FG eyes $500m palm oil import savings

From Okwe Obi, Abuja

The Federal Government has announced plans to rake in $500 million through palm oil import savings.

Minister of Agriculture and Food Security, Abubakar Kyari, stated this at the national stakeholders’ meeting for joint development of Nigeria’s palm oil production capacity yesterday in Abuja.

Kyari claimed that the scheme would operate as a public-private partnership, with the government providing institutional, policy and regulatory backing without recourse to public sector borrowing.

The Minister, represented by his Senior Technical Assistant, Ibrahim Alkali, explained that the sector’s success would depend on stakeholders’ commitment to collaboration.

Also, he revealed that the nation led global palm oil supply in the 1960s with over 40 percent market share but now produces approximately 1.4 million metric tonnes yearly against domestic demand exceeding 2.5 million metric tonnes.

According to him, “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.”

He stated that the initiative aligned with the Renewed Hope Agenda of President Bola Tinubu, and the ministry’s recently validated National Oil Palm Development Strategy designed to expand production, improve yields, strengthen processing capacity, and integrate smallholders into structured value chains.

“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.

“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,” he said.

He further revealed that financial projections for the model indicate internal rates of return ranging between 18 and 25 percent, with payback periods estimated at five to seven years, noting that the existing domestic supply gap of over 1 million metric tonnes annually ensures immediate market demand, alongside access to regional and international markets.

“Nigeria has over 3 million hectares of land suitable for oil palm cultivation, much of which remains underutilized ,Existing plantations operate below optimal productivity level 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,” he added.