Posted by Chinenye on Wed 19th Aug, 2026 - tori.ng
Nigeria’s palm oil import bill has nearly tripled in just one year, exposing a widening gap between local production and the country’s growing appetite for the product
(Palm Oil. Photo by Vanguard News)
Nigeria's spending on imported palm oil nearly tripled in the first quarter of 2026 compared to the same period last year.
The country spent about 23 billion naira on palm oil imports in early 2026, up from roughly 8 billion naira a year before.
The sharp increase reflects a growing gap between how much palm oil Nigerians need and how much the country produces locally.
Nigeria consumes about 2.4 million tonnes of palm oil yearly while domestic production sits at around 1.5 million tonnes, leaving a shortfall of roughly 900,000 tonnes that must be filled through imports from countries like Indonesia, Ghana and Ivory Coast.
The problem is particularly challenging because most local palm oil production comes from small farmers who use traditional, manual processing methods.
Only about 20 percent of production comes from larger commercial operations.
The influx of cheaper imported palm oil has begun undercutting local producers, creating concerns about the survival of the domestic industry.
Industry leaders say the rising import bill actually reflects Nigeria's rapidly growing population rather than policy failure.
About half of Nigerians now live in cities, driving demand for palm oil used in bread, cosmetics, baby formula, soap and other products.
With Nigeria's population growing at 3.5 percent annually and the population being the youngest in the world, demand for palm oil will continue climbing.
One industry expert noted that Indonesia and Malaysia, which dominate global palm oil production, used small farmers to build their industries.
He said Nigeria could follow the same model by encouraging rural households to plant palm on small plots.
Industry groups are developing plans to build a 20 billion dollar palm oil sector within five years.
Another challenge is that most imported palm oil meets industrial standards requiring low free fatty acid content, while locally produced palm oil preferred by Nigerians for cooking has higher fatty acid levels and cannot meet industrial specifications.
This means even as Nigeria produces more, much of it would still be for cooking use while industries would continue importing refined oil for manufacturing.