Wilmar investment boosts Nigeria palm oil sector with \$70m expansion, marking renewed investor confidence and a shift in foreign direct investment momentum
Wilmar investment boosts Nigeria as the Singaporean agribusiness giant commits \$70 million to expand palm oil operations across the country.
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This strategic move follows the complete takeover of its joint venture with British multinational PZ Cussons and the acquisition of 8,500 hectares of aged rubber plantations in Cross River State, which will be replanted with high-yield palm seedlings.
The development signals renewed investor confidence in Nigeria’s economy, driven by reforms introduced under President Bola Tinubu.
Wilmar’s decision to deepen its presence in the country comes as global interest in Nigeria’s agricultural sector begins to recover after years of hesitation caused by currency instability and regulatory unpredictability.
According to Santosh Pillai, CEO of Wilmar’s African operations, policy reforms have begun to reshape the country’s investment climate.
“Policy changes, particularly greater stability in the naira and improved access to foreign exchange, are creating a more viable environment,” he stated. “Wilmar remains committed to driving sustainable growth in Nigeria’s palm oil sector.”
Wilmar’s expansion aims to address Nigeria’s 1.25 million-ton annual palm oil supply gap, focusing primarily on the domestic market where palm oil remains essential in many households.
Staple dishes such as jollof rice and yam porridge rely heavily on palm oil, making it both a cultural and nutritional mainstay.
Since President Tinubu took office in 2023, key policy changes such as the removal of petrol subsidies and a managed float of the naira have contributed to a more stable economic outlook.
These measures have improved dollar liquidity and helped restore confidence in Nigeria’s ability to attract foreign direct investment.
The improved investment sentiment was further validated in May when global credit rating agency Moody’s upgraded Nigeria’s credit outlook from “negative” to “stable,” citing improved fiscal prospects and tangible progress on reforms.
Wilmar’s latest move also tackles long-standing productivity issues in Nigeria’s palm oil sector. Much of the country’s output still comes from small-holder farmers working with ageing trees.
“Many of these plantations are over 25–30 years old, and yields are steadily declining. Replanting with high-yielding seedlings could dramatically boost production,” Pillai observed.
While past administrations attempted to stimulate growth through Central Bank interventions, results remained limited. Nigeria continues to lag behind top producers like Thailand and Colombia.
Security threats, especially from farmer-herder clashes and militant activity in the northeast, have further stifled progress.
Nevertheless, Wilmar’s commitment represents more than corporate expansion. It could mark a turning point for Nigeria’s agricultural transformation.
Also read: President Tinubu assents to new investments, securities act to strengthen Nigeria’s capital market
With over 200 million citizens and a growing need for edible oils, the palm oil sector could provide a crucial path to food security, rural job creation, and economic stability.
