The National Palm Produce Association of Nigeria says the country will achieve self-sufficiency and meet its global market share of oil palm by 2050, driven by effective implementation of the National Oil Palm Development Strategy. Mr Alphonsus Inyang, National President of NPPAN, made the announcement during an interview with the News Agency of Nigeria on the sidelines of the National Oil Palm Development Strategy validation meeting in Abuja.
Inyang stated that with the new guideline, the country’s current production capacity of 1.4 to 1.5 metric tonnes annually would increase to between nine and ten metric tonnes between now and 2050. Inyang, who also serves as Vice Chairman of the Technical Working Group for the development of the strategy, emphasised that the feat would be achieved by empowering smallholder farmers to enhance production. The target represents a significant scaling of output, requiring substantial investment in planting materials, land development, processing infrastructure, and farmer training.
From an economic perspective, the oil palm sector holds substantial potential for Nigeria’s agricultural diversification and foreign exchange earnings. Nigeria is currently the number one palm oil producing country in Africa, as well as the continent’s largest importer, exporter, and consumer of the commodity. However, the country ranks fifth globally, trailing Indonesia, Malaysia, Thailand, and Colombia. Closing the gap with leading producers would require not only volume increases but also improvements in quality, processing efficiency, and market access.
Inyang further explained that the country intended to extend oil palm production to Taraba, Niger and Kogi States under the framework, leveraging northern states as part of the strategy to achieve the 2050 targets. “Taraba with 69,000 square kilometers land is well placed to cultivate oil palm trees than the whole southern part of the country. Taraba State has a longer sunshine than southern Nigeria; it also has water in some parts. So those are the things we are going to leverage. Niger State too has areas that can produce oil palm, Kogi also,” he said.
The expansion into northern states represents a significant shift from the traditional oil palm belt, which has been concentrated in the South South and South East regions. If successful, this geographic diversification could reduce pressure on land in traditional producing areas, spread economic benefits across more states, and potentially take advantage of different climatic conditions that may favour certain varieties or production systems. However, oil palm cultivation requires substantial rainfall or irrigation, and the suitability of northern locations will need careful assessment.
Inyang explained that the strategy was designed to reposition the country as a major player in the industry at the global level. The framework would encapsulate the establishment of a National Oil Palm Council, an Oil Palm Development Fund, and a National Smallholders Development Fund. According to him, the Nigerian Institute for Oil Palm Research will be transitioned into a Nigerian Oil Palm Board to oversee research, development and innovation in the sector. This institutional restructuring reflects a recognition that the sector has been hampered by fragmented governance and the absence of a central regulatory authority.
Inyang frowned at the country’s rating as the fifth largest oil palm producer globally, given Nigeria’s status as Africa’s largest producer and consumer. He attributed poor investment and growth in the sector over the years to the absence of a clear governance architecture and structure, noting that the gap led to a fragmented system without a central regulatory authority to guide investors. “Governance architecture and governance structure are key to drive the sector. The strategy will have a structured governance architecture similar to what is obtainable in Malaysia and Indonesia, the leading oil palm-producing countries,” he said.
The proposed governance structure includes the Oil Palm Development Fund, which would manage 25 per cent of tariffs collected for palm oil among other generated funds. This financing mechanism is critical because the oil palm sector requires long-term investment in planting materials, which take several years to mature, and processing infrastructure, which requires substantial capital. A dedicated fund can provide patient capital for smallholders and cooperatives that might not qualify for conventional bank financing.
“With the development of the framework, government has created an enabling environment to support growth in the sector. Therefore private sector players and investors should take advantage of the new policy framework,” Inyang said. This invitation to private investors reflects the reality that government resources alone cannot achieve the scale of transformation envisioned. Large-scale estates, processing companies, and input suppliers will need to participate alongside smallholders to reach the nine to ten metric tonne production target.
Dr Fatai Afolabi, Managing Consultant of Foremost Development Services, described the mission as building sustainable palm oil production for the country and ensuring self-sufficiency, competitiveness, and inclusive production. “Its mission is leveraging a hybrid development model integrating large scale estates and smallholders through sustainable practices, research and efficient supply chains,” he said. The hybrid model recognizes that both large-scale operations and smallholder farmers have complementary strengths. Large estates can invest in technology, infrastructure, and quality control, while smallholders provide labour, local knowledge, and community integration.
The 2050 timeline, while distant, reflects the long lead times associated with oil palm development. Palm trees take several years to reach peak production, and scaling up planting material production, land preparation, and processing capacity cannot happen overnight. However, the strategy’s success will depend on sustained political will, consistent funding, and effective coordination among multiple stakeholders. If achieved, Nigeria could reduce its imports of palm oil and derivatives, save foreign exchange, and potentially become a net exporter to neighbouring countries and global markets.
