Nigeria has unveiled an ambitious plan to reposition the oil palm industry as a major economic driver, targeting a 10 percent share of the global market and lifting about two million citizens out of poverty within six years.
Aliyu Sabi Abdullahi, minister of state, Federal Ministry of Agriculture and Food Security, stated this in his keynote address at the Nigerian Oil Palm Development Strategy Validation Meeting, tagged “Unlocking Nigeria’s Oil Palm Potential: Pathways to Sustainability and Growth”, which was held in Abuja on Thursday, April 2, 2026.
Abdullahi said the initiative marks a decisive shift from policy inertia to structured, investment-led growth across the value chain.
He framed the strategy as both an agricultural and industrial policy tool. Oil palm, he noted, sits at the intersection of food systems and manufacturing, supplying critical inputs for edible oils, cosmetics, pharmaceuticals, and animal feed. That positioning, he said, makes the sector central to Nigeria’s broader economic diversification agenda.
Abdullahi acknowledged Nigeria’s decline from a global leader in palm oil production to a marginal player, attributing the slide to low productivity, weak processing capacity, poor financing access, and fragmented value chain coordination. He stressed that reversing this trend will require disciplined execution rather than policy declarations.
The strategy sets out a six-year roadmap anchored on yield improvement, expansion of cultivated areas, and modernisation of processing infrastructure.
It also prioritises smallholder farmers, who account for the bulk of domestic production, with interventions spanning improved seedlings, extension services, access to finance, aggregation systems, and market linkages.
“We cannot transform this sector through isolated interventions,” Abdullahi said, underscoring the need for a coordinated national framework that integrates public policy with private capital.
At the core of the plan is a shift from low-value primary production to higher-value processing and industrial utilisation. The government is pushing for investment in modern mills and technology to improve extraction rates, reduce post-harvest losses, and meet international quality standards.
Financing remains a critical pillar. Abdullahi signalled that the government alone will not shoulder the capital burden, calling for stronger participation from private investors, financial institutions, and development partners.
The policy, he said, is designed to de-risk investment and create an enabling environment for agribusiness expansion.
On the global front, Nigeria is deepening engagement with the Council of Palm Oil Producing Countries as an observer, with plans to transition to full membership.
The move is expected to strengthen technical collaboration, improve market access, and align Nigeria with global sustainability standards increasingly shaping palm oil trade.
Earlier, Marcus Ogunbiyi, permanent secretary, Ministry of Agriculture and Food Security, said the strategy emerged from a multi-stakeholder technical working group inaugurated in 2024.
He described the document as a product of extensive consultations across government agencies, research institutions, commodity associations, and private sector operators.
Industry stakeholders welcomed the policy direction but warned that implementation gaps could undermine outcomes.
Joe Onyuike, chairman of the Oil Palm Growers Association of Nigeria, said Nigeria’s decline from about 40 percent global dominance to roughly two percent reflects structural failures, particularly weak coordination and inconsistent policy execution.
He emphasised that smallholders, who represent about 80 percent of the sector, must be central to implementation, warning that excluding primary producers from decision-making would stall progress.
Similarly, Alphonsus Inyang, national president, National Palm Produce Association of Nigeria, said the strategy marks a turning point for smallholder inclusion, noting that sustained engagement across all tiers of the value chain will be critical to delivery.
From the research side, Gold Leonard Isona, executive director, Nigerian Institute for Oil Palm Research, NIFOR, highlighted the role of innovation and science in driving productivity gains.
He said achieving self-sufficiency in edible oils and re-entering export markets will depend on strengthened research collaboration and technology adoption.
International partners also signalled support. Babang Suharto, speaking on behalf of the Council of Palm Oil Producing Countries, CPOPC, described Nigeria as a strategic player with strong potential to scale sustainable production and compete globally.
Despite the optimism, analysts note that Nigeria currently spends an estimated $600 million annually on palm oil imports, underscoring the urgency of closing the domestic supply gap.
The success of the strategy will hinge on execution discipline, with clear timelines, measurable performance indicators, and accountability mechanisms expected to determine whether Nigeria can reclaim its position in the global palm oil market.