The United Nations Industrial Development Organisation (UNIDO) and the National Palm Produce Association of Nigeria (NPPAN) have successfully attracted a €300 million investment into Nigeria’s palm oil sector. This initiative aims to revitalize the stagnant industry, enhance local production, and create over 300,000 jobs across the value chain, according to Alphonsus Inyang, president of NPPAN.
Speaking on the development, Inyang emphasized the transformative potential of the investment, which focuses on modernizing the sector through technology and stimulating interest from local and international investors. “For a long time, the oil palm industry in Nigeria has been stagnant. This investment will not only boost production but also make the sector more attractive to stakeholders,” he said.
The investment follows a nine-day tour in November 2024 by a team of investors from 15 companies, predominantly from Germany, Italy, France, Belgium, and Malaysia. These investors assessed opportunities in Cross River and Akwa Ibom States, which are set to benefit significantly from the €300 million inflow. The funds will support activities including palm wine production, tree replanting over 30,000 hectares, and the development of packaging facilities.
Inyang highlighted that the palm wine business alone is projected to create over 100,000 new ventures for tappers, while additional activities along the value chain could generate another 200,000 jobs. He attributed the choice of Cross River and Akwa Ibom to their large population of smallholder farmers, a primary target of UNIDO’s initiative.
Despite being Africa’s largest economy, Nigeria currently ranks fifth globally in palm oil production, with an output of 1.4 million metric tons annually—a stark contrast to Indonesia’s 50 million tons. Inyang proposed a federal government-supported model that could elevate Nigeria to third place in global rankings. He urged the government to back palm oil cultivation at the household level, describing it as a game-changing strategy.
Inyang also warned against continued reliance on imports from Malaysia and Indonesia, emphasizing the need to harness Nigeria’s vast potential. “We have the market and the population. Yet, we depend on imports while smaller nations like Ivory Coast export palm oil. This needs to change,” he said, calling for urgent action to reposition Nigeria as a leading producer in the global palm oil industry.
