A shortage of olive oil, often dubbed “liquid gold,” has sent prices soaring to unprecedented levels according to a recent CNBC report. Nigeria, a major user of olive oil could witness an upcoming price increment in ‘anoiting oil’. 

Nigerians use olive oil, particularly the Goya brand extends far beyond culinary purposes.

It is a common practice in most for most Christians to use the ‘anointing oil’ to seek employment, healing, and other “undisclosed favors”. The oil is believed to have the power to bring about these breakthroughs.

However, the value of Nigeria’s olive oil imports has been increasing in recent years, rising from around $635,000 in 2019 to approximately $770,000 in 2019. In 2020, over 87% of Nigeria’s olive oil imports came from Spain and Italy. In the same year, Nigeria imported 628,000 U.S. dollars of olive oil.

An analyst at market research group Mintec, Kyle Holland, attributed the shortage to climate-related extreme weather events in southern Europe, particularly affecting olive oil production in countries like Spain, Italy, and Greece.

Spain, the world’s largest producer of olive oil, has seen its production significantly impacted, with official figures revealing a stark decline in output. 

The which supplies more than 40% of the world’s production according to the Centre for the Promotion of Imports, might typically be expected to produce somewhere between 1.3 million to 1.5 million metric tons of olive oil each harvest according to CNBC.

Olive oil prices in Spain’s Andalusia stood at 7.8 euros ($8.4) per kilogram as of April 19, according to Mintec’s benchmark index, down from just over 8 euros at the end of March. The decline extends a downward trend after olive oil prices reached an unprecedented peak of 9.2 euros in January.

Despite some improvement in production estimates for Spain’s olive harvest, dwindling reserves are expected to keep markets volatile, potentially leading to sudden price spikes in the near future.

“I think the biggest concern is effectively the overall supply. People are quite bearish on the market right now, but as the season wears on, and as we get further and further away from the harvest we’ve just had, most market players seem to think that it is going to drain,” said Holland. 

Head of climate policy at Green Alliance UK, Helena Bennett, attributed the record spike in olive oil prices directly to climate change. 

She highlighted Spain’s drastic reduction in production due to drought and extreme heat, warning that similar impacts could affect other food crops in the future.

The vulnerability of olive trees to climate change exacerbates the situation, with experts expressing grave concerns about the long-term viability of olive oil production in affected regions.

In addition to the economic challenges posed by soaring prices, olive oil thefts have become increasingly common, with criminal gangs targeting the valuable commodity for resale on the black market. 

Supermarkets in Spain reported olive oil as the most stolen item. Approximately 50,000 liters of extra virgin olive oil was stolen from one of Spain’s oil mills in the Cordoba region in August 2023 which was estimated to have been worth more than 420,000 euros.