Wilmar Expands Palm Oil Business In Nigeria, Due to Naira Stability

Wilmar International Ltd., a Singapore-based agribusiness titan, is expanding its palm oil operations in Nigeria.

According to the company, Nigeria’s stabilizing naira and improved access to dollars were key factors in its decision.

The move signals robust confidence in President Bola Tinubu’s economic reforms, which are revitalizing the nation.

Last week, Wilmar, under the leadership of billionaire Kuok Khoon Hong, announced a $70 million acquisition to gain full control of a palm oil venture with PZ Cussons. Additionally, the company secured 8,500 hectares of former rubber plantations in Cross River State to cultivate crops for edible oil production.

Nigeria’s foreign exchange reserves have surged, inflation has eased, and the naira has gained stability, creating a fertile ground for long-term investments. In May 2025, Moody’s Corp. upgraded Nigeria’s foreign currency debt rating, further endorsing the nation’s economic recovery.

Wilmar’s chief executive for Africa, Santosh Pillai, emphasized, “The landscape is beginning to shift. 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.”

“A significant portion of Nigeria’s palm oil production still comes from smallholder farmers, and yields are steadily declining,” Pillai said. This highlights the underperformance of Nigeria’s palm oil industry, a sector in which Wilmar says it remains committed to promoting sustainability.

The Central Bank of Nigeria reports a 1.25 million-ton annual palm oil supply gap, prompting a 2019 financing initiative to boost local production and economic diversification. Wilmar’s expansion aligns with this goal, focusing on supplying edible oil for staples like jollof rice and yam porridge.

With Nigeria’s population exceeding 200 million, the demand for palm oil remains insatiable. Wilmar’s strategic investments in Cross River state aim to bridge this gap, reinforcing its commitment to the local market.

Nigeria’s Palm Oil Powerhouses: Okomu and Presco

Okomu Oil Palm Company and Presco Plc, both listed on the Nigerian Exchange Group (NGX), are leading Nigeria’s palm oil industry with impressive financial performance. These companies are pivotal in addressing the nation’s supply shortfall while delivering strong returns to investors.

In Q1 2025, Okomu reported a pre-tax profit of ₦32.2 billion, a 39.8% increase from the previous year, driven by robust production and operational efficiency. As of June 20, 2025, Okomu’s share price stood at ₦324.00, with a market valuation of approximately ₦309.5 billion.

Presco Plc achieved a record Q1 2025 pre-tax profit of ₦58.6 billion, nearly doubling its Q1 2024 figure, fueled by enhanced production capabilities. Trading at ₦485.00 per share on June 20, 2025, Presco’s market capitalization reached about ₦485 billion.

Both companies benefit from Nigeria’s push for agricultural diversification and favorable policies supporting palm oil production. Their success underscores the sector’s potential, making them formidable players alongside Wilmar’s ambitious expansion.

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