Palm Oil Development in Nigeria

One of the most important economic activities in Nigeria is the processing of palm fruits, which are used to produce palm kernel and palm oil.

Since 2011-2012, Nigeria's palm oil consumption has been relatively stable, with the country consuming approximately 1.405 million metric tons of palm oil annually.

Palm oil and palm kernel used to account for 20% of Nigeria's total exports.

The domestic price of palm oil in Nigeria is almost the same as the import price of the product, which includes a 35% duty.

The traditional market for Nigerian palm oil is typically dominated by small-scale producers in the industry, which account for more than 70% of total local production, totaling about 650,000 metric tons. The reason palm oil is so popular is  its high oil yield, which is more than 10 times that of palm fruit compared to sunflower seeds or soybeans.

After a synchronized rise in global palm oil production and demand from 1964-2010, palm oil demand in the global market has begun to grow faster than supply. Overall, the global palm oil market is now likely to be short by 150,000 metric tons per year.

However, the industry's market share has been declining since then due to overexploitation and reliance on traditional production methods. Now, to meet domestic demand, Nigeria must even import more than 500,000 tons of palm oil per year. Since 2001, Nigeria has banned the entry of crude oil in bulk and refined vegetable oil. With the establishment of agricultural development plans and innovative agricultural practice systems, there is no doubt that Nigeria's palm oil industry will embark on a new phase of development.

However, one of the challenges plaguing the development of Nigeria's palm oil industry is the inefficiency of its processing technology, where post-production losses of palm fruits can be as high as 50%.

Therefore, Nigerian palm oil producers are in dire need of perfect palm oil production line equipment.

RAYONE oil press machinery has 40 years of experience in designing and producing edible oil production machinery, providing professional and complete oil extraction systems for edible oil traders worldwide, and also including production support for various agricultural by-products. Partners are concentrated in Africa, India, Middle East and South East Asia.