In the past six months, Nigeria has imported an average of 96,114 metric tonnes of crude palm oil from Malaysia, valued at N128 billion ($87.25 million).
Due to a shortage in local production, the country has been relying on these imports for domestic and industrial consumption, as palm oil prices reached $887 per tonne.
Between January 2023 and June 2024, a total of 624,196 tonnes of crude palm oil were imported from Malaysia. In 2023, 304,043 tonnes were ferried to Nigerian ports, while 227,035 tonnes were imported in 2022.
Malaysia has witnessed a 24% increase in palm oil exports to Africa at the beginning of 2024. The majority of the volume was shipped to East Africa (63%), followed by North and West Africa, which accounted for 15% each. South Africa received 4%, and Central Africa received 3% of the exports.
Within the African market, Kenya, Djibouti, Egypt, Tanzania, and Madagascar accounted for 71% of the total Malaysian palm oil imports. In 2023 alone, Nigeria imported $600 million worth of palm oil.
Recently, palm oil stakeholders in Nigeria requested the technical support of the Council of Palm Oil Producing Countries (CPOPC) to boost production and improve the livelihood of smallholder farmers. The National President of the National Palm Produce Association of Nigeria (NPPAN), Amb. Alphonsus Inyang, specifically highlighted the need for technological transfer, capacity building, and provision of hybrid inputs to help smallholder farmers increase their production capacity.
Inyang also called for the formation of a global alliance of smallholder farmers to advocate for their interests in global policy-making processes. He emphasized that this alliance aims to share knowledge and address challenges affecting the industry’s growth and prosperity.
As part of their efforts to enhance Nigeria’s palm oil sector, CPOPC officials, including Secretary General Dr. Rizal Lukman, visited the country to seek collaboration. Lukman highlighted the potential for Nigeria to become a leading palm oil producer, emphasizing the importance of yield and sustainability.
CPOPC’s objective is to unify all oil-producing countries as a strong voice to address challenges faced by the industry, including negative perceptions and the impact of climate change and deforestation.
Yakubu Dogara, the National Patron of NPPAN, expressed his commitment to achieving success across the oil palm value chain in Nigeria.
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