• Nigeria set up expert group for an oil palm  traceability system to fight fraud and meet global standards

• Aims to attract $315.5M in foreign investment by proving ESG compliance.

• Plans to replant 1.5M hectares by 2030 to cut 20% import reliance.
  

Nigeria aims to establish a national traceability system for its palm oil sector. To support this goal, Agriculture Minister Abubakar Kyari inaugurated an interministerial committee on July 23 to oversee its implementation.

According to Kyari, this expert group is mandated to coordinate efforts among federal and state government agencies, private sector stakeholders, producer cooperatives, processors, market associations, development partners, and donors.

Authorities seek to combat fraudulent practices such as adulteration and poor packaging, build consumer trust, and ensure compliance with both national and international quality standards. “The establishment of a national traceability system for palm oil is a clear demonstration of our determination to modernize agricultural value chains, enhance global competitiveness, and promote responsible production and sourcing throughout Nigeria’s oil palm sector,” Kyari said.

A lever for attracting more investment?

Implementing a traceability system could also become a key lever for attracting more investment into the industry. Traceability serves as concrete evidence of compliance with environmental, social, and governance (ESG) criteria, which international financial institutions prioritize in investment projects.

This is especially strategic as Nigeria’s palm oil sector increasingly relies on foreign investment to expand its production capacity. In December 2024, the National Palm Produce Association of Nigeria (NPPAN) announced its intention to attract $315.5 million in investments from Germany, Italy, France, Belgium, and Malaysia by 2026. The goal at the time was to diversify industrial production beyond crude palm oil and expand into other value added segments such as palm wine or biogas production from by-products, mainly for export.

The sector’s appeal to investors should also help accelerate the rollout of the National Palm Oil Development Strategy announced by the Oil Palm Growers Association of Nigeria (OPGAN) in April. As part of this five-year roadmap, OPGAN plans to replant 1.5 million hectares of oil palm across the country’s 27 producing states by 2030, aiming to revive the local industry.

Nigeria still relies on imports for about 20% of its palm oil consumption needs, which total nearly 2 million tons per year. According to the latest projections from the U.S. Department of Agriculture, local production is expected to remain flat at 1.5 million tons this year.

Stéphanas Assocle