By Atoyebi Nike
Nigeria’s top palm oil producers are on track to achieve a combined after-tax profit of ₦161 billion in 2025, according to a new sector outlook from Afrinvest West Africa. The strong forecast is anchored on rising global crude palm oil (CPO) prices and sustained operational performance from industry leaders Presco Plc and Okomu Oil Palm Plc.
The report anticipates a 38.8% year-on-year growth in profit before tax (PBT) from ₦166.8 billion in 2024 to ₦231.5 billion in 2025. Profit after tax is projected to rise by 36.8% as both companies capitalize on favorable market dynamics and internal efficiency gains.
Afrinvest expects global CPO prices to hit $1,200 per metric tonne (MT) by the end of 2025 up from about $900/MT currently driven by growing demand for biodiesel in Southeast Asia, lingering supply chain issues, and improving trade relations between major economies such as China and the United States.
“Nigeria stands to benefit significantly from these developments, especially as countries like Indonesia and Malaysia tighten domestic biofuel policies, limiting exports,” Afrinvest noted in its 2025 Oil Palm Sector Update.
In 2024, local palm oil prices climbed 56.8% to ₦420,906 per MT, spurred by global trends, naira depreciation, and rising import costs. This surge powered a 90.2% jump in industry revenue to ₦337.7 billion—Presco accounting for ₦207.5 billion and Okomu ₦130.2 billion.
Despite macroeconomic headwinds, including a 46.2% drop in the naira’s value and steep energy costs, the companies maintained healthy margins through improved production efficiency and scale optimization.
Looking ahead, Afrinvest expects stable exchange rates, easing energy prices, and lower borrowing costs to reinforce profitability in 2025. With Nigeria’s domestic palm oil
