Domestic oil palm production in Nigeria remained flat at 1.5m MT in 2024, while consumption grew 4.6% y/y to 2.0m MT — widening the supply gap to 450,000 MT. The sector remains constrained by low mechanisation and dominance of smallholder farmers. Structural bottlenecks including limited access to finance, low-yield planting materials, fragmented land ownership, and poor rural infrastructure continue to limit Nigeria’s ability to scale oil palm production to meet domestic demand.
The global pivot toward biofuels is tightening palm oil supply as top producers like Indonesia and Malaysia divert output for domestic energy use, driving up prices. This shift presents a strategic opportunity for Nigeria to Revive the "Red Gold" by transforming its underperforming oil palm sector into a regional hub and closing a 450,000 MT annual supply gap. With over 2.5 million hectares of suitable land and growing investor interest, coordinated action is needed to scale up production, improve processing capacity, and integrate biofuels. A National Palm Oil Strategy focused on finance, import substitution, exports, and sustainability could unlock the sector’s full potential.
In 2024, the domestic oil palm industry revenue, proxied by the revenues of two listed oil palm producers – Okomu Oil Palm Plc (OKOMUOIL) and Presco Oil Palm Plc (PRESCO) – expanded by 90.2% to ₦337.7bn – the highest level on record.
Despite the cost pressures, the industry recorded its fastest PBT and PAT growth since 2021, up 100.1% and 122.2% y/y to print at ₦166.8bn and ₦117.8bn. For 2025, we expect sustained profitability in the industry, albeit at a slower pace. On a base case, we estimate a PBT and PAT of ₦231.5bn and ₦161.0bn, marking a 38.8% and 36.8% y/y growth respectively.
