West Africa’s Palm Oil Boom: Ghana & Nigeria Compete for Regional Dominance

West Africa is witnessing a new wave of growth in the palm oil sector, with Ghana and Nigeria locked in a competition for regional dominance. As global demand rises, both countries are racing to strengthen production, refine value chains, and reduce import dependence.

Nigeria, long a leader in palm oil production, is boosting output in its smallholder farms and large plantations alike. Meanwhile Ghana, with ambitious policies such as the RedGold initiative, is striving to close a large production gap and cut its massive import bill.

This article explores the latest trends, the numbers, the challenges, and the potential for both nations. It examines how Ghana and Nigeria are staking their claim in a sector that could reshape their economies—and who might come out ahead.

Palm Oil Production & Consumption in Ghana and Nigeria: The Facts

To understand the rivalry, we need to know where things currently stand.

Nigeria

• Nigeria produces about 1.4 million metric tons of palm oil annually. (IndexBox)
• It is Africa’s top producer, accounting for roughly 50-55% of Western Africa’s total palm oil output. (IndexBox)
• Yet, Nigeria still does not produce enough to meet its own domestic demand. The country consumes significantly more than that output, so it remains a major importer in addition to being a producer. (Businessday NG)

Ghana

• Ghana’s palm oil production is much lower. Recent figures put it at about 50,000 metric tons annually under current capacity. (AgriInsite)
• At the same time, Ghana’s domestic consumption is approximately 250,000 metric tons per year, meaning there is a shortfall of around 200,000 metric tons or more every year. (Latest Breaking News – News Central TV)
• Ghana has also experienced a sharp drop in exports—over 50% decline in oil‐palm exports in 2024 compared to earlier years. (The Ghana Report)

What’s Driving the Boom: Policies, Markets & Investment

Several forces are pushing both nations to expand their palm oil sectors. These include government policies, rising demand, investment in value addition, and import control.

Ghana’s Policy Push: RedGold & Import Controls

• Ghana’s government has launched the RedGold policy to reduce its palm oil import bill, which is estimated at US$2 billion annually. The goal is to strengthen local production, increase processing capacity, and reduce reliance on imported crude palm oil and refined palm oil. (BusinessGhana)
• As part of RedGold, the government plans to distribute 1.5 million oil palm seedlings to farmers and encourage out-grower plantation schemes. (BusinessGhana)
• Ghana also introduced import permit requirements for palm oil from mid-July 2025, meaning importers must register and obtain permits before bringing in crude palm oil, crude palm olein or refined palm olein. The aim is to regulate volume and quality of imports. (Ecofin Agency)

Nigeria’s Position: Large-Scale Production & Value Chain Potential

• Nigeria already has a larger production base. Many farmers are smallholders, but there are also large plantations and integrated companies. (Socfin)
• Companies such as Presco Plc are reaping high profits: for example, Presco’s after-tax profits rose substantially in recent years as the naira weakened and local demand stayed strong. (UkrAgroConsult)
• In addition to producing for domestic consumption, Nigeria is increasingly looking at export opportunities and value addition (refining, fractionation, packaging) to capture more value. (Businessday NG)

Regional Competition: Who Has the Edge & Why

While both countries have advantages, there are key differences that could determine who leads in the coming years.

Real-Life Examples: Stories from the Ground

Numbers and policies tell part of the story, but real farmers show what is possible—and what the challenges are.

Case Study: Nigeria – Presco Plc & Smallholders

• In Nigeria, Presco Plc, an agro-industrial group, has benefited from rising local demand and favourable pricing. In recent reporting periods, the company saw revenue and profit increase markedly. (UkrAgroConsult)
• Many smallholders in states like Ondo, Cross River, Edo are beginning to adopt better seedlings, use improved fertilizer, and try to gain access to mills rather than selling to middlemen. However, inconsistent infrastructure (roads, power) and fluctuating input prices remain obstacles.

Case Study: Ghana – Smallholder Farmers & Seedling Distribution

• In Ghana, farmers around Techiman, Bono East, and Ashanti regions have reported accessing government programs distributing oil palm seedlings through the RedGold and the broader Tree Crops Diversification Project. (The Business & Financial Times)
• Some have begun participating in out-grower schemes where larger companies or investor groups provide seedlings, technical support, and purchase agreements, reducing risk. But many farmers still lack access to processing mills, and transport to market remains costly, especially in remote areas.

