Nigeria’s castor oil industry has the potential to unlock over N300 billion in annual export revenue, according to a leading voice in the sector. Okekunle Akinntunde, Chairman of the South West Castor Growers, Processors and Marketers Association of Nigeria, believes the country is sitting on a goldmine that could rival crude oil in value—if the right investments are made.
Castor oil is in high demand globally due to its wide industrial applications, from pharmaceuticals and cosmetics to lubricants, plastics, and even biofuels. Yet despite Nigeria ranking as the world’s third-largest producer of castor seeds—with an output of roughly 300,000 metric tons per year—the country still imports over N30 billion worth of the commodity annually.
“The value of castor oil can surpass that of petrol,” Akinntunde noted. “A litre of crude castor oil can fetch up to N7,000, compared to petrol or diesel.”
He urged the government to prioritize local production and value addition, arguing that Nigeria has all the right conditions: fertile land, a suitable climate, and a large agricultural workforce. However, he said progress has been stalled by a lack of processing facilities and unaffordable equipment—especially shelling machines, which are vital for castor seed processing.
“If farmers have access to soft loans or subsidies for this machinery, local output would increase dramatically,” he said.
Despite being ideally positioned to meet growing global demand, Nigeria’s castor oil sector remains underdeveloped. Akinntunde pointed out that demand is projected to hit $2.84 billion globally by 2027, and Nigeria could dominate that space if the right steps are taken.
India currently leads the global castor oil market, accounting for over 33% of global export value in 2023. Meanwhile, Nigeria continues to lag, missing out on lucrative opportunities in both the local and international markets.
He further emphasized that castor beans thrive in dry conditions and can be harvested just six months after planting—making them a resilient and economically viable crop.
Still, the industry faces several challenges beyond equipment costs. These include limited access to improved seed varieties, lack of farmer training, and weak market linkages. Addressing these issues, Akinntunde said, could turn castor oil into a major export commodity and a powerful driver of economic growth.
“This is a crop that could help reduce Nigeria’s reliance on oil,” he said. “It’s time we stop exporting raw seeds and start building an industry that adds value and creates jobs.”
With global demand rising and castor’s potential already proven in countries like India and China, stakeholders are calling on the Federal Government to act swiftly—transforming castor oil from an overlooked commodity into one of Nigeria’s most profitable exports.
