Nigeria’s Oil Palm Growers to replant 1.5m hectares in industry revamp plan
In a landmark move to reinvigorate Nigeria’s oil palm sector, the Oil Palm Growers Association of Nigeria (OPGAN) has unveiled a 5-year Oil Palm Development Strategy (2024–2029) with the ambitious goal of replanting 1.5 million hectares across 27 oil palm-producing states. The initiative aims to elevate Nigeria from its current 5th position to 3rd place globally in palm oil production.
According to OPGAN President, Joe Onyiuke, this strategy is the first-ever comprehensive blueprint crafted by a commodity-based organisation in Nigeria, focusing specifically on addressing the oil palm subsector’s structural inefficiencies and unlocking its full potential.
This document represents a paradigm shift meticulously crafted to address the shortcomings of the past and chart a course towards a vibrant and sustainable oil palm sector, Onyiuke stated during the Abuja launch.
The strategy identifies key challenges such as inefficient land use, market instability, and lack of coordinated planning. It presents a roadmap that includes:
- Sustainable replanting practices
- Strategic investments
- Technological innovation
- Inclusive value chain growth
It also calls for deep collaboration between government bodies, private investors, development partners, and farming communities to actualise its targets.
The strategy also addresses a glaring supply gap: while Nigeria consumed 3 million metric tonnes (MT) of fats and oils in 2018, it only produced 1.02 million MT, resulting in a 1.92 million MT deficit. To leapfrog to the 3rd global position, Nigeria will need to produce an additional 3.38 million MT of palm oil—equivalent to cultivating over 965,000 hectares by 2029, based on a productivity target of 3.5 MT per hectare.
Speaking in support, Abdullahi G. Abubakar, Director at the Federal Department of Agriculture, lauded the initiative for aligning with the Federal Government’s food security ambitions. He described the plan as a model roadmap that other commodity associations should emulate to drive growth within their respective sectors.
This document serves as a testament to what can be achieved when stakeholders join forces in pursuit of a common goal,” Abubakar noted.
He urged for dedicated stakeholder buy-in, resource mobilisation, and multi-sector collaboration to ensure its successful implementation.
Source- BusinessDay
Expert Review for Agri-Food Stakeholders
OPGAN’s strategy is a significant milestone in Nigeria’s efforts to reclaim its historic leadership in global oil palm production—a role it once held in the 1960s. Below are three critical dimensions for stakeholders to consider:
- From Aspirations to Execution: Land, Capital & Technology Must Align
The 1.5 million hectare replanting target—while commendable—is capital-intensive, requiring billions in investment, high-quality seedlings, robust extension services, and mechanisation. For this to work:
– Land tenure security must be addressed to de-risk investment.
– Financial institutions must design blended financing products for smallholders and grower cooperatives.
– Agri-tech companies must be involved in optimizing productivity and traceability. - Strategic Collaboration, Not Silos
The oil palm sector cannot thrive on fragmented efforts. OPGAN’s strategy rightly promotes collective action. Critical areas needing coordination include:
– Seedling production and distribution networks
– Processing infrastructure scale-up
– Market linkage platforms, especially for local processors and exporters
It’s also vital that state governments integrate this roadmap into their agricultural masterplans to avoid disjointed policy frameworks. - Trade, Substitution, and Industrial Linkages
The oil palm industry doesn’t just serve food markets—it also supports cosmetics, pharmaceuticals, and bio-energy sectors. Closing the local supply gap would:
– Reduce over-reliance on palm oil imports, which drain foreign exchange.
– Strengthen local agro-industrial capacity and value-added processing.
– Offer youth and women employment opportunities across the value chain.
If Nigeria achieves the projected output, it could begin to challenge Thailand’s 2.7 million MT production and significantly increase its export earnings.
Stakeholder Call-to-Action
Whether you’re a policy actor, investor, development partner, farmer, or agro-processor, the time to act is now. Alignment with the Oil Palm Development Strategy could:
- Unlock targeted incentives and subsidies,
- Enable access to structured markets, and
- Position you for partnerships that will define the next phase of Nigeria’s agribusiness evolution.
