Price of palm oil in Nigeria

Palm oil prices increased by 101.3% from January to December 2024 in Nigeria. Though the commodity started with ₦1,228,661 per ton in January 2024. The price closed at all-time high at ₦2,473,500 per ton in December. The prices is anticipated to remain high in early 2025 but may likely decrease as we move into the peak harvest season in late first quarters and early second quarters of 2025.

The increase in palm oil prices in 2024 can be attributed to multiple factors and they include; supply and demand dynamics, production costs, government policies and regulations, seasonality, global market trends, exchange rate volatility and general inflation rate in the economy.

The fluctuations in palm oil prices highlight the need for sustainable solutions to stabilize the market. Expanding domestic production capacity, improving transportation and processing infrastructure, and addressing energy cost and foreign exchange volatility could help mitigate the impacts on households.