Lucky Obukohwo, Reporting
The Chief Research Officer of the Nigerian Institute for Oil Palm Research (NIFOR), Mr. Omofomwan Isaac, has attributed the continuous increase in prices of palm oil to insufficient local production.
He made the assertion while speaking with journalists in Benin City, Edo State capital.
Mr. Isaac said the sector is facing serious pressure due to structural challenges affecting production, distribution, and market operations.
According to him, recent research showed that the average price of palm oil in Nigeria rose sharply from N1.17 million per ton in 2022 to N2.38 million per ton in 2025.
Isaac further noted that prices increased by more than 50 percent in 2025 alone, underscoring the severity of the situation.
The Chief Research Officer of the institution added that despite Nigeria’s favourable climate for oil palm cultivation, production levels remain low because of ageing plantations and the slow adoption of improved, high-yield seedlings.
The researcher maintained that Nigeria’s palm oil industry requires urgent and sustained investment to increase production and satisfy growing domestic demand, amid concerns over rising prices and market instability.
He stressed that without significant financial investment in large-scale replanting and improved planting materials, the country would continue to struggle to meet its rising palm oil demand.
The NIFOR researcher also identified high transportation costs as a key factor driving up prices.
He explained that poor road infrastructure and inefficient logistics systems have widened the price gap between producing states in the south and major consuming markets in the north.
In addition, he pointed to weak market coordination and lack of transparency as contributors to price volatility.
According to him, fragmented pricing systems, inadequate storage facilities, and speculative trading activities have made the market unstable for both producers and consumers.
Looking ahead, Isaac cautioned that palm oil prices could climb beyond N7.5 million per ton by 2030 if the current trend continues, posing a serious threat to food affordability and industrial growth.
To tackle the challenges, he proposed a five-point strategy focused on boosting investment across the palm oil value chain.
This includes large-scale replanting with improved, climate-resilient oil palm varieties to enhance productivity.
He also called for sustained investment in transportation infrastructure to lower distribution costs, as well as improved processing and storage facilities to reduce post-harvest losses and improve efficiency.
Furthermore, he urged greater support for smallholder farmers through easier access to credit facilities, farm inputs, and extension services, noting that they play a critical role in expanding production.
He added that establishing a strategic buffer stock system would help stabilise prices during supply disruptions.
He reiterated that collaboration among government, private investors, and financial institutions is crucial to ensuring long-term stability and growth in Nigeria’s palm oil market.
