important commodity in Nigeria, with applications ranging from food production to cosmetics, pharmaceuticals and industrial manufacturing.
It is also a major raw material for producing soap, detergents and other consumer goods, while households and food processors rely heavily on it.
The rising import figures therefore highlight the challenge of meeting domestic demand through local production.
Although Nigeria produces large quantities of palm oil, increasing consumption, limited productivity and challenges within the agricultural value chain have contributed to a supply gap, creating room for imports from other countries.
The development also comes despite efforts by the Central Bank of Nigeria (CBN) to increase palm oil production through its Oil Palm Development Initiative.
The initiative, introduced in 2019, was aimed at addressing an estimated annual palm oil supply gap of 1.25 million metric tonnes.
It was also designed to develop the oil palm value chain, improve productivity, create jobs and support economic diversification.
The scale of imports recorded in 2026, however, suggests that significant challenges remain in expanding domestic production and ensuring that local supply keeps pace with demand.
There have also been concerns over the condition and management of some major palm oil plantations across the country, with critics blaming successive administrations for failing to adequately invest in and maintain key plantations.
There has also been strong advocacy for government support of small-scale farmers, who make up the majority of Nigeria’s farming population.
Culled from Sahara Reporters
