On the dusty roads of Ondo State, old palm groves once crowned rolling hills. Shadows of oil palms stretched far, and the air smelled of rich red oil and promise.
Among the few who remain is Pa Olumide Ojo, a farmer now mostly silent under those palms. His grove, once vibrant, stands half-abandoned, tractor tracks overgrown, presses unused. Yet, he remembers how his father’s harvests paid for school fees, church, and weddings.
‘I sold drums by the roadside,’ he repeats. ‘Now I buy oil from Malaysia. It’s a dream turned inside out.’
The Rise, Fall, and the Bill at Hand
Nigeria was once among the world’s leading producers of palm oil. For decades in the mid-20th century, palm oil was a major export, feeding both local industries and foreign demand. But over time, a mixture of ageing plantations, weak infrastructure, poor policy consistency, and neglect eroded production capacity.
Key figures paint the urgent reality:
Imports Are Surging: In 2023, Nigeria imported 304,043 metric tonnes (MT) of palm oil from Malaysia alone – up 34% from 227,035 MT in 2022. (FoodBusinessAfrica, Matrix News)
Demand vs Supply Gap: Experts estimate national demand at over 2.1 million MT, but local production lags at about 900,000 to 1.3 million MT, leaving a deficit of ~800,000 MT. (LagosLocalNews, [MPOC data])
Profitability Among Producers: Companies like Presco Plc have shown what’s possible. In 2024, Presco posted revenue of ?207.5 billion, a 102% leap from ?102.4 billion in 2023. Profit Before Tax rose by 128.7% to ?113.2 billion. (Vanguard, EconomyPost)
Despite these gains among large players, the smallholder and village farms – like Pa Ojo’s – remain under-resourced, under-invested, and unable to access the technical enhancements needed to compete or scale.
The Abandonment and Its Roots
What caused the retrogression?
Ageing Trees and Low Yields: Many oil palm plantations are over 20 years old – a threshold beyond which productivity declines sharply. Few replant; many groves were left untended.
Poor Processing Infrastructure: Without nearby mills, drying facilities, or reliable refineries, smallholders suffer from high post-harvest losses, low oil recovery, and poor quality.
Fragmented Value Chains: Lack of organised offtake, poor transport logistics, and weak linkages between farmers and processors reduce earnings and incentivise import reliance.
Policy Wash and Crumbling Support: Inconsistent tariffs, import bans occasionally flouted, weak enforcement, and insufficient investment in RandD and extension services have all contributed.
Technical Fixes: The Road to Redemption
For Nigeria to reclaim red gold, several levers must be pushed – drawing both from corporate successes and agricultural research.
Hybrid Seedlings and Replanting Old Groves
Research institutes like NIFOR (National Institute for Oil Palm Research) advocate using high-yield hybrids (such as Tenera) that significantly out-produce wild palms. Replanting old groves could more than double yields per hectare.
Processing Mills and Downstream Integration Establishing mini and regional mills closer to farms reduces transport costs, improves oil quality, and retains value locally. Companies like Presco show vertically integrated models (plantation + mill + refining + packaging) deliver both scale and profitability.
Policy and Tariff Consistency
Though Nigeria imposed a 35% tariff (10% duty + 25% levy) on palm oil imports, these are often insufficient against undercutting by foreign producers with heavily subsidised supply chains. Consistent enforcement, incentives for local refining, and support for smallholder cooperatives are essential.
Access to Finance and Extension
Smallholders need affordable loans, technical assistance, improved seedlings, and training in good agricultural practices – e.g., best harvesting times, proper drying, pest control.
Global Context: Price Maker, Not Price Taker
Palm oil isn’t just for cooking. Globally, it is used in:
Food products (margarines, snack foods)
Cosmetics and personal care (soaps, creams)
Biofuels and industrial lubricants
Countries like Malaysia and Indonesia have built massive export industries, with hundreds of millions in revenue, deeply integrated processing, and strong export networks. Nigeria, with its vast oil palm belt and climatic advantage, should be among these leaders – not reliant on imports.
What Success Looks Like: A Vision
Envision a renewed Nigeria where:
Pa Ojo’s grove is replanted with hybrid seedlings; local cooperative members process fruit into refined red oil, olein, and stearin, with value retained locally.
Mini-mills dot oil palm zones in Ondo, Cross River, Edo – reducing losses, improving quality.
Companies like Presco replicate operations at a smallholder scale: bringing extension, finance, inputs, and market access.
Nigeria reduces edible oil imports by as much as 40%, pocketing billions in foreign exchange and strengthening food sovereignty. (Vanguard, Presco projections)
The Takeaway: Reclaiming Red Gold
Palm oil is a silent inheritance. It fed colonial trade. It filled national treasuries. It was red gold. We lost it – not overnight, but little by little. But with data, intention, and investment, Nigeria can reclaim it.
The story of Pa Ojo is one of many. But each grove rebuilt, each tree planted, each mill built, moves us back toward being price makers, not price takers. The throne is still empty – let us grow into it.