From 45% to 2%: How Nigeria lost its global palm oil production share to Asia

  • Indonesia dominated with 46.8M tonnes in 2022, up from 145.7 ktonnes in 1961
  • Malaysia was the second-largest producer in 2022 with 18.5M tonnes
  • Global production has increased from under 2M tonnes (1961) to over 75M tonnes (2022)
  • Thailand, Colombia, and Guatemala have emerged as major producers in recent decades
  • Nigeria was historically significant, but has been overtaken by Asian producers

In 1961, Nigeria dominated the global palm oil market with 669 ktonnes, far ahead of Malaysia’s 95 ktonnes and Indonesia’s ktonnes, accounting for over 45% of the world's output. But while Nigeria relaxed, Malaysia and Indonesia invested in large plantations, subsidies, and technology, sparking an agricultural revolution.

By 1980, Malaysia had surged to 2.57M tonnes, Indonesia to 800 ktonnes, while Nigeria stagnated at around 700 ktonnes due to the oil boom, weak infrastructure, and political instability. By 2000, Indonesia reached 7M tonnes, then 21.9M tonnes by 2010, and 46.8 M tonnes by 2022, recording a 321-fold increase. Malaysia followed with 18.5M tonnes. Together, they now account for 87% of the global supply.

Nigeria, meanwhile, grew only to 1.42M tonnes by 2022, barely double its 1961 numbers, despite ideal conditions. New entrants like Thailand (3.2M tonnes), Colombia (1.76M tonnes), and Guatemala (940 ktonnes) have overtaken it.

Today, Africa contributes less than 5% of global production, despite holding 20% of the world's suitable land.

Source:

Food and Agriculture organization of the UN

Period:

1961-2022
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