Nigeria targets 10% global palm oil share, eyes 2m Jobs

By: Amarachi Okonkwo 

Nigeria is moving to reclaim its lost dominance in the global oil palm market, unveiling an ambitious six-year strategy aimed at boosting production, strengthening value chains, and lifting up to two million people out of poverty.

Speaking at the Nigerian Oil Palm Development Strategy Validation Meeting in Abuja on Thursday, April 2, 2026, the Minister of State for Agriculture and Food Security, Aliyu Sabi Abdullahi, said the initiative signals a decisive shift from policy stagnation to a structured, investment-driven growth model.

Tagged “Unlocking Nigeria’s Oil Palm Potential: Pathways to Sustainability and Growth,” the strategy targets a 10 percent share of the global palm oil market, positioning the sector as a critical pillar of Nigeria’s economic diversification agenda.

Abdullahi described oil palm as uniquely placed at the intersection of agriculture and industry, supplying inputs for food production, cosmetics, pharmaceuticals, and animal feed. This dual role, he noted, makes it central to both food security and industrial development.

Nigeria, once a global leader in palm oil production, has seen its market share shrink dramatically over decades. Abdullahi attributed the decline to low yields, weak processing capacity, limited access to finance, and poor coordination across the value chain.

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He stressed that reversing the trend would require disciplined execution rather than policy pronouncements.

The new roadmap focuses on three core pillars: improving yields, expanding cultivated land, and modernising processing infrastructure. A major emphasis is placed on smallholder farmers, who account for the bulk of domestic production. Planned interventions include access to improved seedlings, extension services, financing, aggregation systems, and stronger market linkages.

“We cannot transform this sector through isolated interventions,” Abdullahi said, underscoring the need for a coordinated national framework that aligns public policy with private sector investment.

A key feature of the strategy is a shift from primary production to higher-value processing and industrial utilisation. The government is encouraging investment in modern mills and technology to boost extraction efficiency, reduce post-harvest losses, and meet international quality standards.

Financing is expected to play a pivotal role. Abdullahi noted that government resources alone would be insufficient, calling for increased participation from private investors, financial institutions, and development partners. 

The policy framework is designed to de-risk investments and create a more attractive environment for agribusiness expansion.

On the international front, Nigeria is strengthening ties with the Council of Palm Oil Producing Countries, where it currently holds observer status, with plans to transition to full membership. The move is expected to enhance technical collaboration, expand market access, and align Nigeria with evolving global sustainability standards.

Permanent Secretary of the Ministry, Marcus Ogunbiyi, said the strategy was developed by a multi-stakeholder technical working group inaugurated in 2024, incorporating inputs from government agencies, research institutions, commodity associations, and private sector players.

Industry stakeholders have broadly welcomed the initiative but warned that execution risks remain significant. Joe Onyuike, chairman of the Oil Palm Growers Association of Nigeria, said the country’s fall from about 40 percent global dominance to roughly two percent reflects deep structural challenges, particularly weak coordination and inconsistent policy implementation.

He stressed that smallholders who make up about 80 percent of the sector must remain central to the rollout, warning that excluding them could derail progress.

Similarly, Alphonsus Inyang, president of the National Palm Produce Association of Nigeria, described the strategy as a potential turning point, provided engagement across the value chain is sustained.

From a research perspective, Gold Leonard Isona of the Nigerian Institute for Oil Palm Research highlighted the importance of innovation and technology adoption in achieving productivity gains and restoring competitiveness.

International partners have also expressed support. Representing the CPOPC, Babang Suharto described Nigeria as a high-potential player capable of scaling sustainable production and re-entering global export markets.

Despite the optimism, the urgency of reform is underscored by Nigeria’s current reliance on imports, with the country spending an estimated $600 million annually on palm oil.

Analysts say the success of the strategy will ultimately depend on execution discipline, backed by clear timelines, measurable performance indicators, and strong accountability mechanisms factors that will determine whether Nigeria can regain its footing in the global palm oil industry.