PALMOILMAGAZINE, ABUJA – Nigeria’s vegetable oil industry has urged the government to approach Malaysia’s offer to support the country’s palm oil sector with caution, warning that closer cooperation should not lead to greater reliance on Malaysian palm oil imports.
Francis Ikoro, National President of the Vegetable/Edible Oil Producers Association of Nigeria (VEOPAN), said international partnerships should primarily strengthen Nigeria’s domestic production capacity rather than expand export markets for supplying countries.
His remarks came after the Malaysian Palm Oil Council (MPOC) expressed its willingness to assist Nigeria’s palm oil industry through technology transfer, sustainability standards, and enhanced industrial collaboration. At the same time, MPOC has identified Nigeria as a strategic market with significant potential to absorb higher Malaysian palm oil exports.
Also Read: GAPKI Strengthens Indonesia–Russia Vegetable Oil Cooperation Through Strategic Agreement
According to Ikoro, Malaysia’s proposal reflects its long-term strategy to expand export markets after decades of investment in research, mechanization, and supportive government policies that have helped establish the country as one of the world’s leading palm oil exporters.
As quoted by Palmoilmagazine.com from BusinessDay on Tuesday (July 13, 2026), Ikoro stressed that Nigeria’s biggest challenge is not a lack of expertise in oil palm cultivation. West Africa, including Nigeria, is the crop’s native region and was once among the world’s leading palm oil producers before being overtaken by Malaysia and Indonesia through sustained investment, technological advancement, and consistent policy support.
VEOPAN said Nigeria’s palm oil industry is currently constrained by structural challenges, including inconsistent government policies, inadequate infrastructure, widespread palm oil smuggling, limited access to financing, the use of low-yield planting materials, and insufficient protection for domestic producers.
Also Read: MPOB: Palm Oil Stocks Rise 4.78% as Production Outpaces Export Growth
The association therefore called for international partnerships that deliver tangible benefits to Nigeria’s industry. It proposed that cooperation focus on establishing certified seed production centers, investing in plantations and processing facilities, developing local manufacturing of palm oil processing equipment, strengthening the capacity of researchers and extension officers, and promoting joint research with Nigerian universities.
VEOPAN also urged the government to require local content provisions in all partnership projects to ensure technology transfer genuinely strengthens domestic industrial capabilities rather than simply creating new export opportunities for Malaysian products.
The association warned that Nigeria’s vegetable oil industry is already under pressure from legal imports, cross-border smuggling, and shifting fiscal policies. Greater dependence on imported palm oil, it said, could discourage investment in domestic plantations, reduce processing plant utilization, weaken rural employment, and place additional pressure on the country’s foreign exchange reserves.
Also Read: India’s Palm Oil Imports Hit 14-Month Low, Raising Concerns Over Global CPO Prices
According to VEOPAN, every tonne of imported palm oil represents production that could otherwise be supplied by Nigerian farmers, processed by local industries, and generate greater value for the national economy.
The association believes Nigeria has strong potential to regain its position as one of the world’s leading palm oil producers, supported by abundant land resources, a favorable tropical climate, a large domestic market, and a growing productive workforce.
To achieve this, VEOPAN urged the government to accelerate plantation expansion, strengthen support for independent smallholders, improve access to affordable financing, protect domestic producers from unfair import practices, and increase investment in research and the development of high-yield oil palm varieties.
While reaffirming that international cooperation remains valuable, VEOPAN emphasized that such partnerships should be designed to build national production capacity. The association concluded that the development of strategic industries, including palm oil, must remain guided by Nigeria’s national economic interests to create a more self-reliant and globally competitive vegetable oil industry. (P2)
