…as supply struggles to keep pace
Nigeria’s two biggest listed palm oil producers are committing billions of naira to plantations, mills, and processing facilities despite already posting record earnings, wagering that Africa’s largest food market will remain structurally short of edible oil for years to come.
Rather than distributing the windfall from surging crude palm oil prices, Presco Plc and Okomu Oil Palm Plc, which posted a combined profit of N72.86 billion in the first quarter of 2026, compared to N69.32 billion, are recycling much of their cash into expanding production, reflecting growing confidence that domestic consumption will continue to outstrip local supply despite years of government efforts to revive the industry.
The investment drive comes as Nigeria, Africa’s most populous country, consumes an estimated 2.1 million to 2.2 million tonnes of edible oil annually but produces only about 1.9 million tonnes, leaving a supply gap that is filled largely through imports from countries such as Malaysia and Côte d’Ivoire, estimated at more than $600 million each year, which is worsening pressure on scarce foreign exchange reserves.
For investors, the latest quarterly results suggest the companies are positioning themselves not simply for another year of bumper profits but for a multi-year expansion cycle built around one of Nigeria’s most persistent agricultural deficits.
