Key Highlights:

• Olam Agri to onboard 5,000 small-scale farmers in Kwara State under a new soybean supply initiative.

• Partnership with IDH and Arzikin Noma offers credit, mechanization, and training to boost local production. 

• The move supports a new 350,000-ton capacity oil extraction plant amid Nigeria’s booming edible oil market.

Olam Agri, a subsidiary of Singapore’s Olam Group, will integrate 5,000 smallholder farmers into its soybean supply chain in Nigeria’s Kwara State, as part of a new push to grow its edible oil business.

The agreement, signed on June 19, brings together Olam Agri, IDH (a Dutch foundation focused on sustainable value chains), and Nigerian agribusiness Arzikin Noma. The initiative aims to increase local soybean output to feed Olam’s new processing plant.

Farmers will receive input credit, mechanization support, access to finance, and training in sustainable practices. The goal is to raise both yields and quality, ensuring a consistent supply and boosting farmer incomes.

“This initiative promotes economic empowerment, improves livelihoods, and strengthens the resilience of Nigeria’s agriculture sector,” said Mustafa Turra, Vice-President and Head of the Soybean Project at Olam Agri. “It also guarantees a transparent and profitable outlet for farmers.”

Olam Agri recently launched a soybean oil extraction plant in Asa, Kwara State. The facility can process 350,000 tons annually, but current local production—at just 55,720 tons in 2024—falls far short.

To fully utilize the plant, the company needs to scale up local sourcing, a move that could reduce import dependence and expand rural economic activity.

The investment reflects Olam’s growing stake in Nigeria’s edible oil market, where demand is surging. The country’s edible oil sector is projected to reach $2.85 billion in 2025, with an 11.54% compound annual growth rate (CAGR) through 2030, according to Statista.

Olam already operates a sesame oil facility in Ogun State. With the new plant, the company aims to deepen local integration and capture more value across Nigeria’s oilseed processing chain.

This article was initially published in French by Stéphanas Assocle

Edited in English by Ola Schad Akinocho