Palm oil production in Nigeria is largely concentrated in the Niger Delta region, with smallholders accounting for about 80% of the production. Over a million smallholder plantation farmers, millers, processors, farm workers, wholesalers and retailers are involved in the sector. Local production has stagnated at a little less than a million metric tons since 2012, creating an estimated annual deficit of about 500,000 metric tons (worth 200 billion naira). Inefficient production and processing in Nigeria have led to abysmally low levels of output of palm oil compared to other producing countries in Asia.
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