By Simeon Shodimu
In a renewed bid to cut import dependence and reposition Nigeria as a major player in the global palm oil market, the Federal Government has unveiled an ambitious investment-driven plan to revive the sector through large-scale estates and industrial processing.
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The Federal Ministry of Agriculture and Food Security has launched a coordinated initiative aimed at revitalising Nigeria’s palm oil industry, with a target of achieving up to $500 million in annual import substitution. The programme is structured around a public-private investment model focused on large-scale plantation development and integrated downstream processing.
Developed in partnership with Mass Industrial Development and Logistics Limited and key industry stakeholders, the initiative is designed to bridge Nigeria’s palm oil supply deficit, stimulate agro-industrial expansion, and generate employment across the value chain.
Minister of Agriculture and Food Security, Abubakar Kyari—represented by his Senior Technical Assistant, Ibrahim Alkali—explained that the programme will operate as a public-private partnership. He noted that while government will provide policy, regulatory, and institutional support, it will not rely on public borrowing to fund the initiative.
Under the first phase, seven integrated oil palm estates, each spanning 10,000 hectares, will be established across participating states. These estates will feature modern milling and refining facilities, storage and logistics infrastructure, as well as residential communities capable of supporting over 2,000 families per location.
The second phase will focus on expanding into downstream processing and manufacturing of palm-based products, with a strong emphasis on value addition and export competitiveness.
Financial projections presented at the stakeholders’ meeting indicate internal rates of return ranging between 18 and 25 percent, with a payback period of five to seven years. Officials attributed the strong investment outlook to robust domestic demand and access to regional export markets.
Kyari highlighted that Nigeria possesses over three million hectares suitable for oil palm cultivation, much of which remains underutilised. He also pointed to declining productivity in existing plantations due to ageing trees and limited access to improved inputs.
He called on state governments to play a pivotal role by facilitating land acquisition, enabling supportive policies, investing in infrastructure, and engaging host communities. According to him, states stand to benefit from increased investments, improved internally generated revenue, and enhanced rural livelihoods.
Permanent Secretary of the ministry, Marcus Olaniyi Ogunbiyi—represented by Abba Waziri, Director of Farm Input Support Services—said the initiative follows the validation of the National Oil Palm Development Strategy after extensive consultations with stakeholders.
He also commended Emmanuel Obiorah Anyaralu, Managing Director of Mass Industrial Development and Logistics Limited, for spearheading the joint development framework.
Anyaralu, in his remarks, expressed confidence that the programme would transform Nigeria’s palm oil ecosystem, improve farmer incomes, and strengthen the country’s position in both domestic and international markets.
The Abuja stakeholders’ meeting drew participation from state commissioners, investors, development partners, and value chain operators, aimed at securing sub-national support for what officials describe as a commercially viable pathway to restoring Nigeria’s competitiveness in the global palm oil industry.
