Nigeria's Palm Oil Sector Hit by Cheaper Imports

Nigeria's top palm oil manufacturers are facing declining profits due to cheaper imports and falling domestic prices. Presco Plc and Okomu Oil Palm Plc, two listed companies in Nigeria, struggled to pass on increased costs to customers, leading to a dip in profitability.

In the first six months of 2026, combined revenue for both companies was N323.9 billion, while profit after tax was N121.9 billion. However, this marks a slowdown from their previous performance, as Presco reported a 7.3% decrease in profit after tax to N82.2 billion, and Okomu's profit after tax dropped by 16.4% to N39.7 billion.

The industry is concerned that the recent import tariff reduction has opened up the domestic market to cheaper imports, which are now competing directly with local producers. Fresh fruit bunch prices have fallen by about 43%, from N2.8 million per tonne to N1.6 million per tonne, according to industry data.

Industry leaders warn that if import volumes continue to rise without a clearly defined quota or gap-filling framework, Nigeria could slow its production gains and re-entrench dependence on foreign supply. Presco is expanding its operations despite the challenges, investing $100 million to establish operations in Ogun State.