By Lanre Shodimu
Once a symbol of agricultural pride and economic strength, Nigeria’s oil palm industry has travelled a long and winding road—from global dominance to import dependence—while Malaysia, a former beneficiary of Nigerian seedlings, now reaps the rewards of strategic vision and sustained investment.
However, before Malaysia’s palm oil boom reshaped global markets, the oil palm tree was deeply rooted in Nigeria’s landscape—its rich, red fruit a staple in kitchens and a cornerstone of local economies. The crop was not just an agricultural product; it was part of everyday life, defining diets and livelihoods across communities.
Yet, history has taken an unexpected turn. What once thrived in abundance in Nigeria found renewed purpose thousands of miles away in Southeast Asia. Today, Malaysia stands tall as a global leader in palm oil exports, while Nigeria increasingly relies on imports to satisfy its domestic demand.
Current figures paint a stark picture. Nigeria produces between 1.2 million and 1.5 million tonnes of palm oil annually, significantly below its estimated demand of about 2.4 million tonnes. The deficit is routinely filled by imports, largely from Malaysia and other producing nations. This reversal raises a critical question: how did a country that once introduced oil palm to Malaysia lose its foothold in the industry?
The answer lies partly in history. In 1965, Nigeria commanded an impressive 43 percent of the global palm oil market, at a time when total demand stood at about 1.5 million tonnes. Fast forward to today, global demand has surged to approximately 14 million tonnes, yet Nigeria’s share has dwindled to just seven percent.
Industry stakeholders attribute this decline to years of neglect and insufficient investment. According to Alphonsus Inyang, president of the National Palm Produce Association of Nigeria, the country’s production capacity has steadily weakened, pushing Nigeria down to fifth place globally—behind Indonesia, Malaysia, Thailand, and Colombia.
While Nigeria’s influence has waned, Malaysia’s ascent has been nothing short of remarkable. In 2025, the country recorded its highest-ever crude palm oil production at 20.28 million tonnes, marking a 4.9 percent increase from the previous year, according to the Malaysia Palm Oil Council (MPOC). This growth reflects not just scale, but strategy.
Trade patterns further underscore the shift. Sub-Saharan Africa has now overtaken South Asia and the Asia Pacific to become the largest importing region for Malaysian palm oil. Imports into the region rose by 11.9 percent in 2025 to 4.12 million tonnes, with Nigeria alone increasing its imports by 15.1 percent to 285,825 tonnes. Kenya, meanwhile, emerged as the world’s second-largest importer, highlighting the region’s growing dependence.
Malaysia’s success is anchored in a combination of smart trade facilitation and proactive engagement. Central to this has been the creation of business-matching platforms that directly connect buyers and sellers, unlocking deals and expanding market reach. Complementing this approach is consistent stakeholder engagement through expert discussions and policy dialogues addressing issues such as sustainability, nutrition, and evolving market trends.
These efforts have delivered measurable results. In 2025, Malaysia’s palm oil sector generated approximately $24 billion in revenue, driven by strong global demand and reinforced by trust, transparency, and effective market positioning.
Equally important is Malaysia’s commitment to sustainability and credibility. Through frameworks such as the Malaysian Sustainable Palm Oil (MSPO) certification and a robust National Traceability System, the country has assured global buyers of product quality and environmental compliance—factors that increasingly influence international trade.
Beyond policy and production, Malaysia has also leveraged culture and communication to its advantage. Creative campaigns like ‘Palms Up’ and collaborations with popular media, including themed content in the animation Upin & Ipin, have helped reshape perceptions and expand consumer engagement, particularly among younger audiences.
Despite these successes, experts caution that Nigeria cannot simply replicate Malaysia’s model. The country’s agricultural landscape, socio-economic realities, and institutional frameworks demand a tailored approach. As Joe Onyiuke, national president of the Oil Palm Growers Association of Nigeria, notes, Nigeria must develop strategies suited to its own terrain to compete effectively on the global stage.
The path forward, analysts suggest, lies in renewed commitment—replanting aging plantations, investing in modern processing, enhancing value addition, and fostering strategic partnerships. With the right mix of policy support and private sector drive, Nigeria could yet reclaim a meaningful position in the global palm oil value chain.
For now, however, the story remains one of contrast: a nation that once led the world in palm oil production now watches as others harvest the fruits of a legacy it helped to plant.
