By Daniel Edu
Nigeria has witnessed a notable surge in its palm oil imports from Malaysia, one of the world’s top producers, with a remarkable 65.3% increase in the first nine months of 2023.
Data sourced from the Malaysian Palm Oil Council revealed that Nigeria’s palm oil imports from Malaysia soared to 234,324 metric tons from January to September 2023, compared to 141,786 MT during the same period in 2022, reflecting a substantial increment of 92,538 MT.
The report also identified India, China, Kenya, Netherlands, Japan, and Turkey among the top 10 major importers of Malaysian palm oil.
In an effort to promote local crude palm oil production, the Nigerian government imposed a 35% tariff (comprising a 10% duty and a 25% levy) on palm oil imports into the country, aiming to safeguard and stimulate growth in the domestic palm oil industry.
Despite these protective measures, Nigerian consumers have continued to favor imported palm oil over domestically produced alternatives, primarily due to the persistent gap between demand and supply.
Experts estimate that Nigeria’s palm oil production ranges from 900,000 to 1.3 million metric tons, with imports exceeding 500 billion Naira annually. Given a national demand of 2.1 million metric tons, the supply shortfall stands at around 800,000 metric tons.
Kabir Ibrahim, the National President of the All Farmers Association of Nigeria, emphasized that Nigeria has yet to attain food self-sufficiency.
