In a significant vote of confidence in Nigeria’s economic direction under President Bola Tinubu, Singaporean agribusiness giant, Wilmar International Ltd., has committed $70 million to expand its palm oil operations in the country.
The company recently announced the full acquisition of its palm oil joint venture with British multinational, PZ Cussons, alongside the purchase of 8,500 hectares of old rubber plantations in Cross River State.
The goal is to replant these lands with high-yield palm oil seedlings and help close Nigeria’s 1.25 million-ton annual palm oil supply gap.
According to Santosh Pillai, CEO of Wilmar’s African operations, recent policy shifts in Nigeria are reshaping the investment landscape.
“The landscape is beginning to shift,” Pillai said in a written response. “Policy changes, particularly greater stability in the naira and improved access to foreign exchange, are creating a more viable environment for long-term investment. Wilmar remains committed to driving sustainable growth in Nigeria’s palm oil sector.”
According to Bloomberg, the move comes as a broader sign that the Tinubu administration’s economic reforms may be starting to pay off.
Since assuming office in 2023, Tinubu has introduced major policy changes including the removal of petrol subsidies, a managed float of the naira, and efforts to boost government revenue. These have contributed to a steadier currency, improved dollar availability, and a modest rebound in investor confidence.
In May, global credit rating agency Moody’s upgraded Nigeria’s sovereign credit outlook from “negative” to “stable,” citing stronger fiscal prospects and progress on reforms.
Wilmar’s investment signals a shift from the caution that dominated the foreign direct investment landscape in recent years, when dollar scarcity and regulatory uncertainties forced global players like GSK, Bayer, and Sanofi to either downsize or exit Nigeria altogether.
Now, with inflation slowing and foreign exchange reserves recovering, the tide appears to be turning.
Wilmar’s expansion will focus on Nigeria’s domestic market, where palm oil is a dietary staple used in everyday dishes such as jollof rice and yam porridge. But the company is also tackling a structural challenge: ageing plantations and low productivity.
“A significant portion of Nigeria’s palm oil production still comes from small-holder farmers,” Pillai noted. “Many of these plantations are over 25–30 years old, and yields are steadily declining. Replanting with high-yielding seedlings could dramatically boost production.”
Despite efforts by previous administrations — including Central Bank-backed interventions launched in 2019 to expand palm oil farming — Nigeria has continued to trail behind palm oil-producing countries like Thailand and Colombia. Security concerns, including farmer-herder conflicts and resurgent militant activity in the northeast, have compounded the problem.
Still, Wilmar’s $70 million gamble may be an early indicator of a thawing investment climate under Tinubu — and a potential turning point for one of Nigeria’s most important agricultural sectors.
With over 200 million mouths to feed, and a growing demand for edible oils, Nigeria’s palm oil revival could offer more than just economic dividends, it could also be a step toward food security and sustainable rural development.
