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How To Start Palm Oil Production Business In Nigeria – Made Easy

Palm oil is one essential food commodity in Nigeria that is widely used for cooking at home and as raw material in the manufacturing of Soaps, detergents, cosmetic, foods processing, Bio-fuel etc
The high demand for Palm oil in Nigeria and the short fall in its supply has made Palm Oil production very lucrative.
I urge interested investors who wants make stable income in Nigeria to take advantage of the opportunity inherent in Palm Oil production business.Palm fruits, the major raw material for Palm oil production are widely available in the Southern part of Nigeria.
The Machines and equipment required for processing Palm oil can be sourced in Nigeria from local machine fabricators.
Also, the market for Palm oil in Nigeria is massive; in fact the current production level is not even enough to meet domestic demand not to talk of exporting the product.

You will need to choose a favorable location to setup your Palm oil processing mill that will enable carryout your daily production activities without any hindrance.
If already own a piece of land that will make Factory setup much easier, but if don’t own a land then you made need to buy or lease one.
The next stage after acquiring the land is to build a factory space that will house your Palm Oil production machines and equipment, production raw materials, office and changing room for your workers.
With at least N1million you can buy a piece of land and build a simple structure that will house your Palm oil production machines, equipment, raw material and workers.
BUSINESS REGISTRATION: To make your Palm oil production business a legitimate business, you will need to get registered with the Corporate Affairs Commission of Nigeria (CAC).
You can register a business name or as a limited liability company.
Below is information on How to register your Business in Nigeria with CAC.
They say “failing to plan is planning to Fail”
Therefore, it’s very necessary you carry out a comprehensive feasibility studies or a business plan before embarking on setting up your Palm Oil production business. Please Contact Us if you need a BUSINESS PLAN or FEASIBILITY STUDIES for this project.
You need factory workers, marketers, driver and other relevant staffs to assist you in running the day to day activities in your Palm Oil production business in Nigeria.
You need public electricity supply from PHCN to power your machines and equipment, though not reliable. You will also need a stand by generator say 50KVA and above incase electricity supply from PHCH fails.
Below are list of machines and equipment for Palm Oil Production process.
Palm Fruit Stripper
Nut Fiber Separator
Pounding Machine
Mechanical Screw Press
Steel tanks for storage purposes
With the total sum of N3.5million, you can purchase a unit of locally fabricated Palm Oil processing machines and equipments that can produce 2.5tons/hour.
However, if you can’t afford a 5ton capacity machines and equipment, you can lower the production capacity to say 1tons, then discuss with the Palm Oil Machine fabricator on possible cost reduction.
The major raw material needed in Palm oil production process is the ripe Palm fruits harvested from palm trees.
Ripe Palm fruits can be sourced from oil palm plantation scattered all over southern part of Nigeria.
Palm fruits can be sourced from states like Ekiti, Edo, Ondo, Anambra, Cross River, Oyo,Abia, Enugu ETC. And are usually available in large quantity during raining season from May to September and extends to December.
To be very frank with you Palm oil Production business in Nigeria is capital intensive. To setup a (2.5ton capacity) Palm oil processing mill you need a minimum startup capital of about N15million. Setup Cost can increase depending on your chosen location, and many other factors.
Startup assets usually make up the rest of the needed capital. These include the cash needed for recurrent expenses (one year forecast), startup inventory and stock (for six months), and the cost of other assets required at startup, such as office furniture, processing equipment and machinery, office fittings, and so on.
If you have all the funds needed to startup, then you can run the business as a sole proprietorship business. However, if you need more funds from third parties, then you should consider involving one or more other individuals and going into a partnership. Alternatively, you can source capital from the bank of industry and other fund lending institutions in Nigeria.
The Palm oil production process in Nigeria consists of the following stages.
STAGE ONE: Palm fruit reception – harvest the palm fruit from the oil palm plantation and remove the fruitlets
STAGE TWO: Palm oil sterilization – use water or steam for palm fruit sterilization
STAGE THREE: Palm oil threshing – separate the palm fruitlets from the bunches by rotation or vibration
STAGE FOUR: Palm oil digestion – crush the palm fruit to maximize the oil rate
STAGE FIVE: Palm pulp pressing – utilize palm oil processing machines to extract palm oil
STAGE SIX: Palm oil clarification – remove foreign impurities from the final palm oil to get the crude palm oil
STAGE SEVEN: Palm oil storage – the final crude palm oil will be stored in specialized tank for further selling or transportation.
Marketing your palm oil aggressively after production is very necessary if you must make profit from all the hard work, time and resources put into the business.
To sell your Palm oil, you will need to visit major markets and your products to industries in Nigeria that uses palm oil as a major source of raw material for production.

The market price for a  fully loaded fully loaded 15ton cost around N3million, while a 30tons Truck cost about N6million.

Please take note the market price is never stable,sometimes it goes high and the other time prices come down.
Having read through the article above, I believe you now know that Palm oil production business in Nigeria is very lucrative.
Stay blessed, as you think of how to take advantage of this great opportunity to make steady income through Palm oil production business and make profit with it.

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