Nigeria: FG launches national palm oil traceability framework to slash $600mln import bill

Zawya

23-07-2025

In a move to revive Nigeria's dwindling palm oil industry and curb an annual import bill exceeding $600 million, the Federal Government, in collaboration with Solidaridad Nigeria, has inaugurated the National Palm Oil Traceability Framework and an Inter-Agency Committee to drive its implementation.
Speaking at the inauguration ceremony in Abuja, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, represented by the Ministry's Permanent Secretary, Dr Marcus Ogunbiyi, described the national palm oil traceability framework as a strategic milestone toward reclaiming Nigeria's lost glory as a global palm oil powerhouse.
'In the 1960s, Nigeria accounted for over 40% of global palm oil production. Today, our share has fallen to less than 2%, producing only 1.4 million metric tons against a national demand of over 2 million metric tons annually. This gap costs us more than $600 million every year in imports,' Ogunbiyi noted.
According to him, the new traceability framework is designed to modernise the sector by ensuring every liter of palm oil produced locally is traceable, high-quality, and ethically sourced.
'Traceability is the language of the now and the future. Consumers and markets today demand to know a product's origin and whether it meets ethical, health, and environmental standards. In the agriculture of tomorrow, traceability will not be optional, it will be a passport. A product without a story of origin will be a product without a market', he stressed.
He added that the initiative aligns fully with the National Agricultural Technology and Innovation Policy (2022–2027) and the Renewed Hope Agenda of President Bola Tinubu, which places agriculture at the heart of economic diversification, food security, and rural prosperity.
Solidaridad Nigeria, one of the key implementing partners of the framework, highlighted the far-reaching impacts the initiative is expected to have on the entire value chain, from smallholder farms to processing mills and export markets.
Kene Onukwube, Program Manager at Solidaridad Nigeria, said the framework would close gaps in Nigeria's domestic arrangements and drive greater efficiency across the sector.
'Our inability to trace palm oil production to specific farms or processors has limited our productivity. With a robust traceability system, we will see more efficiency in production, processing, and marketing. This will position Nigeria to compete globally and cut down on imports significantly', Onukwube said.
He noted that Solidaridad, supported by the Kingdom of the Netherlands and the UK Foreign, Commonwealth, and Development Office, has already piloted traceability systems in four states, Akwa Ibom, Cross River, Enugu, and Kogi, demonstrating proof of concept for wider national adoption.
'These states cannot operate in isolation, so this national framework brings everyone together under a unified policy. Today's inauguration is not just a ceremony but a call for all stakeholders and agencies to understand their roles and work together toward a future-ready palm oil subsector', Onukwube said.
The newly inaugurated Inter-Agency Committee will steer the implementation process, address technical challenges, and ensure that all relevant institutions align with national goals.
Stakeholders at the event agreed that the framework would not only improve transparency and food safety but also enhance Nigeria's competitiveness in regional and global markets, while boosting income for local farmers.
With the new traceability system, Nigerian government hopes to unlock investments in climate-smart oil palm production, ensure ethical sourcing, and build a resilient industry capable of reclaiming Nigeria's place as one of the world's leading palm oil producers.
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