Nigeria spends £23 billion on palm oil imports despite its status as a top producer

…Cocoa powder imports reach ₦9.55 billion as agricultural trade deficit widens

According to foreign trade data, Nigeria spent about ₦23 billion importing crude palm oil from neighboring West African countries by the first three months of 2026, despite being one of Africa’s largest producers of the commodity.

Data obtained from the Foreign Trade Statistics report published by the National Bureau of Statistics showed that the import bill covered the period from January to March 2026 and placed crude palm oil among the main agricultural products introduced into the country during that period.

The development highlights a growing contradiction in Africa’s largest economy, where local palm oil production remains insufficient to meet growing domestic demand, forcing continued reliance on imports including from the West African sub-region.

Nigeria, widely recognized as one of the world’s leading producers of palm oil, continues to face supply shortages due to inadequate processing capacity, low yields and underdeveloped industrial-scale plantations, despite favorable climate conditions and vast arable land.

Industry analysts note that demand for palm oil has increased in recent years, driven by its widespread use in food, cosmetics, pharmaceutical and manufacturing production, including the production of soaps and detergents.

In addition to palm oil, the country spent around ₦9.55 billion importing cocoa powder from West African countries over the same period, further reflecting pressure on domestic agricultural processing industries.

The latest data adds to Nigeria’s rising import spending profile in early 2026, amid lingering concerns over the country’s dependence on foreign goods, despite repeated government interventions aimed at boosting local manufacturing and reducing pressure on foreign exchange reserves.

Previous trade data for the same period also showed significant spending on imports of consumer and industrial goods, including plastic and rubber products, underscoring the continuing structural imbalance in Nigeria’s trade model.

Economists warn that unless local production capacity is expanded and agro-industrial investment significantly improved, Nigeria could continue to experience high import costs even in sectors where it holds comparative production advantages.

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