FG targets $500M savings from Palm oil reset

Abubakar Kyari minister of agriculture and food security, represented by Ibrahim Alkali senior technical assistant, said the programme will operate as a public private partnership, with government providing policy, regulatory, and institutional backing without resorting to public borrowing.

Kyari said Nigeria currently produces about 1.4 million metric tonnes of palm oil annually against demand exceeding 2.5 million metric tonnes, leaving a deficit of over one million tonnes.

The gap drives import bills of between 500 million and 600 million dollars yearly.

He said the new model is designed to reverse that trend and reposition the sector as a driver of economic growth. “Nigeria must take deliberate steps to move from intention to implementation,” he said.

Under the plan, phase one will establish seven integrated oil palm estates of 10,000 hectares each across participating states.

The estates will combine cultivation with modern milling and refining facilities, storage, logistics infrastructure, and residential communities designed to support more than 2,000 families per location.

Phase two will expand into downstream processing and manufacturing of palm based products, targeting value addition and export competitiveness.

Financial projections presented at the stakeholders’ meeting show internal rates of return of between 18 percent and 25 percent, with payback periods of five to seven years. Officials said strong domestic demand and access to regional markets underpin the investment case.

Kyari noted that Nigeria has more than three million hectares suitable for oil palm cultivation, much of it underutilised, while existing plantations face productivity constraints due to ageing trees and limited access to improved inputs.

He urged state governments to play a central role by facilitating land access, enabling policies, infrastructure development, and community engagement, adding that states stand to gain from increased investment inflows, higher internally generated revenue, and improved rural livelihoods.

In his remarks, Marcus Olaniyi Ogunbiyi permanent secretary, represented by Abba Waziri director of farm input support services, said the project followed the ministry’s validation of the National Oil Palm Development Strategy after extensive stakeholder consultations.

He also acknowledged Emmanuel Obiorah Anyaralu managing director of Mass Industrial Development and Logistics, for initiating the joint development framework.

Anyaralu said the programme would transform the palm oil ecosystem, boost farmer incomes, and strengthen Nigeria’s position in both domestic and export markets.