… Imports from Liberia alone hit N51bn as domestic production struggles to meet demand
Mujeeb Akindoyin
Nigeria spent about N68bn importing crude palm oil from Liberia, Côte d’Ivoire and Ghana between April and June 2026, despite the country’s status as Africa’s largest producer of the commodity.
The latest trade figures, obtained from the National Bureau of Statistics, showed that Nigeria’s palm oil import bill nearly tripled in the second quarter of the year, compared with the N23bn recorded in the first quarter.
The development has renewed concerns over Nigeria’s inability to translate its position as Africa’s leading palm oil producer into sufficient domestic supply for its rapidly expanding consumer and industrial market.
According to the data, Nigeria imported crude palm oil worth approximately N51bn from Liberia during the three-month period.
A further N15bn worth of the commodity came from Côte d’Ivoire, while imports from Ghana were valued at about N2bn.
The combined N68bn import bill between April and June brings the value of crude palm oil imported from the three West African countries to about N91bn in the first half of 2026, based on the N23bn recorded in the first quarter.
The development is particularly striking because Nigeria is recognised as the largest palm oil producer in Africa and among the world’s leading producers.
The United States Department of Agriculture ranks Nigeria as the fifth-largest palm oil producer globally, behind Indonesia, Malaysia, Thailand and Colombia.
Industry data indicate that Nigeria produces roughly 1.5 million metric tonnes of palm oil annually, representing about two per cent of global output.
Despite this production capacity, the country continues to depend heavily on imports to bridge the gap between domestic supply and demand.
Palm oil is a critical raw material for Nigeria’s economy, with extensive applications in food processing, soap and detergent manufacturing, cosmetics, pharmaceuticals and other industrial activities.
It is also an essential household commodity, making disruptions in local production capable of affecting both manufacturers and consumers.
The latest import figures suggest that Nigeria’s challenge is not simply the volume of palm oil produced but the country’s ability to achieve sufficient productivity, processing capacity and an efficient supply chain capable of meeting domestic demand.
Nigeria’s oil palm sector is dominated by smallholder farmers, many of whom operate with limited access to improved seedlings, mechanisation, credit, extension services and modern processing facilities.
The country also faces concerns over the condition and productivity of some major oil palm plantations, with stakeholders repeatedly calling for greater investment in the sector.
The dependence on imports has persisted despite government interventions designed to close the domestic supply gap.
The Central Bank of Nigeria introduced the Oil Palm Development Initiative in 2019, partly in response to an estimated annual palm oil supply deficit of about 1.25 million metric tonnes.
The initiative was intended to stimulate oil palm cultivation, improve productivity, develop the value chain, generate employment and reduce Nigeria’s dependence on imported palm oil.
However, the latest NBS figures indicate that the supply challenge remains significant.
The surge in imports also raises questions about Nigeria’s efforts to conserve foreign exchange and strengthen domestic agricultural production.
While imports may provide immediate relief to manufacturers and consumers when domestic supply is inadequate, sustained dependence on foreign palm oil means that significant amounts of money continue to flow out of the domestic agricultural economy.
The situation is particularly significant at a time when the Federal Government has repeatedly emphasised agricultural production, economic diversification and greater domestic manufacturing as strategies for reducing Nigeria’s dependence on imports.
Stakeholders in the oil palm sector have consequently continued to call for policies that would increase productivity among smallholder farmers while rehabilitating plantations and improving processing and storage infrastructure.
They have also advocated better access to affordable financing, improved seedlings, technical support and stronger links between farmers and processors.
With Nigeria’s population and industrial demand continuing to expand, experts and industry stakeholders say increasing production alone may not be enough.
They argue that greater attention must be paid to productivity per hectare, processing efficiency, value addition and the development of an integrated oil palm value chain.
The latest trade figures therefore present a paradox: Nigeria remains Africa’s leading palm oil producer, yet it spent N68bn importing the same commodity from three neighbouring West African countries in just three months.
The figures may serve as another warning that Nigeria’s ambition to become self-sufficient in agricultural commodities will remain difficult to achieve unless investment in production is matched by reforms across the entire agricultural value chain.
PLATFORM TIMES gathered that closing the supply gap would require sustained investment in both large-scale plantations and the millions of smallholder farmers whose output remains central to Nigeria’s palm oil industry.
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