Palm Oil Production Hits 1.57M Tons in Nigeria, Up 12% in 2025

Nigeria’s palm oil industry saw significant growth in 2025, with production reaching 1.57 million metric tons (MMT). This marks a 12 percent rise compared to the roughly 1.4 MMT produced in 2024.

According to reports, the Council of Palm Oil Producing Countries (CPOPC) shared these figures during a recent visit to Abuja. The growth indicates renewed activity in the sector and increased partnerships with international partners.

Industry experts say the increase shows steady progress over the past five years. Production has risen from about 1.28 MMT in 2020 to the current 1.57 MMT, despite ongoing structural challenges facing the industry.

Growth Despite Ongoing Demand Gap

Even with the rise in output, domestic consumption keeps exceeding production levels. This situation forces Nigeria to rely on imports to meet the demand.

According to CPOPC data, demand grew from 2.45 MMT to 2.61 MMT during the same period, leaving a gap that still surpasses 1 million tons each year.

Reports say that during the council’s visit, Izzana Salleh, Secretary-General of the CPOPC, described the production figures as an encouraging sign for Nigeria’s palm oil value chain. She pointed out that this increase supports a broader goal of enhancing cooperation among producing nations and promoting sustainable growth in the sector.

“Together, producing nations can shape a stronger, more coordinated global voice, one that protects farmer livelihoods, advances food security, and ensures balanced, development‑oriented sustainability frameworks,” Salleh said.

Collaboration and Industry Outlook

The CPOPC mission stressed the importance of technical and policy cooperation to improve production practices, offer support to smallholders, and enhance value chain integration. Smallholder farmers in Nigeria, who produce most of the palm oil, often use outdated methods, resulting in low yields and fragmented supply chains.

Experts say addressing these issues is crucial for sustaining growth.

Dr. Alphonsus Inyang, President of the National Palm Produce Association of Nigeria (NPPAN), emphasized that greater collaboration with international organizations like the CPOPC could lead to better access to improved technologies and planting materials. This could boost productivity and help close the supply gap.

“Nigeria could benefit significantly from hybrid planting materials and technical support to improve yields and accelerate efforts to close the supply gap,” Inyang noted.

Strategic Importance and Focus on Policies

This production milestone happened alongside a renewed focus on agriculture as a key part of economic growth. The Federal Government has reaffirmed its commitment to prioritizing palm oil as a vital commodity for food security, rural livelihoods, and economic diversification.

Although Nigeria once dominated the global palm oil market in the mid-20th century, its current aspirations are becoming more realistic.

The recent production gains lay a solid base for renewed ambitions, especially as the country aims for full membership in the CPOPC and seeks more collaborations with leading producers.

Looking Forward

While production growth is encouraging, analysts warn that closing the domestic consumption gap and improving yields will need ongoing investment, technology adoption, and supportive policies.

As Nigeria works to utilize its natural resources and agricultural potential, the performance of the palm oil sector in 2025 may serve as a key indicator for broader agricultural change.