Palm nuts and kernels market in Nigeria

Earlier Report Observations

The Nigerian palm nuts and kernels market entered a period of sustained growth starting in 2018, fundamentally shaped by a government prohibition on importing bulk vegetable oils. This policy was designed to encourage local production and led to significant private sector investments in new and expanded oil palm plantations, supported by federal and state programs for smallholders. These initiatives directly increased domestic supply, setting a foundation for market expansion.

High demand for palm kernel oil from local refineries and soap manufacturers provided a consistent market pull in the following years. This demand was met by continued investments from state-owned and private companies into processing facilities and plantation development. The market's maturation was further aided by the emergence of specialized consultancy services for new entrants and the adoption of advanced extraction and refining machinery, which improved production efficiency and product quality.

From 2020 through 2023, the market volume maintained its upward trajectory, reaching 11 570 thousand tons in 2023. The absence of new major regulatory shifts did not hinder growth, as the established drivers of import substitution, strong industrial demand, and ongoing enhancements in production processes ensured consistent annual increases in market volume.

Production palm nuts and kernels in Nigeria

In kind, 2017-2020, K t

From 2017 to 2020, Nigeria ranked as the world's fourth-largest producer of palm nuts and kernels.

Top producers of palm nuts and kernels, 2017-2020

World map of production of palm nuts and kernels, 2017-2020

Nigeria's production of palm nuts and kernels grew for the third year in a row. In 2020, the country produced 10 000 thousand tonnes, marking a 2.1% increase from the previous year. Over the 2017-2020 period, production rose by 9.9%, with an average annual growth rate of 3.2%.

Annual dynamics of production in Nigeria in kind, 2017-2020, K t

Exports palm nuts and kernels from Nigeria

Exports in kind, t

The market showed significant volatility during these years. The lowest export volume occurred in 2017, while the highest was in 2020, with a peak-to-trough ratio of 749 times. In 2020, Nigeria exported 6 694 tonnes of palm nuts and kernels, which represents a dramatic 736.8% surge compared to 2019. The largest decline was recorded in 2019 at 80.2%, while the biggest increase happened in 2018, reaching 45 228.1%.

Annual dynamics of product's exports from Nigeria in kind, 2017-2020, t

Between 2017 and 2020, China, Portugal, and India were the top destinations for Nigeria's palm nuts and kernels exports by volume. China accounted for 29.9% of exports, Portugal for 28.8%, and India for 12.7%. Together, these three countries made up 71.4% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Nigeria in kind, 2017-2020

Exports in value, K $ US

The export market experienced notable volatility over this period. The lowest value was recorded in 2017, with exports peaking in 2020, showing a 190-fold difference. In 2020, Nigeria's palm nuts and kernels exports were valued at 6 069 thousand US dollars, reflecting a sharp increase of 6 698.6% from the previous year. The largest decline occurred in 2019, dropping by 79.3%.

Annual dynamics of product's exports from Nigeria in value, 2017-2020, K $ US

From 2017 to 2020, China, Japan, and India were the key markets for Nigeria's palm nuts and kernels exports by value. China led with 54.3% of export value, followed by Japan at 12.4%, and India at 10.1%. Collectively, these three countries accounted for 76.8% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Nigeria in value, 2017-2020

Imports palm nuts and kernels to Nigeria

Imports in kind, t

Import volumes displayed irregular patterns, pointing to a volatile market. The lowest point was in 2017, with a peak in 2018, resulting in a 322-fold amplitude. In 2020, Nigeria imported 3 tonnes of palm nuts and kernels, a 98.5% year-on-year decrease. The maximum volume was recorded in 2018 at 298 tonnes, which also saw the largest increase of 32 080.4%.

Annual dynamics of product's imports to Nigeria in kind, 2017-2020, t

During the 2017-2020 period, Sierra Leone and Benin were the primary sources for Nigeria's palm nuts and kernels imports by volume, while other markets played a smaller role.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Nigeria in kind, 2017-2020

Imports in value, K $ US

Nigeria's imports of palm nuts and kernels by value grew for the third consecutive year. In 2020, imports amounted to 805 thousand US dollars, a sharp 75.6% rise compared to the previous year. Between 2017 and 2020, imports surged by 47 062.4%, translating to an annualized growth rate of 678.4%.

Annual dynamics of product's imports to Nigeria in value, 2017-2020, K $ US

From 2017 to 2020, Benin and Indonesia remained the main suppliers of palm nuts and kernels to Nigeria by value, together holding a 95.4% share of total imports. The remaining imports were spread across other countries in a fragmented manner.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Nigeria in value, 2017-2020