FG inaugurates committee, traceability framework to cut $600m palm oil imports

In a strategic move to revitalise Nigeria’s palm oil sector and reduce over $600 million spent annually on imports, the Federal Government has launched the National Palm Oil Traceability Framework and inaugurated an Interagency Committee to drive its implementation.

The initiative, introduced under the National Initiative for Sustainable and Climate Smart Oil Palm Smallholders (NISCOPS), is in collaboration with development partners Solidaridad and IDH. It seeks to enhance local production, enforce ethical sourcing, and establish a transparent and accountable palm oil supply chain.

Speaking during the inauguration in Abuja, the Minister of Agriculture and Food Security, Abubakar Kyari represented by the Permanent Secretary, Dr. Marcus Ogunbiyi described the framework as a critical step towards restoring Nigeria’s former global prominence in palm oil production.

“In the 1960s, Nigeria contributed over 40 percent of global palm oil supply. Today, we produce only about 1.4 million metric tonnes annually, far short of the over two million metric tonnes demanded domestically,” Ogunbiyi noted.

He added that the National Palm Oil Traceability Framework would serve as a vital tool to improve food safety, market competitiveness, and ensure sustainable and ethical production practices. The programme aligns with the National Agricultural Technology and Innovation Policy (NATIP) and President Bola Tinubu’s Renewed Hope Agenda, which prioritises agriculture as a driver of economic diversification and food security.

According to the ministry, the newly inaugurated interagency committee will coordinate federal and state-level actors, private sector stakeholders, processors, and farmers’ cooperatives to develop and execute a national roadmap for the sector.

“The establishment of a national traceability system is a bold step to modernise agricultural value chains and reinforce responsible sourcing throughout Nigeria’s palm oil industry,” the minister stated.

Programme Manager of Solidaridad Nigeria, Kene Onukwube, also addressed the gathering, stressing that the framework brings both an operational tracking system and a policy structure for its implementation.

He noted that Solidaridad has piloted successful traceability models in Akwa Ibom, Cross River, Enugu, and Kogi States, with support from the Kingdom of the Netherlands and the UK’s Foreign, Commonwealth and Development Office (FCDO).

“With traceability, we expect improved production efficiency and transparency. One major challenge has been the lack of a system to trace local outputs back to producers. This reform addresses that gap,” Onukwube said.

He affirmed that Solidaridad will continue providing technical assistance to the interagency committee, aligning stakeholders, and identifying both bottlenecks and opportunities across the value chain.