The Federal Government has revealed that Nigeria produces approximately 1.4 million metric tonnes of palm oil annually, while domestic demand exceeds 2.5 million metric tonnes – leaving a shortfall of more than one million tonnes.
The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this on Thursday during the National Stakeholders Meeting on the Joint Development of Nigeria’s Palm Oil Production Capacity, held in Abuja.
Mr Kyari, represented by his senior technical assistant, Ibrahim Alkali, described the gathering as a strategic platform requiring clarity of purpose, alignment of interests, and decisive action to reposition the nation’s palm oil sector.
He recalled that Nigeria was a global leader in palm oil production in the 1960s, accounting for over 40 per cent of global supply. At the time, palm oil served as a major export commodity and a key driver of rural livelihoods and industrial development.
However, the minister noted that the country’s production capacity has since declined.
“Today, Nigeria produces approximately 1.4 million metric tonnes of palm oil annually, while domestic demand exceeds 2.5 million metric tonnes,” he said.
Mr Kyari disclosed that the annual shortfall has forced Nigeria to spend between $500 million and $600 million on imports.
“What this means is that we are exporting opportunities and importing what we have the capacity to produce,” he added.
He noted that Nigeria has over three million hectares of land suitable for oil palm cultivation, much of which remains underutilised.
Mr Kyari also observed that global demand for palm oil continues to rise, with the market valued at over $70 billion annually across food processing, cosmetics, pharmaceuticals, and biofuels. He stressed that Nigeria’s challenge is not a lack of potential, but rather the scale and coordination of its response.
The minister said the Federal Government, under President Bola Tinubu, is prioritising agriculture as part of its economic diversification agenda under the Renewed Hope Initiative. He added that the ministry has taken steps to reposition the oil palm sector through the validation of the National Oil Palm Development Strategy.
He called on stakeholders to work together to unlock the sector’s full potential.
Earlier, the Permanent Secretary of the Ministry of Agriculture and Food Security, Marcus Ogunbiyi, represented by Abba Waziri, Director of Farm Input Support Services, described the meeting as timely and necessary for transforming the palm oil industry. He said the presence of stakeholders reflected a shared commitment to repositioning the sector for sustainable growth, national prosperity, and global competitiveness.
In a presentation, the Managing Director of Mass Industrial Development and Logistics, Emmanuel Anyaralu, outlined strategies for strengthening the palm oil sector through strategic partnerships. He said the development strategy was designed to stimulate rural economies, create jobs, and enhance food security.