Global agribusiness giant Olam Agri has opened a $50 million soybean crushing plant and feed mill in Ilorin, unveiling what it describes as the largest facility of its kind in sub-Saharan Africa. With an annual processing capacity of 350,000 metric tonnes, the project is being framed as a milestone in Nigeria’s long-stated ambition to move from raw commodity production to value-added agriculture.
The plant will process locally sourced soybeans into edible oil and high-protein animal feed. These inputs that Nigeria is currently grappling with to produce at sufficient scale. This facility represents a strategic attempt to bridge a persistent supply gaps, in a country that spends billions of dollars annually on food imports, particularly for cooking oil and livestock feed. Nonetheless, the plant’s real significance lies in what it reveals about the structure and fragility of Nigeria’s food system.
Nigeria is one of Africa’s largest producers of soybeans, but like many agricultural commodities, much of that output has historically been sold with minimal processing. The Ilorin plant aims to reverse that pattern by anchoring a domestic value chain: buying from local farmers, processing at scale, and feeding into both consumer markets and the livestock industry.
If it operates at full capacity, 350,000 tonnes annually could meaningfully shift supply dynamics. Nigeria’s edible oil deficit has long contributed to high retail prices, while feed shortages have constrained poultry and livestock producers, pushing up the cost of protein for consumers. By increasing local processing, the plant could reduce import dependence and ease price volatility, at least in theory.
But the scale also raises a critical question: can local production keep up? Nigeria’s soybean output fluctuates widely due to insecurity, climate variability, and limited access to inputs. Without a reliable pipeline of raw materials, even the most advanced processing facility risks operating below capacity.
Olam Agri says it plans to integrate smallholder farmers into its supply chain, a move that could have significant human and social implications. In Nigeria, smallholders account for roughly 80 percent of agricultural production, yet they often remain excluded from formal markets and value-added opportunities. If executed well, the Ilorin project could provide farmers with more stable demand, better pricing, and access to improved seeds and inputs. That, in turn, could raise rural incomes and reduce poverty in farming communities, especially in states like Kwara, where agriculture is a major employer.
Continue reading with Eandel
Subscribe to unlock the complete story and receive your subscriber benefits.
