Palm oil has been an important ingredient in the diet of many Nigerians. Palm oil is the world’s largest source of edible oil, accounting for 38.5 million tonnes or 25% of the global edible oil and fat production (MPOC, 2007). Palm oil is a product extracted from the fleshy mesocarp of the palm fruit (Elaeis guineensis). The global demand for palm oil is growing thus, the crop cultivation serves as a means of livelihood for many rural families, and indeed it is in the farming culture of millions of people in the country. Hence, oil palm is often referred to as a crop of multiple values, which underscores its economic importance (Akangbe et al., 2011). The demand for domestic and industrial application of palm oil has continued to increase (Omereji, 2005). It is estimated that for every Nigerian household of five, about two liters of palm oil are consumed weekly for cooking (Ekine and Onu, 2008). However, palm oil is an essential multipurpose raw material for both food and non-food industries (Armstrong, 1998). Palm oil is used in the manufacturing of margarine, soap candle, base for lipstick, waxes and polish bases in a condense form, confectionary (Embrandiri et al., 2011; Aghalino, 2000; Armstrong, 1998), pharmaceuticals (Helleiner, 1966), tin  plating, lubricant, biodiesel (Pleanjai et al., 2007; Armstrong, 1998), fat spread, ice cream, coffee whiteners, whipping creams, fatty acids free formulation, palm based cheese, micro-encapsulated, filled milk, mayonnaise and sealed dressings, red oil/olefin (Basiron and Weng, 2004). Before 1965, Nigeria is the world’s leading producer and exporter of palm oil, and has since 1974 ceased to contribute to the export trade in the commodity, largely due to increased domestic demand/consumption that have not kept pace with the production (Omoti, 2004). During the past decade, Nigeria has become a net importer of palm oil (Olagunju, 2008). While in the early 1960’s, Nigeria’s palm oil production accounted for 43% of the world’s production, currently, the country accounts for about 1.7% of the global palm oil production. Also, Nigeria is now ranked fifth in the global crude palm oil production in the world (Nnorom, 2012), an enterprise that Nigeria once dominated. Vogel (2002) reports that Nigeria is now an importer, and it is possible that the size of this demand may be currently supplied by foreign imports. In 2009, some Nigeria citizens are mounting pressure on the federal government to lift the 35% tariff on crude palm oil importation. Presently, cheap crude palm oil is being imported from Malaysia and Indonesia (Nnorom, 2012).

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