Afrinvest West Africa’s recent report indicates that Nigeria’s top palm oil producers are set to achieve unprecedented profits in 2025.
The projected profit before tax (PBT) for Okomu Oil Palm Plc and Presco Plc, the two major players in the Nigerian palm oil market, is expected to increase by 38.8% year-on-year, reaching N231.5 billion. The report also forecasts a 36.8% rise in profit after tax (PAT), estimating it to reach N161 billion.
This optimistic outlook is based on the anticipation that global crude palm oil (CPO) prices will climb to $1,200 per metric tonne (MT) by the end of 2025, up from the current $900/MT. This price increase is fueled by supply chain disruptions, growing demand for biodiesel in Southeast Asia, and a potential easing of trade tensions between major economic powers.
Afrinvest’s 2025 Oil Palm Sector Update suggests that Nigeria is well-positioned to capitalize on these elevated international prices and address domestic supply shortages, especially as Indonesia and Malaysia increase their domestic biofuel mandates.
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In 2024, local palm oil prices saw a significant surge, rising 56.8% year-on-year to N420,906 per MT. This increase reflects global price trends, the devaluation of the naira, and rising costs of imported inputs. Consequently, industry revenue soared by an impressive 90.2% to a record N337.7 billion, with Presco contributing N207.5 billion and Okomu contributing N130.2 billion.
Despite challenges such as inflationary pressures, increased production costs, a 46.2% naira depreciation, and higher energy expenses, profit margins expanded. This resilience was attributed to higher production volumes, optimized capacity, and improved operational efficiency at Presco and Okomu.
