Oil Palm Development Plan to Boost Nigeria’s Production to 10 Million Tonnes by 2050

News in brief:

-Nigeria plans to increase palm oil production from about 1.5 million metric tonnes to up to 10 million metric tonnes annually by 2050 under a new national strategy.

-The plan includes expanding cultivation to new states, strengthening governance structures, and empowering smallholder farmers.

Nigeria is targeting full self-sufficiency in palm oil production by 2050 under a new national development framework designed to expand output, strengthen governance, and reposition the country as a competitive global producer.

The National Palm Produce Association of Nigeria (NPPAN) says the goal is achievable through the effective implementation of the National Oil Palm Development Strategy, which aims to significantly scale production capacity over the coming decades.

Production Targets Under the New Strategy

Mr Alphonsus Inyang, National President of NPPAN, said Nigeria’s current annual production of between 1.4 and 1.5 million metric tonnes (mmt) could rise to between 9 and 10 mmt by 2050.

He spoke during an interview with the News Agency of Nigeria (NAN) on the sidelines of the National Oil Palm Development Strategy Validation Meeting.

Inyang, who also serves as Vice Chairman of the Technical Working Group responsible for developing the strategy, said the expansion would rely heavily on empowering smallholder farmers to increase productivity.

As part of the strategy, Nigeria plans to extend oil palm cultivation to additional states, including Taraba, Niger, and Kogi.

According to Inyang, Taraba State has strong potential for large-scale oil palm cultivation due to its vast land area and favourable environmental conditions.

“Taraba, with 69,000 square kilometres of land, is well placed to cultivate oil palm trees more than the whole southern part of the country,” he claimed.

He added that the state benefits from longer sunshine periods compared to southern Nigeria and has sufficient water resources in several areas, making it suitable for oil palm production.

Niger and Kogi states are also being considered for expanded cultivation as part of the national framework.

New Governance Structure for the Oil Palm Sector

A key component of the development strategy is the establishment of a stronger governance architecture to guide the sector.

The framework proposes the creation of a National Oil Palm Council and an Oil Palm Development Fund, alongside a National Smallholders Development Fund aimed at supporting farmers.

Inyang said the Nigerian Institute for Oil Palm Research would also be transitioned into a Nigerian Oil Palm Board to oversee research, innovation, and development in the sector.

Inyang criticised Nigeria’s current global ranking as the fifth-largest palm oil producer, describing it as a reflection of long-standing structural weaknesses.

According to him, the absence of a clear governance framework has discouraged investment and contributed to fragmentation in the industry.

“Governance architecture and governance structure are key to driving the sector,” he said.

He explained that the proposed structure would mirror systems used in leading palm oil-producing countries such as Malaysia and Indonesia.

The strategy also proposes allocating 25 per cent of tariffs collected on palm oil imports to fund industry development initiatives.

Building a Sustainable and Competitive Industry

Dr Fatai Afolabi, Managing Consultant at Foremost Development Services, said the strategy is designed to build a sustainable palm oil industry that balances large-scale estates with smallholder participation.

He explained that the framework promotes a hybrid development model that integrates industrial plantations with smallholder farmers through sustainable practices, research, and efficient supply chains.

The approach, he said, aims to ensure Nigeria achieves self-sufficiency while strengthening competitiveness and supporting inclusive growth across the value chain.