Do you know the current palm oil price In Nigeria? The prices varies due to certain factors which i am going to reveal in this blog post, and for those who are profound lovers of cooking, as it relates to the natural way, I am talking about palm oil in particular in Nigerian cuisine.
Just like any other nation in the world, Nigeria has a wide variety of foods with palm oil being at the center in the recipe of which every home having this “Africa’s liquid gold” available in their kitchen.
Most recently, however, I was opportune to cook in a family function, I was in the position to buy a lot of palm oil, which prompted me to start researching why this could be so.
As it turns out, several factors account for changes in the price of palm oil in the Nigerian market, so its difficult to find one standard price. In this blog post, I am going to reveal the price of palm oil in Nigeria today, the factors influencing these prices, and how to buy palm oil.
Click here to learn about the price of crayfish in Nigeria.
Let’s get started!
A Report on the Market Challenges of Palm Oil in Nigeria
Factors that contribute to the change of palm oil prices in Nigeria, they include the season, the demand and the supply / purchasing power, the cost of production, and the global market.
Seasonal
The price of palm oil may differ in the market for entirely different reasons such as the time of the year. The price during the peak production period from March to July is particularly lower owing to the high supply in the market. However, during the off season which is usually from August to February, the prices soar owing to the low supply.
Demand and Supply
Prices are also dependent on the demand. This is especially so when consumption is high as during the festive periods like Christmas and Easter. Equally, low supply of palm oil will mean higher prices where there is a low production due to poor harvest and other such factors.
Production Costs
The price at which the market sells the commodity is relative to production costs such as labor, transport and processing cost. Hence, it’s evident that palm oil would be very expensive at all times due to any price increase in the above mentioned factors.
International Market Trends
The same applies to Nigerian palm oil market, Nigeria cannot operate in a vacuum. Thus, these also contribute to the price of locally sold palm oil.
Current Palm Oil Prices In Nigeria
In 2024, palm oil prices in Nigeria tend to differ according to region, quality and quantity purchased. Here’s a breakdown on current pricing structure as a result of my findings:
Wholesale Prices
In the case of purchasing large quantities, the cost for 25 litre palm oil keg ranges between NGN 69,000 to NGN 75,000 depending on the region and quality. For example, in several regions where palm oil production is plentiful, such as the South-South and the South East region, prices are usually lower than other regions with minimal supplies of palm oil.
Retail Prices
For smaller volumes such as a 1-liter palm oil bottle, consumers are likely to pay between NGN 3,000 and NGN 4,000. This price range also varies with locality, market factors and to some extent, the quality of the palm oil available in the market.
Premium Palm Oil
There is a niche placed for premium palm oil that is made from organic palm trees that use traditional processing methods. The prices for the best quality palm oil are of course much higher with a 5-litre Alumni Palm oil keg retailing at about NGN 15,000 to NGN 17,000.
In my opinion and that of most people I know, when one purchases products from a producer or local markets, it almost always turns out cheaper than a similar experience at a supermarket due to some factors.
Why the Price Matters: Personal Reflections
Initially, my quest to unravel palm oil prices in Nigeria was not entirely limited towards finding out where the cheapest price exists. It was in larger perspective. Palm oil is considered only as a raw material for cooking, whereas it is a rather crucial element in culture and the economy. For example, I recall my grandmother from whom I most adored cooking her viral banga soup out of palm kernel she freshly sourced and the home was all oiled up with the aroma. I remember that in those days, palm oil was cheap but now the economy have completely changed in the last decades.
Understanding the current price empowers me to purchase things whether for my household or for bigger occasions in a more effective way. This also makes me respect the production processes of this essential oil from the harvesting of the palm fruits by the farmers to the processing of the oil for use in our homes.
Tips For Buying Palm Oil in Nigeria
If you are interested in purchasing palm oil, particularly in large or small quantities here are a few tips that I have learnt from my experience:
- Buy in Bulk: If you are going to have enough storage space, it would be beneficial if you buy palm oil in bulk during peak season. Most times prices are cheaper when there is plenty of supply.
- Check the Quality: The color and clarity of palm oil in the bottle should be checked. Pure palm oil is free of any sediments at the bottom of the container, which should have an orange or red color.
- Source Locally: When possible, buy crops and products directly from local farmers or at markets. Local producers will encourage such customers, potentially providing you fresher and more inexpensive products.
- Consider Storage: Proper storage ensures a long shelf life for palm oil. Because palm oil will grow bad over time, it is critical that it be stored in a cold, dark place, preferably refrigerated.
- Stay Updated on Market Trends: Avoid buying too many items at once because market prices can change at any moment so better to be informed about market tendencies.
Conclusion
In Nigeria, the palm oil market can sometimes be intimidating because its prices are variable and it seems unstable. However, when armed with appropriate information and some expertise in the marketplace, it is possible to locate affordable high-quality palm oil. Be it for household use, an event, or a business endeavor, it’s essential to be up to date with the market trends as well as how, where and when to purchase to avoid overspending and to get the right quality and quantity of products. As a home cook who appreciates quality ingredients, I have learned that paying attention to the changing trends in palm oil is important.
FAQs About Palm Oil Prices in Nigeria
Is It More Economical To Purchase Palm Oil In Bulk?
Yes, it is usually less expensive to buy palm oil in bulk than in small quantities. It is more cost-effective, particularly when one is purchasing wholesale. Prices are lower, and supply is high because of the main harvest season.
Best Place To Buy Palm Oil Nigeria?
Local markets purchase from palm oil producing states such as South-South and South East, and its usually fresh and cheaper compared to supermarkets.
How To Know The Best Quality Palm Oil?
Answer: If you want to make sure that you are buying high-quality palm oil, look out for its dark red or orange color, its clarity & absence of any dirty film or particles. There is also a strong odor accompanying good palm oil. Getting quality products from trusted merchants and seeking references would also be of assistance.
How Long Can Palm Oil Be Stored?
Palm oil can be expected to remain solid and safe for use within a year or longer, depending on environmental conditions, specifically factors such as darkness and coolness as well as avoidance of direct sunlight. It must also be covered in a plastic wrapper or an airtight container to avoid contact with air which causes hydrogenation and spoilage. Storing in small quantities may help keep the oil fresh as well.