Nigeria’s largest listed palm oil manufacturers, Presco Plc and Okomu Oil Palm Plc, are facing significant headwinds as cheaper imports squeeze their profit margins and undercut the domestic market. After an extraordinary multi-year period of expansion, the industry is now experiencing a noticeable slowdown, raising concerns among local producers and agribusiness investors.
A Dip in H1 2026 Financial Performance
Half-year financial statements for 2026 reveal that while the country’s two largest oil palm companies delivered a combined revenue of N323.9 billion, they have struggled to pass increased costs onto consumers, leading to a dip in profitability.
- Presco Plc: Revenue remained flat year-over-year at N198.7 billion for H1 2026, but profit after tax declined by 7.3% to N82.2 billion from N88.7 billion.
- Okomu Oil Palm Plc: Performance weakened even further, with revenue falling 3.5% to N125.2 billion and profit after tax dropping 16.4% to N39.7 billion.
| Company | H1 2026 Revenue | Revenue Growth (YoY) | H1 2026 Profit After Tax | PAT Decline (YoY) |
|---|---|---|---|---|
| Presco Plc | N198.7 billion | 0.0% (Unchanged) | N82.2 billion | -7.3% |
| Okomu Oil | N125.2 billion | -3.5% | N39.7 billion | -16.4% |
The Tariff Catalyst and Market Impact
The root of this emerging uncertainty can be traced back to recent fiscal policy changes. In April 2026, the Federal Government reduced import tariffs on crude palm oil from 35% to 28.75% as part of a broader effort to moderate national food inflation.
While the policy was intended to lower consumer food costs, plantation operators argue that it has opened the floodgates to cheaper imports precisely when local producers are investing heavily to expand their capacity. Data from the National Bureau of Statistics (NBS) indicates that Nigeria spent N23 billion on importing crude palm oil from neighboring West African countries in the first quarter of 2026 alone—a 30.26% increase compared to the same period last year.
“The industry is at an existential moment. Imports should only bridge Nigeria’s production deficit rather than become a permanent feature competing directly with domestic producers.” — Emmanuel Ibru, Chairman of the Plantation Owners Forum of Nigeria (POFON).
Plunging Prices and Idle Capacity
This influx of foreign supply has already sent shockwaves through the local agricultural market.
- Prices for fresh fruit bunches have plummeted by approximately 43%, falling from N2.8 million per tonne down to N1.6 million per tonne.
- This sharp drop directly reflects the increased volume of imports and an influx of allegedly smuggled vegetable oils.
- The wider manufacturing sector is feeling the other side of this squeeze; several local vegetable oil processors are currently operating below capacity because imported oil is undercutting domestic supply.
Despite these mounting challenges and the weaker pricing environment, major players are not entirely backing down. Presco recently announced plans to invest approximately $100 million to establish new operations in Ogun State, extending its plantation footprint beyond its traditional bases in Edo and Delta States. However, industry analysts warn that if import volumes continue to rise unchecked without a clear quota framework, Nigeria risks reversing a decade of agricultural gains and re-entrenching its dependence on foreign supply.
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