Low Productivity and Artisanal Methods Stifle Nigeria's Palm Oil Industry
Nigeria's palm oil industry faces significant challenges due to low productivity and dominance of artisanal processing methods.
Data from the Council of Palm Oil Producing Countries (CPOPC) shows that Nigeria's palm oil production increased from 1.28 million tonnes in 2020 to 1.57 million tons in 2025, while domestic consumption rose from 2.45 million tons to 2.61 million tons.
The resulting supply gap is being met through imports, with the CPOPC estimating that Nigeria's total domestic crude palm oil production at about 1.4 million tonnes compared to domestic demand of 1.865 million tonnes in 2024.
A recent study commissioned by the Roundtable on Sustainable Palm Oil (RSPO) found that smallholders account for between 70 and 80 per cent of oil palm planted areas across West and Central Africa, with artisanal mills producing about 89 per cent of Nigeria's domestic crude palm oil production in 2024.