Nigeria’s crude palm oil import bill increases nearly sixfold

Nigeria’s spending on crude palm oil imports surged by 486.9% year on year in the first half of 2026, reaching 91.62 bln naira compared with 15.61 bln naira a year earlier. According to the country’s National Bureau of Statistics, the sharp increase in import costs reflects growing dependence on foreign suppliers amid insufficient domestic production and strong demand from the processing industry.

The most significant increase in import expenditure occurred in the second quarter, when the value of purchases reached 68.46 bln naira, compared with 7.74 bln naira a year earlier. In the first quarter, import spending totaled 23.16 bln naira, up from 7.87 bln naira in the corresponding period of 2025. Thus, most of the increase in palm oil import costs occurred in April–June, highlighting growing pressure on the domestic market.

According to industry estimates, Nigeria faces a palm oil supply deficit of around 1.5 mln tons. Domestic producers are unable to fully meet demand from the food and industrial processing sectors, forcing the country to increase imports. One of the main challenges is the ageing of oil palm plantations, which require rehabilitation to improve yields. Industry experts emphasize the need for investment in plantation renewal, expansion of production capacity and support for local producers.

Growing import dependence creates additional opportunities for international suppliers, particularly Malaysia. According to the Malaysian Palm Oil Council, Malaysia exported approximately 300 thsd tons of palm oil and its processed products to Nigeria in 2025. Malaysian companies consider Nigeria a promising market for further export expansion amid steady demand and a shortage of locally produced palm oil.

Meanwhile, Nigerian producers warn that further growth in imports could discourage investment in the domestic palm oil industry by intensifying competition for local companies. To reduce the supply deficit, the country needs to modernize existing plantations, improve productivity and develop new production projects. However, the nearly sixfold increase in the import bill does not indicate a corresponding rise in physical shipment volumes, as the statistics reflect the monetary value of crude palm oil purchases rather than import tonnage.

Tags: Crude palm oil, Nigeria