Nigeria’s Palm Oil sector attracts Billions in investment as demand rises – Reports

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The Nigerian palm oil industry has attracted over ₦2.13 trillion in investments over the last seven years, creating thousands of jobs and giving hope to smallholder farmers. Presco PLC and Okomu Oil Palm Company, Nigeria’s largest palm oil producers, have posted record profits for seven consecutive years despite challenging economic conditions.

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According to Celestine Ikuenobe, former executive director of the Nigerian Institute for Oil Palm Research (NIFOR), “Presco and Okomu’s sustained record gains are showing that it makes business sense to invest in the palm oil business.” He added that the strong results are also attracting investments in the palm oil business, with the potential for Nigerian producers to make profits from both local and international markets.

The demand for palm oil is high, with the country producing 1.4 million metric tonnes per annum, while local consumption is estimated at 2.7 million metric tonnes, leaving a demand-supply gap of about 1.3 million metric tonnes. This gap presents opportunities for new investors, experts say

Alphonsus Inyang, president of the National Palm Produce Association of Nigeria (NPPAN), noted that the industry has attracted significant investments in the last three years, despite the economic downturn. “It is one subsector that has attracted investments the most in the last three years,” he said.

Uchenna Uzor, a marketing professor and academic director of the Africa Retail Academy at Lagos Business School, attributed the investor confidence in the palm oil industry to a combination of factors, including constant record profits, the quest for local sourcing, creative usage of palm oil, and export potential. “The confidence of investors in the palm oil industry is very high, and the record profits by listed operators are fuelling it greatly,” he said.

The palm oil industry is expected to continue growing, driven by increasing demand for food and non-food products, including biodiesel and aviation fuel. With Nigeria needing a total plantation of about three million hectares of land to be self-sufficient in palm oil production, there is still room for growth and investment in the industry

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