How To Make Millions From The Palm Oil Business In Nigeria

How To Make Money From The Palm Oil Business | Image Source: www.eco-business.com
As the world’s attention stays heavily focused on energy and technology, the few entrepreneurs who focus on large scale agriculture are reaping good profits from their investments. The agricultural business ecosystem is widespread, because of the hundreds and possibly thousands of various crop types that can be grown and sold as an income stream.
In the lot of these possible agricultural segments lies a profitable niche that only a few would dare venture into. This is the palm oil business.
Growing, buying, and selling palm oil products is a highly profitable agricultural business for any new and existing farmer, or agriculture entrepreneur to venture into. The potential in this venture makes the palm oil business one of the largest income streams for the eastern part of Nigeria, and several other developing countries in the world.
This detailed business plan for a palm oil business, will show you how to grow, buy, and sell palm oil products in Nigeria, India, or anywhere else in the world.
See Also: 15 Profitable Small Business ideas for Beginners In 2016
First, is there a demand for palm oil products in Africa? Who uses palm oil products anyway?
Palm oil products have diverse uses in various parts of the world, and come in different forms such as; red palm oil, groundnut palm oil, and several others.
Palm oil products can be used in the pharmaceutical and cosmetic industry, and in the production of water treatment products and drilling fluids. It is also used in the production of lubricants, soaps, candles, detergents, as feedstock for biodiesel, and as an alternative to various mineral oils used in power stations.
Aside from products that cannot be used in any edible form, palm oil products can be used in making margarine, condensed milk, ice cream, preparation of meals, and various other edible commodities.
These diverse uses and high demand for palm oil products, contribute to the high growth of the palm oil business industry in various parts of the world.
See Also: 5 Important Reasons You Must Invest In Agriculture In Nigeria Now
The Various Business Ideas And Opportunities In Palm Oil Production:
1). Bulk Purchase & Resale Of Palm Oil Products:
In this model, the palm oil trader purchases palm oil products when the prices are low; usually during the harvest season between March and May, stocks the palm oil products, then resells them during the off-harvest season.

Image Source: pixhder.com
During this period, the supply of the commodity in the market is relatively low, and as scarcity kicks in, the price of the palm oil products begin to rise, then you can reap larger returns on your investment; sometimes around slightly over 100%. But periodically.
The palm oil products can be bought from local farmers during the harvest period, and preserved in various storage facilities, before they’re eventually transported for resale in the cities, or other communities.
Palm oil products purchased for resale, could also be exported to various locations such as China, and Singapore, to mention a few.
See Also: How To Start A Cassava Farm In Nigeria: A Comprehensive Business Plan
2). Setting Up And Growing A Palm Oil Plantation:
Growing palm trees can sometimes be the best approach for a palm oil entrepreneur with a long term vision. Since West Africa is a rich region for a full and nourished maturity of palm oil products, setting up a palm oil plantation for high quality crop growth would be a great idea.

Image Source: www.palmoilextractionmachine.com
The business opportunities that lie in the palm oil business sector in Africa is vast and wide because, far lesser growth and processing of palm oil products in a commercial scale happen in the region than expected. This large empty demand for more producers advertises a great opportunity for would-be agricultural entrepreneurs to take advantage of.
With an abundance of rain, more than adequate sunshine, and largely fertile soil in the African continent, growing and processing palm oil products can only get a lot better.
When the oil palms are cultivated, the fruits are crushed to produce palm oil. The white inner kernel inside the seed of the palm oil fruit can be further crushed to produce palm kernel oil, which has hundreds of uses.
Before you start a palm oil plantation, it’s important you know that it would require significant investment, the right fertile farmland to grow your palm trees, and a patient mind because the Return On Investment (ROI) is far in the future.
See Also: How To Start A Profitable Poultry Farming Business In Nigeria
3). Palm Oil Processing Plant:
While there are palm oil farmers and buyers, there’re also the palm oil processors. These businesses are those that process the fruits to various forms for use in households, factories, and more.