Challenges Facing Both Countries

While the boom is real, there are serious barriers that both Ghana and Nigeria must address.

1. Demand outstripping supply

• • Ghana’s shortfall of ~200,000 metric tons annually means many consumers depend on imports. (Latest Breaking News – News Central TV)
  • Nigeria, though producing more, still cannot satisfy its growing internal demand. Failure to scale fast enough can cause price volatility and import leakage.

1. Import-driven competition

• • Cheap imports of palm oil (often without strict regulation or with lower quality) undermine local producers trying to compete on price or quality. Ghana has introduced import permits to help address this. (Ecofin Agency)
  • Nigeria also faces cheaper oils in some markets, and smuggling or trade misreporting sometimes complicates enforcement of standards.

1. Quality, standards, and traceability
   • Meeting international buyer expectations (for refined oil, hygiene, sustainability) requires investments in processing, certification, and sometimes traceability systems.
2. Infrastructure gaps
   • Poor rural roads, difficulty transporting heavy loads of fresh fruit bunches (FFBs) to mills, unreliable power supply, lack of cold storage or intermediate storage, water for processing.
3. Access to finance and inputs
   • Farmers need better access to quality seedlings, fertilizer, agrochemicals, training, and credit. High interest rates, weak supply chains raise costs.
4. Environmental concerns
   • Land use change, deforestation, soil degradation and sustainability are pressing issues. International buyers increasingly demand sustainable sourcing, which increases cost for producers.

What Governments & Industry Are Doing

Both nations have launched or expanded interventions to overcome these challenges.

Ghana’s Plans

• • RedGold Policy is tackling multiple fronts: boosting local production, distributing seedlings, encouraging out-grower models, boosting processing capacity, cutting import bills. (BusinessGhana)
  • The Tree Crops Diversification Project (GTCDP) supports oil palm along with other tree crops to diversify incomes and reduce risk. (The Business & Financial Times)
  • Import permit system (from July 2025) is a regulatory measure to control quantity, quality, and origin of incoming oils. (Ecofin Agency)

Nigeria’s Strategy

• • Nigeria already has large players and is focusing more on value addition: mills, processing, and refining. (Businessday NG)
  • Some companies are expanding operations. There is also attention to boosting smallholders, improving access to inputs, though many report that policy support is uneven.

Comparative Outlook: Who Might Pull Ahead?

Looking at current trends, resources, and challenges, some likely scenarios emerge:

Scenario A: Nigeria Maintains Lead

• With its large production base, scale of operations, and existing supply, Nigeria is in a strong position to continue dominating regional supply.
• If it improves infrastructure, reduces import dependence, and improves value addition, Nigeria could become a major exporter of refined palm oil, not just crude or semi-processed types.

Scenario B: Ghana Closes the Gap

• If Ghana successfully implements RedGold, invests in smallholder support, improves processing capacity, and stabilises policy, it might significantly reduce its import bill and capture more of domestic demand.
• Ghana can also become more competitive in regional trade (exports to neighbouring countries) and possibly attract foreign investment for processing and refining plants.

Risks That Could Slow Both

• Currency fluctuations, inflation, and high cost of inputs.
• Environmental regulations globally tightening (buyers demanding sustainability, traceability).
• Social conflicts, land rights issues.
• Infrastructure and logistic bottlenecks.

Conclusion

West Africa’s palm oil boom is far from a fairytale—it is real, complex, and full of promise. Nigeria currently holds the upper hand in terms of sheer output, existing plantations, and economies of scale. Ghana, however, is strategically positioning itself to close the gap: through ambitious policies, seedling distribution, import regulation, and a push for value-addition. Which country wins regional dominance may not be clear yet, but the competition is pushing both forward. For farmers, processors, investors, and governments, the task is to seize the moment: close supply gaps, ensure sustainable practices, improve infrastructure, and build value chains that uplift local communities.

If either Ghana or Nigeria—or ideally both—can get policy, investment, and execution aligned, the palm oil sector could become one of the strongest pillars of West Africa’s agro-industrial future.