Land acquisition, insecurity, adulterated seedlings, funding hindering palm oil investments in Nigeria – Stakeholders warn

…calls for processing, technology transfer, and investments to drive the value chain

Stakeholders in Nigeria’s palm oil industry have identified land acquisition bottlenecks, insecurity, adulterated seedlings and limited access to funding as major challenges hindering investments and slowing the growth of the sector, warning that the country risks falling further behind global competitors if urgent reforms are not implemented.

The concerns were raised on Tuesday in Abuja at the 2026 BusinessDay International Palm Oil Summit, themed: “From Palm Oil to Industrial Leadership,” where industry players also called for increased investments in processing, technology transfer, logistics and infrastructure to strengthen Nigeria’s palm oil value chain and drive industrial growth.

Speaking at the summit, Isona Leonard Gold, Executive Director of the Nigerian Institute for Oil Palm Research (NIFOR), said Nigeria has continued to lag behind countries like Indonesia, Malaysia, Thailand and Colombia despite having favourable climatic conditions for oil palm cultivation.

According to him, Nigeria currently produces about 1.5 million tonnes of palm oil annually against a domestic demand of nearly three million tonnes.

Gold noted that poor implementation of policies, insecurity and delays in land acquisition have continued to frustrate investors in the sector.

“To acquire land in Nigeria, especially land suitable for oil palm cultivation, can take between five and seven years. That is a major constraint for investors,” he said.

He added that insecurity in farming communities has also increased operational costs for plantation owners, discouraging many prospective investors from venturing into the industry.

Gold further warned against the growing circulation of adulterated seedlings in the sector, saying unregulated operators were exploiting unsuspecting farmers.

“The level of adulteration of planting materials in the industry is alarming. Some people advertise fake seedlings online, and by the time farmers discover the problem after three years, the sellers are nowhere to be found,” he said.

He urged farmers to patronise NIFOR for certified planting materials and technical support, stressing that stronger regulation and enforcement would help sanitise the industry.

Also speaking, Joe Onyiuke, National President of the Oil Palm Growers Association of Nigeria (OPGAN), said smallholder farmers account for nearly 80 per cent of Nigeria’s palm oil production but continue to face inadequate funding, poor access to training and limited government support.

He said empowering smallholder farmers through cooperatives, financing and access to quality seedlings would significantly boost production and create sustainable jobs across rural communities.

According to him, the palm oil industry has the capacity to drive industrialisation, employment generation and economic diversification if properly supported.

“We have the resources, the land and the manpower. What we need is sustained government support, consistency in policy and investment in grassroots farmers who are the backbone of the industry,” he said.

Onyiuke commended the Cross River State Government for purchasing 3.5 million seedlings from NIFOR for distribution to smallholder farmers, describing it as one of the largest seedling support programmes in recent years.

He also stressed the need for greater investment in processing facilities, storage infrastructure and logistics to reduce post-harvest losses and strengthen the palm oil value chain.

According to him, beyond food production, palm oil has enormous industrial applications in cosmetics, pharmaceuticals, bioenergy and household products.

In his remarks, Emeka Obegolu, President of the Abuja Chamber of Commerce and Industry (ACCI), represented by Aliyu Idi Hong, former Minister of Trade and Investment, described palm oil as a strategic economic asset capable of driving industrialisation, job creation, non-oil exports and rural development.

Obegolu said that despite Nigeria’s vast arable land and favourable climate for oil palm cultivation, the country continues to underperform in production and processing, resulting in dependence on imports and loss of economic opportunities.

He identified low productivity, inadequate processing infrastructure, limited access to affordable financing, inconsistent policy implementation and smuggling as major constraints affecting the sector’s competitiveness.

According to him, transforming the sector would require deliberate and sustained collaboration between government agencies, private investors, development institutions and industry associations.

“The chamber advocates increased investment in modern plantation development, mechanised processing facilities, storage systems and value-addition initiatives,” he said.

He also stressed the need for policy stability, improved access to financing for farmers and cooperatives, and stronger support for agricultural research institutions to improve seedlings, yields and product quality.

Obegolu further called for greater attention to export promotion, certification processes and trade facilitation mechanisms to help Nigeria reclaim its position as a leading global palm oil producer.

Participants at the summit also noted that improved processing capacity and encouraging technology transfer would help Nigeria move from raw commodity production to industrial leadership in the global palm oil market.

They called for stronger collaboration between government agencies, private investors, research institutions and international partners to unlock the sector’s full economic potential.