The Federal Government has unveiled an ambitious plan to revive Nigeria’s palm oil industry, targeting annual import savings of between $500 million and $600 million through expanded local production, private sector investment, and state-level partnerships.
The initiative, driven by the Federal Ministry of Agriculture and Food Security (FMAFS) in collaboration with Mass Industrial Development and Logistics Limited and other stakeholders, is part of a broader push to reposition the palm oil sub-sector as a key driver of industrial growth, job creation, and food sovereignty.
Speaking at the National Stakeholders’ Meeting for Joint Development of Nigeria’s Palm Oil Production Capacity held on Thursday in Abuja, the Minister of Agriculture and Food Security, Sen.
Abubakar Kyari, said the programme is designed as a Public-Private Partnership (PPP) model, with government playing a facilitative role rather than relying on public borrowing.
Kyari, who was represented by his Senior Technical Assistant, Engr. Ibrahim Alkali, said the success of the initiative would depend largely on collaboration across all levels of the value chain.
“It is time to move from intention to implementation, Nigeria must take bold and deliberate steps to reposition agriculture as a driver of economic growth,” he said.
The Minister recalled that Nigeria once dominated global palm oil production, controlling over 40 per cent of global supply in the 1960s, but now produces about 1.4 million metric tonnes annually against a domestic demand exceeding 2.5 million metric tonnes.
“The result is a deficit of more than 1 million metric tonnes every year — one that compels us to spend between 500 and 600 million dollars annually on imports. What this means is simple: we are exporting opportunities and importing what we have the capacity to produce,” Kyari said.
He added that the initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda and the ministry’s National Oil Palm Development Strategy, which focuses on expanding production, improving yields, strengthening processing capacity, and integrating smallholder farmers into structured value chains.
According to him, state governments are central to the success of the programme, particularly in land allocation, enabling policies, infrastructure development, and community engagement.
Kyari also disclosed that under the Mass Industrial proposal, the first phase would see the establishment of seven integrated oil palm estates across participating states.
“Under the Mass Industrial proposal, the phase one will establish seven integrated oil palm estates of 10,000 hectares each across participating states. The estates are conceived as complete economic ecosystems combining primary production with modern milling and refining facilities, storage and distribution infrastructure, as well as residential communities for over 2,000 families per estate, including housing, schools and healthcare facilities,” he said.
He further explained that the second phase would focus on downstream processing and manufacturing to strengthen value addition and position Nigeria competitively in both domestic and international markets.
“The phase two will drive agro-industrial expansion through downstream processing and manufacturing of palm-based products to capture value across the entire chain and position Nigeria competitively in domestic and export markets,” Kyari added.
He noted that financial projections for the model show internal rates of return between 18 and 25 per cent, with payback periods of five to seven years, stressing that the existing supply gap guarantees strong market demand.
“The opportunity is clear, the fundamentals are strong, and the returns are compelling. Nigeria has over 3 million hectares of land suitable for oil palm cultivation, much of which remains underutilised,” he said.
“Existing plantations operate below optimal productivity due to ageing trees and limited access to improved inputs. Nigeria has the land, climate, market, and people. What we need now is decisive investment and coordinated action.”
In his remarks, the Permanent Secretary of the ministry, Dr. Marcus Olaniyi Ogunbiyi, represented by the Director of Farm Input Support Services, Engr. Abba Waziri, said the project gained momentum following ministerial approval of the Mass Industrial proposal as a national initiative.
He noted that extensive stakeholder consultations had been carried out to validate the National Oil Palm Development Strategy.
Ogunbiyi commended Mass Industrial Development and Logistics for initiating the partnership, describing it as timely and strategic for national productivity goals.
“This public-private partnership project on a joint development of Nigeria’s Palm Oil capacity is so timely and necessary as we work to adequately prepare Nigeria’s Oil industry for productivity, value addition, job creation, and global competitiveness,” he said.
Also speaking, the Chief Executive Officer of Mass Industrial Development and Logistics, Engr. Emmanuel Obiorah Anyaralu, described the initiative as a game changer for the sector, aligned with the Renewed Hope Agenda.
He said the programme would boost internally generated revenue and improve livelihoods across the palm oil value chain.
The stakeholders’ meeting brought together state governments, commissioners of agriculture, research institutions, development partners, investors, and consultants, with the aim of securing broad-based buy-in for the proposed development model.
