FG to boost palm oil production, cut $600m imports, save $500m yearly

The Federal Government has unveiled plans to significantly boost palm oil production as part of efforts to reduce import dependence and save up to $500 million annually.

This was disclosed by the Federal Ministry of Agriculture and Food Security during a stakeholders’ engagement held in Abuja, where government officials called for stronger collaboration with state governments, private investors, and industry players to reposition the sector.

Production gap driving import bill

Speaking at the meeting, the Minister of Agriculture and Food Security, Abubakar Kyari, said Nigeria’s current palm oil output remains insufficient to meet domestic demand.

Represented by his Senior Technical Assistant, Ibrahim Alkali, the minister noted that the country produces about 1.4 million metric tonnes of palm oil annually, compared to an estimated demand of over 2.5 million metric tonnes.

This shortfall has resulted in an import bill of up to $600 million each year, placing additional pressure on Nigeria’s foreign exchange reserves.

Kyari stressed that addressing this gap is critical not only for reducing imports but also for strengthening food security and stimulating rural economic development.

PPP model to drive implementation

According to the minister, the proposed intervention will be executed under a Public-Private Partnership (PPP) framework, with the government providing policy backing and an enabling environment for investors.

He explained that the initiative aligns with the administration’s broader economic reform agenda and is designed to attract large-scale investment into oil palm cultivation and processing.

The programme will be implemented in phases, beginning with the development of seven integrated oil palm estates across selected states. These estates are expected to serve as production hubs before expanding into value addition, processing, and export-oriented activities.

Policy alignment and national strategy

Also speaking, the Permanent Secretary of the ministry, Marcus Ogunbiyi, revealed that the initiative follows the approval of a national development proposal as well as the validation of the National Oil Palm Development Strategy.

He noted that the strategy provides a structured roadmap for increasing productivity, improving supply chains, and enhancing competitiveness in the global market.

Stakeholders express optimism

Stakeholders at the meeting expressed confidence that the renewed focus on palm oil development could unlock significant economic opportunities.

They highlighted the potential for job creation, increased income for smallholder farmers, and improved value chain participation, particularly in rural communities.

Industry players also noted that if properly implemented, the initiative could help Nigeria regain its former position as a leading global producer of palm oil, while reducing reliance on imports and conserving foreign exchange.

Read also: NASENI Renewable Energy Industrial Park to Create Over 53,000 Jobs