Palm Oil Business in Nigeria – Complete Guide + Business Plan
Are you currently unemployed in Nigeria? Looking for the right business idea in Nigeria to invest in? Do you know you could invest in palm oil business in Nigeria and be guaranteed of getting more than 100% profit from it? Are you interested in palm oil business in Nigeria and you are wondering how to start? This article gives answers to the above questions and much more…
Firstly, I will explain a little about palm oil and its importance.
Palm oil and Its Uses
Palm oil sometimes referred to as oil or red oil in Nigeria is an edible vegetable oil gotten from palm oil fruit (yeah, the one some of us call banga). It is reddish in color due to its high beta-carotene content. Palm oil is different from palm kernel oil derived from the kernel of palm fruit.
Palm oil has so many uses other than eating it with boiled yam (my personal favorite). Palm oil is used for cooking, which is most common in Nigeria. It contains lots of vitamins and essential nutrients.
Palm oil is also used for the manufacture of cosmetics, food items, drugs (especially vitamin supplements) and of course palm oil can be exported to other countries as it is one hot product in the international market.
Starting Palm Oil Business in Nigeria
Palm oil business in Nigeria is one business that is highly lucrative and as earlier mentioned, you are most likely going to get back 100% profit of the money you invested.
You can venture into palm oil business in Nigeria in different ways. Some of them are explained below.
HOW TO START UP PALM OIL PRODUCTION, PROCESSING, DISTRIBUTION, SUPPLY AND EXPORTATION BUSINESS
• Stocking and Selling Palm Oil business in Nigeria
One way to go into palm oil business in Nigeria is by stocking and selling after a given amount of time. How does this work?
Palm fruit like most other fruits is a seasonal fruit. It is always in abundance from February to May. This is why palm oil is cheaper in this period. Hence, this form of palm oil business in Nigeria involves buying the palm oil in bulk at its peak period, stocking or storing it until the time of the year when palm oil prices are higher, then you sell them about double the amount you started with.
To get into this form of palm oil business in Nigeria, you have to take the following steps…
1. Get your Capital Ready: At its peak period, a 25 litre keg of palm oil is sold for about 6000 naira (this amount usually doubles when the peak season is over). So, if you are planning on getting a hundred kegs or more, you could do your calculations properly and get your capital ready for your palm oil business in Nigeria.
2. Get a Place for Storage: For your palm oil business in Nigeria, you need a place to store your palm oil until its peak period has elapsed. You will need a room where enough air gets in. Palm oil can be stored at room temperature. It is important to note that palm oil in kegs should not put directly on the ground. They should be kept on pallets or wooden platform.
3. Kegs for Storing your Palm Oil: Get kegs the sizes you desire, wash and dry them. You could
also store you palm oil in drums, as long as they are properly sealed.
4. Buy your Palm Oil: Good quality palm oil is usually gotten from some states in Nigeria including Enugu, Imo, Oyo, Edo, Ondo and Delta state.
5. Selling your Palm Oil: If you can store your palm oil till September or October, you could sell them for really high prices. This is because production of palm oil at this time is usually low and prices go up. You can sell your palm oil in kegs or bottles for double the amount you bought them.
• Palm oil Production or Processing
You could also venture into palm oil business in Nigeria by going into processing of palm oil. Processing of palm oil in Nigeria can be done using different ways
1. Traditional Method: This is the method practiced by most villagers into palm oil business in Nigeria, it involves washing of the palm fruits, boiling and pounding, then allowed to cool. The palm oil is extracted by decantation and then heated to remove any moisture, allowed to cool and then stored.
2. Milling Method: Palm oil can also be processed using large mills to process the palm fruits into palm oil.
Processed palm oil can be sold in bulk to wholesalers or retailers, it could also be exported and you can make huge returns on this method of palm oil business in Nigeria.
• Palm Plantation
Another way of going into palm oil business in Nigeria is by growing your own palm tree plantation. Although this method of palm oil business in Nigeria involves long term vision as it will take some years to actually start getting profits.
It is still a great method of palm oil business in Nigeria, as soon as the profits start coming in, it never stops. Things you will need for startup includes patience, a fertile land and laborers to cultivate for you.
Palm oil business in Nigeria is one business that has continued to thrive over the years and with the never decreasing demand of palm oil in and outside Nigeria it will definitely continue to flourish.