The Lagos Chamber of Commerce and Industry (LCCI) has expressed concern over rising palm oil prices, warning that Nigeria spends about $550 million annually to bridge its palm oil supply deficit amid growing import dependence and new export restrictions by Indonesia.
Speaking at the LCCI 2026 Third Quarter Economic Outlook Press Conference on Wednesday, the chamber’s President, Leye Kupoluyi, said recent policy changes by Indonesia—the world’s largest palm oil exporter—could have significant implications for Nigeria’s economy.
Kupoluyi explained that Nigeria consumes between 2.5 million and 3 million tonnes of palm oil annually but produces only about 1.4 million tonnes, leaving a substantial supply gap that has increased the country’s reliance on imports.
According to him, Indonesia has introduced stricter export controls and centralised policies for strategic commodities, a development expected to affect the availability and cost of palm oil imports into Nigeria.
He noted that the widening supply gap, coupled with higher export levies imposed by Indonesia, has pushed up local palm oil prices and increased Nigeria’s import bill.
Kupoluyi said the country spends approximately $550 million each year to offset the production shortfall, adding that recent government data showed ₦23 billion was spent on palm oil imports from neighbouring West African countries within a single quarter.
He warned that supply constraints and rising international prices are increasing production costs for manufacturers, particularly those in the food and cosmetics industries, with the potential to further fuel inflation.
According to the LCCI president, while higher prices present challenges for manufacturers, they also create an opportunity for local farmers and agribusinesses to expand production and reduce Nigeria’s dependence on imports.
He urged the Federal Government to take advantage of current market conditions by introducing targeted incentives for palm oil producers and agribusinesses to boost domestic output and strengthen the sector.
Kupoluyi also reaffirmed the chamber’s commitment to engaging with government agencies and other stakeholders on policies aimed at improving the business environment and promoting sustainable economic growth.