Association Alleges Continued Influx Of Imported Vegetable Oil Despite Ban

News in Brief:

—VEOPAN says over 100 imported vegetable oil brands are circulating in Nigerian markets despite the product remaining on the Federal Government’s prohibition list.

—The association accused regulatory agencies of weak enforcement, warning that smuggling is undermining local investments in oil palm cultivation and processing.

The Vegetable/Edible Oil Producers Association of Nigeria (VEOPAN) has expressed concern over the continued influx of imported vegetable oil into Nigerian markets despite the product remaining on the Federal Government’s prohibition list under the 2026 fiscal policy measures.

The association warned that the situation threatens investments in the domestic vegetable oil industry and discourages local producers who have committed substantial resources to backward integration programmes.

Imported Vegetable Oil Floods Market

National Chairman of the association, Okey Ikoro, stated that more than 100 imported vegetable oil brands are currently being sold across Nigerian markets despite the import restrictions.

Speaking during an interview on Arise News, Ikoro disclosed that members of the association recently intercepted three trailers allegedly transporting smuggled vegetable oil through the Badagry corridor.

According to him, the widespread availability of imported vegetable oil products suggests that enforcement of the government’s prohibition policy has weakened significantly.

Ikoro noted that the prohibition policy introduced in 2023 encouraged major investments by leading players in the vegetable oil sector. He revealed that companies such as Okomu, Presco and PZ Wilmar embarked on expansion projects and backward integration initiatives based on confidence created by the policy.

“The 2023 fiscal policy definitely placed vegetable oil under prohibition, and a lot of milestones were gained because it was a long-term policy from 2023 to 2026. A lot of companies went into backward integration, huge companies like Okomu, Presco, and PZ Wilmar, all of them went into major expansion because the policy gave protection to the industry,” he said.

Regulatory Agencies Accused of Weak Enforcement

The VEOPAN chairman criticised agencies responsible for implementing the policy, accusing them of failing to prevent the entry of prohibited products into the country.

He specifically mentioned the Nigeria Customs Service, the National Agency for Food and Drug Administration and Control (NAFDAC), and the Standards Organisation of Nigeria (SON) as institutions that should strengthen enforcement efforts.

According to him, enforcement of the policies deteriorated considerably in 2024 and 2025.

“But two years later, entering 2024 and 2025, there was a total collapse of implementation on the side of the agencies that were supposed to monitor the fiscal policy, especially in the area of prohibition of items,” Ikoro stated.

Local Producers Face Investment Setbacks

Ikoro said the influx of imported vegetable oil products has created challenges for local manufacturers who invested heavily in oil palm cultivation, refining, and processing facilities.

He warned that continued smuggling could undermine the gains achieved through industry expansion efforts and weaken confidence in government policies designed to support domestic production.

The association believes stronger enforcement is necessary to protect investments and encourage further growth within the sector.

Beyond the economic impact, VEOPAN also questioned the quality and safety standards of imported vegetable oils entering the market. Ikoro argued that locally produced vegetable oils are subject to strict regulatory oversight, including routine inspections and product testing.

“All the vegetable oils produced in Nigeria are regulated. NAFDAC inspects the factories regularly and tests the products to ensure they meet fortification and quality standards. But the imported oil just comes in, and nobody is monitoring it. They do not carry NAFDAC numbers or labels, yet they are all over the market,” he said.

Call for Stricter Market Surveillance

The association called on relevant government agencies to strengthen border controls, improve market surveillance, and enforce existing fiscal policies to curb the influx of imported vegetable oil.

VEOPAN maintained that protecting local producers is critical to sustaining investments, expanding domestic production capacity, creating jobs, and strengthening Nigeria’s food security objectives.