Nigeria’s two dominant listed palm oil producers, Okomu Oil Palm Plc and Presco Plc, are forecast to achieve record profits in 2025, driven by an anticipated surge in crude palm oil (CPO) prices and robust operational performance. A new report by Afrinvest West Africa projects the combined profit after tax (PAT) for both companies to jump by 36.8 per cent to N161 billion, following a projected 38.8 per cent year-on-year increase in profit before tax (PBT) from N166.8 billion in 2024 to N231.5 billion in the coming year.

This bullish outlook is predicated on expectations that global CPO prices will reach $1,200 per metric tonne (MT) by the close of 2025, a notable rise from the current $900/MT. The price rally is being propelled by several factors: persistent supply disruptions, intensified demand for biodiesel in Southeast Asia, and a marked easing of trade tensions between key global economies such as the U.S. and China.

“With global supply tightening as Indonesia and Malaysia ramp up domestic biofuel mandates, Nigeria stands to benefit from elevated international prices and widening domestic supply gaps,” Afrinvest noted in its 2025 Oil Palm Sector Update.

The sector already demonstrated positive momentum in 2024. Local palm oil prices soared by 56.8 per cent year-on-year to N420,906 per MT, reflecting the interplay of global market dynamics, the devaluation of the naira, and imported input inflation. These tailwinds contributed to a 90.2 per cent increase in industry revenue, reaching a record N337.7 billion – with Presco contributing N207.5 billion and Okomu N130.2 billion.

Despite facing considerable inflationary pressures and escalating production costs, exacerbated by a 46.2 per cent depreciation of the naira and elevated energy expenses, both Presco and Okomu managed to widen their profit margins. Their resilience is attributed to higher production volumes, strategic capacity optimisation, and enhanced operational efficiency, positioning them strongly for the projected gains in 2025.