Nigeria’s palm oil processing industry poses significant environmental pollution risks, jeopardizing the country’s ability to meet the UN’s 17 Sustainable Development Goals (SDGs) by 2030. Traditional processing methods generate palm oil mill effluent (POME), contaminating soil and shallow wells. This study investigated water samples from five locations (Edo, Akwa-Ibom, Cross River, Delta, and Imo states) with high effluent release. While some parameters met international and national standards (WHO guidelines, ASCE, NIS, and NSDWQ) others exceeded acceptable limits, detrimental to improved water quality. Results showed, pH values within acceptable ranges (6.5–8.5), high total conductivity and salinity (800–1150 µS/cm), acceptable hardness values (200–300 mg/L), nitrite concentrations (10–45 mg/L), excessive magnesium absorption (> 50 mg/L), biochemical oxygen demand (BOD) indicating significant pollution (75–290 mg/L), total dissolved solids (TDS) exceeding safe limits in four locations, total solids (TS) exceeding allowable limits for drinking water (310–845 mg/L), water quality index (WQI) values ranged from “poor” to “very poor”. POME contamination by metals like magnesium, nitrite, chloride, and sodium compromised shallow well water quality. Correlation analysis confirmed robust results, indicating strong positive correlations between conductivity and TDS (r = 0.85, p < 0.01) and pH and total hardness (r = 0.65, p < 0.05). The study emphasizes the need for environmentally friendly palm oil processing methods to mitigate pollution, ensure safe drinking water, and achieve Nigeria’s SDGs. Implementation of sustainable practices is crucial to protect public health and the environment.