FG targets $500m import savings, moves to revive palm oil sector

The federal government says it is mobilising state governments, investors and key stakeholders to revive Nigeria’s palm oil sector, with a target of saving up to $500 million annually from reduced imports.

The Federal Ministry of Agriculture and Food Security, in collaboration with Mass Industrial Development and Logistics Limited and other stakeholders, convened a national meeting in Abuja to drive partnerships aimed at boosting production, industrial growth and job creation, according to a statement signed by Ezeaja Ikemefuna.

Speaking at the event, the Minister of Agriculture and Food Security, Abubakar Kyari, said the initiative would reposition the palm oil sub-sector as a key driver of economic growth without recourse to public borrowing.

“It is time to move from intention to implementation. Nigeria must take bold and deliberate steps to reposition agriculture as a driver of economic growth,” he said.

Kyari noted that although Nigeria once accounted for over 40 per cent of global palm oil supply in the 1960s, current production stands at about 1.4 million metric tonnes annually, far below the domestic demand of over 2.5 million metric tonnes.

“The result is a deficit of more than one million metric tonnes every year — one that compels us to spend between 500 and 600 million dollars annually on imports. What this means is simple: we are exporting opportunities and importing what we have the capacity to produce,” he added.

The minister said the initiative aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu and the National Oil Palm Development Strategy, which seeks to expand production, improve yields and integrate smallholder farmers into structured value chains.

Under the plan, phase one will establish seven integrated oil palm estates of 10,000 hectares each across participating states, designed as full agro-industrial hubs with processing, storage and residential infrastructure.