Nigeria Crude palm oil imports from Malaysia was 63,788 metric tons in Q1 2023, representing 505% increment compared to the same period last year.
According to data by the Malaysian Palm Oil Council (MPOC), Nigeria is not one of the top importers from the country which lists India and China as its biggest customers. However, the quantity imported into the country is still a sign of trouble.
Why? Nigeria is well situated to be a major crude palm oil producer. In fact, in the 1950s and 1960s, the crop was the major agricultural export product and top foreign exchange earner, as a Premium Times article claimed. However, once a top producer, the country now ranks fifth in the world. It produces only a small fraction of the total global average.
Why Nigeria imports crude oil palm
For example, while Nigeria produces about 1,400,000 metric tons of crude palm oil, Malaysia produces 45,500,000 metric tons. Meanwhile, it is not enough to even satisfy the domestic consumption need which requires nearly 1,800,000 metric tons annually.
If the upward trend continues, the volume of crude palm oil importation in 2023 will surpass that of 2022. The country had imported 227,035 metric tons of the product the past year.
In its coverage of similar report, Leadership pointed out that the rise in crude oil imports is happening despite the efforts to increase production locally. The federal government, for example, listed it as a restricted forex access item along with rice and cement. Also, there is a 35% tariff on palm oil imports.
Despite these efforts, the crude oil palm imports sector continues to rise. Some desperate buyers even rely on smugglers to get their products. Its importance in the manufacturing of cooking oil, margarine, soaps, inks, and so on, makes it a much sought-after raw material.
