This paper contrasts the successful transformation of the oil palm sector in Malaysia with the stagnation of the oil palm sector in Nigeria, and examines the factors determining the different paths that the oil palm sectors took in these two countries with the aim of drawing lessons for future development and transfer strategy in Nigeria. Comparing two countries in different regions is not easy, especially when Nigeria has been in political chaos and the agro-climatic environments for oil-palm production differ greatly in these two countries. The purpose of this paper is, therefore, not to compare the potential technology frontiers these two countries can reach, but instead to highlight the technological and environmental factors that helped or hindered the countries in reaching these potential frontiers, however different they may have been.