Palm Oil Business in Nigeria: How to Get Started

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On the list of the most lucrative businesses in Nigeria is Palm Oil business.

This is one of the few Nigerian businesses that guarantees you more than 100% ROI and is unbelievably easy to start and manage. In short, palm oil business brings you cool money without stress.


But why is this business so lucrative?

Palm oil is used for a number of things which makes it a very hot, high-in-demand product. Some of its uses include-:

  • Cooking-: Palm Oil contains a lot of vitamins and essential nutrientsand is commonly used as a cooking ingredient.
  • Manufacturing-: Palm oil is an essential ingredient in manufacturing a number of products like cosmetics, food items and personal care supplies.
  • Drugs-: Palm oil is also used in manufacturing some drugs like vitamin supplements.
  • Pet Feed Manufacturing-: Palm oil is used in making pet feed as well.
  • Exportation-: Palm oil products and by-products are also popularly demanded in the international market.

So when you start marketing your palm oil business, these are the industries you should focus on.

Palm Oil Production Season

Unlike other types of businesses, this is a business that has its seasons and not an all-year round kind of business.


The Palm oil peak season starts in February through April/May. This is when you would buy your palm oil in large quantities in wait for the off-peak period.

During Peak Periods, you could get a 25 liter keg of Palm oil for as low N4, 000 which could be sold for as much as N8, 000 between July and January which is the off-peak season.

To start this business, these are the steps to take-:

Capital

The amount of capital you need to run this business depends on you and the scale of business you want to run but you may need between N100, 000 and N1 Million or more for this business.


The most important thing however, is to have your capital ready for when the peak period starts. This is also a business that involves tying down of capital for a long time so you may want to take note of that when borrowing money from financial institutions or when sourcing for investors.

Look for a Storage Space

You need a place to store your goods in wait for the off-peak period; somewhere cool, dry and safe. If you have a room that you do not use in your home often, you could make do with that or rent a place you can make use of.

You also need a couple of 25-liters kegs which you would use to store the palm oil.

Source for Products

You can get palm oil cheaply during peak period from places like Delta State, Bayelsa State, Imo State, Rivers State,Abia State, Akwa Ibom, Ondo State, Edo State and Rivers State.


It is very important to buy Palm Oil of good quality. This would make it easier for you to get customers to sell to.

Source for Buyers

Like I already mentioned above, you need to wait for the off-peak period which basically starts in July and then start to sell your products.You can sell to individuals (Wholesalers), food companies or any of the buyers mentioned above.


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