Major palm oil producers in Nigeria are poised to post record profits of 161 billion naira in 2025, thanks to soaring crude palm oil (CPO) prices and solid operating fundamentals, according to a new report by Afrinvest West Africa.

The Afrinvest West Africa report forecasts 38.8% annual growth in pre-tax earnings (PBT), from 166.8 billion naira (108.6 million US dollars) in 2024 to 231.5 billion naira (108.6 million US dollars) in 2024 to 231.5 billion naira (150.7 million US dollars) in 2025.

Furthermore, after-tax profit (PAT) is expected to increase by 36.8% to 161 billion naira (105 million US dollars), with both companies demonstrating their strategic prowess, capitalizing on favorable market dynamics and internal efficiency gains.

afrinvest forecasts that global crude palm oil (CPO) prices will increase to 1,200 US dollars per metric ton (MT) by the end of 2025, from 900 US dollars per MT currently.

This increase is fuelled by increased demand for biodiesel in Southeast Asia, ongoing supply chain challenges, and strengthened trade ties between major economies such as China and the United States.

“Nigeria is expected to benefit significantly from these developments, especially as countries like Indonesia and Malaysia are tightening their national biofuel policies, thereby limiting exports,” Afrinvest noted in its 2025 palm oil sector update.

En 2024, les prix nationaux de l' huile de palme ont bondi de 56,8%, atteignant 420 906 ( 274.01 USD) per metric ton, due to fluctuations in the international market, the weakening of the naira and the increase in import expenses.

This strong increase fuelled a 90.2% increase in sector revenue to 337.7 billion naira (219.8 million US dollars), with Presco contributing 207.5 billion naira (135.1 million US dollars) and Okomu contributing 130.2 billion naira (84.8 million US dollars), with Presco contributing 207.5 billion naira (135.1 million US dollars) and Okomu contributing 130.2 billion naira (84.8 million US dollars) Americans).

Despite the macroeconomic challenges they face, such as a 46.2% depreciation of the naira and a surge in energy spending, businesses have maintained high profit margins by improving production efficiency and optimizing large-scale operations.