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Recently, the Federal Government launched the National Palm Oil Traceability System (NaPOTS) Framework and formed an Inter-Agency Committee of 16 members to oversee its implementation.
In the 1960s, Nigeria accounted for over 40 percent of global palm oil production. Today, the country’s share has fallen to less than 2 percent, producing only 1.4 million metric tons against a national demand of over 2 million metric tons annually. This gap costs Nigeria more than $600 million every year in imports.
The inauguration of the National Palm Oil Traceability Framework is more than a policy achievement—it is a national economic imperative and a social contract with farmers, processors, traders, and the future generations.
This laudable framework will position Nigeria as a global leader in sustainable palm oil production—renowned not just for the quantity produced, but for the values the nation upholds: transparency, equity, and environmental stewardship.
NaPOTS aims to improve quality management, strengthen sustainability, support climate-smart initiatives, and position Nigeria’s palm oil industry competitively both domestically and internationally. This move among others revive Nigeria’s dwindling palm oil industry and curb an annual import bill exceeding $600 million.
Strategic position of oil palm industry…
The oil palm industry occupies a very strategic position in global food markets and economies, as its derivative products and universal use in various aspects of human life.
The sustainably increasing market for oil palm industry, job creation and poverty alleviation potentials amongst others, underscores the interest of various countries in supporting its orderly growth and development.
Historically Nigeria was a lead exporter of crude palm oil in the 1960s. It is currently the largest consumer of palm oil in Africa (World bank, 2018). While it consumed 3 million MT of fats and oil in 2018, its output of fats and oils stood at 1.02 million MT and this translated to a gap of 1.92 million MT.
The Nigerian palm oil sector is a critical contributor to the nation’s agribusiness landscape; however, challenges remain in ensuring sustainable production, enhanced market access, and effective environmental management.
The total palm oil output gap to bring Nigeria to 3 position in global production would be about 4 million MT that is to surpass Thailand’s 2.7 million MT and this will require that Nigeria produces 3.38 million MT additional palm oil. At 3.5 MT per hectare, Nigeria will need to cultivate about additional 965,714.30 hectares by 2029.
Understanding National Palm Oil Traceability System (NaPOTS)
In alignment with the National Initiative for Sustainable Climate-Smart Oil Palm Smallholders (NISCOPS) programme, the National Palm Oil Traceability System (NaPOTS) Interministerial Committee has been established to coordinate interagency efforts and in alignment the NATIP agenda, drive the process of a dialogue on the development and implementation of a robust traceability policy framework for the country.
Purpose of the 16-member Inter-Agency Committee
The successful launch of NaPOTS requires strong institutional collaboration. The 16-member Committee is mandated to provide strategic oversight, policy guidance, and coordination among relevant Ministries, Departments, and Agencies (MDAs) and key stakeholders.
This committee will serve as the driving force behind the traceability system, fostering coordination across: federal and state government agencies, private sector actors, farmers’ cooperatives and processors, market associations, development partners and donors, etc.
Its purpose is to enhance traceability within the palm oil supply chain, ensure compliance with sustainability standards, and support the integration of climate-smart agricultural practices that safeguard both economic and ecological interests. They are also to develop the Traceability Framework which involves establishing a comprehensive, national palm oil traceability system that monitors production, certification, value-chain and supply-chain data. Their role in policy coordination and regulatory alignment involves formulating and harmonising policies among MDAs to support traceability, sustainable production, and market access for smallholder farmers and processors.
The 16-member committee is also expected to ensure that robust data collection, analysis, and reporting mechanisms are in place to inform interagency policy decisions and build consumer trust. They will also among others facilitate multi-stakeholder dialogue, including with industry, NGOs, and research institutions, to drive collaborative solutions and continuous improvement.
Here’s what the Minister said…
Abubakar Kyari, Minister of Agriculture and Food Security while speaking during the inauguration of the National Palm Oil Traceability Framework and Interagency Committee said the occasion marks a significant milestone in Nigeria’s agricultural transformation journey.
“It aligns closely with the National Agricultural Technology and Innovation Policy (NATIP) of the Federal Ministry of Agriculture and Food Security — a policy that champions innovation, sustainability, and market-driven value chains.
“This traceability framework stands as a testament to our unwavering commitment to these principles. Under the visionary leadership of President Bola Ahmed Tinubu, this administration is taking bold steps to strengthen food safety, ensure market transparency, and build economic resilience.
