Nigeria Spends $600m on Palm Oil Imports Annually

Palm Oil Imports Drain Nigeria's Coffers

Nigeria spends $600 million annually on palm oil imports, despite having once been the world's leading producer and exporter. The National Palm Produce Association of Nigeria calls on the government to support domestic production to reduce reliance on imports and create new economic opportunities.

According to the National Palm Produce Association of Nigeria (NPPAN), Nigeria imports palm oil for $600 million a year.

The association's national president, Mr. Alphonsus Inyang, made this claim in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

Inyang criticized these expenditures as counterproductive to the country's development, arguing that the money would be better spent if the palm oil subsector was given the proper attention by succeeding administrations.

He emphasized how historically self-sufficient Nigeria was in producing palm oil and contrasted that with the current state of affairs, when a sizable amount of the nation's palm oil is imported.

“In the 60s, Nigeria was the leading global producer and exporter of palm oil, controlling over 60 per cent of the world's supply,” Inyang said.

“Now, more than 50 per cent of our consumption is met through imports.”

Nigeria is currently the fifth-ranked nation that produces palm oil, after Indonesia, Malaysia, Thailand, and Colombia.

Inyang forewarned that Nigeria would lose its standing to less powerful nations making significant investments in the industry.

Nigeria produces 1.4 million metric tons of palm oil a year, or 1.5% of the global output, according to the U.S. Department of Agriculture.

The largest producers are Thailand with 3.28 million metric tons, Indonesia with 50 million metric tons, Malaysia with 19 million metric tons, and Colombia with 1.9 million metric tons. This production level is far lower than theirs.

Inyang ascribed Nigeria's problems on previous administrations' disregard for the industry.

He made note of the fact that although Nigeria is currently the continent's biggest user of palm oil, using almost three million metric tons of it annually, domestic production is still less than 1.4 million metric tons, leaving a deficit of more than 1.6 million metric tons.

Inyang called on the government, particularly the Federal Ministry of Agriculture and Food Security, to provide NPPAN members with necessary resources in order to overcome this deficit.

“Our members can plant up to 250,000 hectares per year through the association's National Oil Palm Strategy Development Plan. All we need are inputs,” he said.

“The government does not need to provide and develop land for us. We need seedlings, fertilisers, logistics, and implements to close this gap within four years.

“This will also create new millionaires in 28 states of the federation.”