NIGERIA — Nigeria has launched a National Palm Oil Traceability Framework alongside a 16-member Inter-Agency Committee, aiming to strengthen domestic production and cut over US$600 million in annual palm oil imports.
Speaking at the ceremony in Abuja, Minister of Agriculture and Food Security Senator Abubakar Kyari, represented by the ministry’s Permanent Secretary, Dr. Marcus Ogunbiyi, outlined the strategic importance of the framework.
According to Kyari, the traceability initiative is a direct response to industry challenges such as adulteration, inefficient processing practices, and limited export capacity.
Ogunbiyi noted that while Nigeria was once responsible for more than 40% of the world’s palm oil output in the 1960s, current production has declined to less than 2%, with a national output of 1.4 million metric tons against a demand exceeding 2 million metric tons annually.
The resulting deficit has driven a surge in imports costing over US$600 million (NGN 930 billion) per year.
Framework overview and alignment with national policies
The newly launched National Palm Oil Traceability System (NaPOTS) aligns with the National Agricultural Technology and Innovation Policy (2022–2027) and operates under the National Initiative for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS).
Its objectives include the establishment of a unified national system that tracks palm oil production, monitors compliance with quality standards, and integrates climate-resilient practices.
“Traceability is no longer a luxury but a requirement,” Ogunbiyi said.
“Markets increasingly demand verified sourcing information. Without traceability, Nigerian palm oil will face barriers to export, especially in regions like the EU and North America.”
The traceability system aims to enhance transparency throughout the supply chain from smallholder farms to processing mills while ensuring ethical sourcing and facilitating market access.
Pilot programs and stakeholder involvement
Solidaridad Nigeria, a key implementation partner supported by the Kingdom of the Netherlands and the UK Foreign, Commonwealth and Development Office, has already piloted traceability projects in four states: Akwa Ibom, Cross River, Enugu, and Kogi.
These pilot initiatives demonstrated proof of concept and laid the foundation for a nationwide rollout.
Program Manager for Oil Palm at Solidaridad Nigeria, Kenechukwu Onukwube, emphasized that inefficiencies in Nigeria’s production and processing systems stem largely from an inability to trace product origin.
“The new framework closes this gap and introduces mechanisms for better oversight, more efficient marketing, and quality assurance,” he said.
The 16-member Inter-Agency Committee will guide the framework’s implementation, offering oversight, policy alignment, and coordination between federal and state government agencies, private sector actors, farmer cooperatives, and development partners.
Economic and industrial implications
Beyond food applications, traceable palm oil is also essential to Nigeria’s pharmaceutical and cosmetics industries, which rely on consistent quality and compliance with global benchmarks.
Kyari stated that the framework provides a pathway to improve Nigeria’s non-oil exports and attract investment into agribusiness.
With over 80% of Nigeria’s palm oil produced by smallholder farmers, the framework also serves as a mechanism for improving farmer incomes and formalizing their participation in structured markets.
“A traceability framework bridges the gap between informal production and formal markets, enabling smallholders to access premium pricing and financial services,” Kyari noted.
Industry mobilization and complementary initiatives
The Oil Palm Growers Association of Nigeria (OPGAN), also represented on the Committee, announced plans to replant 1.5 million hectares of oil palm over five years as part of its 2024–2029 Oil Palm Development Strategy.
The strategy aims to move Nigeria from the fifth to the third largest global producer by 2029, surpassing Thailand.
Separately, the Plantation Owners Forum of Nigeria (POFON) disclosed plans to stabilize palm oil prices across peak and lean seasons by expanding plantation capacities and improving supply chain logistics.
According to POFON Chairman Emmanuel Ibru, efforts are already underway to address seasonal price volatility and support national economic objectives.
The Ministry of Agriculture has emphasized that the traceability roadmap will include stakeholder consultations, robust data monitoring, and interagency coordination.
The Committee is expected to propose guidelines that harmonize certification protocols, enforce compliance, and ensure that traceable palm oil meets both domestic and export requirements.
The inauguration of NaPOTS marks a formal step toward repositioning Nigeria’s palm oil sector to meet modern demands for transparency, environmental stewardship, and responsible sourcing, objectives increasingly tied to global trade access and consumer confidence.
More updates are expected as the Committee begins work on developing the national Traceability Roadmap.