“The establishment of a national traceability system for palm oil is a clear demonstration of our determination to modernize agricultural value chains, enhance global competitiveness, and promote responsible production and sourcing throughout Nigeria’s oil palm sector,” he noted. The minister was represented at the event by Marcus Ogunbiyi, a Permanent Secretary in the ministry.
Kyari further said that “As Nigeria continues its journey toward self-sufficiency in palm oil production, it is no longer sufficient to focus solely on increasing output. We must now ensure that we produce responsibly, transparently, and sustainably.
“A strong national traceability system is not a luxury—it is a necessity. Its importance cannot be overstated, for several key reasons: Meeting Global Market Demands:
The international market is increasingly shaped by sustainability and ethical sourcing standards. Without a verifiable traceability system, Nigerian palm oil risks being excluded from high-value export destinations—especially in Europe and North America—where buyers demand clear evidence of deforestation-free and socially responsible production”.
The Minister also noted that, “Traceability is essential for boosting consumer confidence and upholding product integrity. It helps eliminate adulteration, enforces compliance with national and international quality benchmarks, and strengthens the competitiveness of our palm oil in key industries such as food processing, pharmaceuticals, and cosmetics.
“With smallholders accounting for over 80 percent of Nigeria’s palm oil production, a traceability framework is a critical bridge to formal markets. It facilitates access to premium pricing, fair trade opportunities, and financial services—thereby improving rural livelihoods, promoting inclusion, and reducing poverty,” he said.
Economic and industrial implications…
The broader economic benefits of palm oil traceability are far-reaching and transformative, which the Minister noted will among other help boost GDP and export revenue.
“A traceable palm oil supply chain strengthens Nigeria’s competitiveness in global markets, attracting investment and increasing non-oil export earnings.
“Industries that depend on palm oil can expand with confidence, assured of a consistent supply of high-quality, traceable raw materials.
“By establishing a transparent, accountable supply chain from farm to factory, traceability helps curb environmental degradation, prevent post-harvest losses, and reduce unregulated trade that drains government revenue”, Kyari added.
OPGAN to revamp industry by replanting 1.5 million hectares of land ….
Joe Onyiuke, president, Oil Palm Growers Association of Nigeria (OPGAN), a member of the National Interagency Committee on Palm Oil Traceability—a multi-stakeholder body mandated to design and oversee the implementation of Nigeria’s Palm Oil Traceability Roadmap noted their readiness to achieve this laudable objective.
Recently, the Oil Palm Growers Association of Nigeria (OPGAN) disclosed plans to revamp the industry by replanting 1.5 million hectares of land over the next 5 years across the 27 major oil palm producing States in Nigeria.
This is contained in the Oil Palm Development Strategy for Nigeria 2024 – 2029 which OPGAN developed to propel Nigeria’s oil palm industry from its current 5th position to the 3rd rank in global palm oil output.
The plan will also revitalize and elevate Nigeria’s oil palm industry, positioning it as a global 3rd leader through proper planning, investments, sustainable practices, innovative technologies and inclusive growth strategies
The 5-year Oil Palm Development Strategy for Nigeria is the frst time in Nigeria that a commodity organisation is formulating a comprehensive strategic plan tailored to its subsector’s unique needs and aspirations, Onyiuke told BusinessDay.
He said, “In the annals of Nigeria’s agricultural landscape, the oil palm industry stands as a cornerstone of economic prosperity and agricultural advancement. Yet, amidst its significant contributions, there exists a palpable gap in the strategic framework for its sustainable development”.
“As the Oil Palm Growers Association, we have embarked on a journey to bridge this gap and propel our industry into a new era of growth and resilience. This document represents more than just a strategy; it embodies a paradigm shift, a game-changing blueprint meticulously crafted to address the shortcomings of the past, set ambitious yet achievable targets, and chart a course towards a vibrant and sustainable oil palm sector,” he added.
Onyiuke further noted that the Oil Palm Development Strategy for Nigeria 2024 – 2029 “delineates the challenges that have impeded our progress, from inefficient land use practices to market volatility, and presents actionable recommendations and modalities to surmount them.
“But our vision as an organisation cannot materialise in isolation. We call upon all stakeholders—government agencies, private enterprises, research institutions, and local communities—to embrace this strategy fervently. It is not merely in the
interest of Nigeria as a nation, but in the enlightened self-interest of each stakeholder. Together, let us sow the seeds of prosperity, cultivate innovation, and harvest the fruits of a revitalised oil palm industry for the betterment of our nationand our future generations,” he noted.
Iheanyi Nwachukwu
Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos.
Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).
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