Image Source: www.gcmachines.com
Large mills can be used to process the palm fruits into palm oil with little human effort. This saves both time and energy for the farmers and the processors.
Although there are more traditional ways to process the palm fruits into palm oil, using modern machinery makes the effort seamless, and speeds up the entire process.
You could either purchase the palm oil mills for rent to various farmers and processors who need it’s use, or you could purchase your own palm fruits from the farmers directly, process them with your mills, then prepare them for export, or sell them to the final consumers in the cities and villages. This method maximises your profits, and enables you to completely control the time your products make it to the market.
See Also: How To Market Your Farm Products In Nigeria: 10 Ways To Get Distributors
These various business opportunities in the palm oil business industry can be a benchmark for any entrepreneur aspiring to invest in agriculture, to start off with.
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What are your thoughts on the agricultural palm oil business sector? Please let me know by leaving a comment in the box below.
THANKS FOR THE PALM OIL INFO
You’re welcome Omotolani.
Thank you for the comment.
Pls I need more information about the export of palm oil to Africa countries. Kindly reach me on [email protected]
Hi Philip,
An e-book will eventually be available on the website for palm oil farming and exportation.
Do lookout for it.
Thank you for asking.
Please u need more information on the Palm Oil Business
very educative
Thanks Chuks for the commendation.
l have a palm plantation, how to setup an oil mill is a problem.
Hi Otams,
I’ll write an article on setting up an Oil Mill sometime in the future.
Thank you for asking.
Hi otams, just call me on 08039370977 lets talk about the setting up a mill. Ezekiel.
I want to go into palm oil supply business how to get buyer is my main issues don’t know how to go about it.
Hi Mayowa,
We’ve written two articles on selling farm products here https://startuptipsdaily.com/how-to-market-your-farm-products/ and here https://startuptipsdaily.com/how-to-sell-agricultural-products-online/
Thank you for asking.
Thanks for sharing this information about palm oil processing. Please i would like to know more about the equipment required for processing, the amount. Would like to get your contact also.
Hi Ezekiel,
An eBook answering all your questions would be available for purchase on the website soon.
The easiest way to identify the right equipments is by visiting a palm oil processing centre.
You can also reach me via [email protected]
Thank you for asking.
how can I get an palm oil farm to rent? or can I get to buy in tonnes from farmers. I am in Benin city. Thanks.
I suggest visiting one of the oil palm farms in your state for more enquiries.
Thank you for asking.
Queen u can chat me on 08037558765 for supply
Are you a palm oil miller/producer. Do you have palm oil in large quantity and are you looking for distributors? Contact me on my phone number 08085970934. I have market for the product here in Lagos state. I am a distributor. I am looking for more palm oil producers. Contact me on 08085970934
I have palm oil in large quantity,I can supply to you if you are interested,08135076905 that’s my number
I like your post. can you send me your phone no, so we can relate better. My no: 08033377826.
You can reach me via email at [email protected].
Thank you for the comment.
Thanks for this great idea. How and where do i get palm Oil for business cheap?
Edo state is your best bet.
Thank you for asking Ada.
Thanks! Very insightful and helpful.
Thank you for the commendation Anthony.
Have a great time!
Good morning sir! Thanks for the wonderful expotion the palm oil business, as am interested to start as as a palm oil distributor in rivers state. Pls I need help and guide on how to go about it. Thanks
I’d advice you visit one of the large palm oil farms in places like Benin.
They’d let you know what it takes to become their distributor, so you can get started.
Thank you for asking.
Thanks for the info, i wish to start oil palm business but dont have huge money. Give me an ideal of what to start with.
Hi Adesiyan,
If you have a farmland, anywhere from 600,000 Naira will be helpful for a start to understand the terrain, but may reap no real results.
Starting anything ultimately depends on the scale you intend to run it at.
Thank you for asking.
Thanks for the oil ideas,I really love this business,I wish to start up soon but don’t have a huge capital on it but I hope 50/100k can give a start for a newbie like me,I appreciate your efforts for us sir
Hi Ezekiel,
50,000 to 100,000 wouldn’t help you startup your business right. You’d need considerably more for any visible or positive return on investment.
But thank you for the kind words and have a great time!
hi Stan,
I have a great idea about the lot. My main problem is where to get the machines from stripper to kernel separator. I have visited some local fabricators But not satisfied with what I saw. Perhaps you know one around the southwest states of Nigeria. And the cost of having a medium size line. I can be reach on 08137069626.
Thank you.
Hello,
The best machineries currently are imported.
Concerning local fabrication, I can’t guarantee you may find your standards easily.
Perhaps you may consider purchasing outside the country.
I hope this helps.
Thank you for asking.
i want to know how i can start buying and selling palm oil,i leave in lagos.I will be very happy if i can be shown the step by step way to start.
Thanks prince mcavoy obughe
Hi Prince,
It’s best you find a dealer in Edo state and have them send them in for you periodically.
This is one of the most cost effective ways to go about it.
Concerning a step by step guide, we’ll have a palm oil business eBook available on the blog eventually.
Do look out for it.
Thank you for asking.
Thanks, its really educating. But of all article I have been reading, none has ever mentioned risk and disadvantages involved in the business. Or are there no risk in this business?
Thanks for the suggestion Anthony.
I think I may start including those in my articles.
Good one, can you show more detail of the different breed of Palm seedling and the best advisable.
thanks
Hi Ade,
Overtime, we’ll have a palm oil farming and processing eBook that explains everything thoroughly, available for sale on the platform.
Do lookout for it.
Thank you for asking.
Needed to know the risk and disadvantage.
The answer and more, will be listed in the eBook.
Do lookout for it.
Thank you.
hello people please i need oil in large quanity to be exported to china where can i get it.
Hi Uchenna,
I’d advise you visit Edo state.
Thank you for asking.
I appreciate your blog on the subject matter. Could you please advise me on how to process ready made palm oil for repackaging into different smaller units for domestic and export consumption
Hi Oyelola,
We’d have an eBook out on that soon.
Do look out for it.
Thank you for asking.
Good day,
Thanks for the useful information you have provided on this value chain. I am presently considering this area of agriculture and any other useful insights you may have will be appreciated.
Hi Wilfred,
I think you may need up-to-date statistics on the industry.
You can source that information on the internet instead, as we haven’t carried out any recent market research.
Thank you for asking.
I have a palm oil mill located in Edo state,off Abuja benin express way. It stopped functioning for some time now because I do not have a farm. The mill is semi automated with a good factory building on a land of 200×200 ft. If I get a good farm I could consider the business again but if not I wish to sell off the place. Please contact me if you will wanna deal. 08075538600
Having interest in the mill
I am looking for potential investors to develop rural land size of 39,797 hectares with potential of another 120,000 hectares in Papua New Guinea. Intended projects are logging and sawmill to clear the land then develop with agricultural projects – preferably Oil Palm and Milling facility.
Please contact me [email protected] if you are interested in more information.
I have a lot of palm oil for sale. buyers should feel free to contact me on 08174119154
Really educational article
I have conducted personal interviews from so many individual sellers of palm oil and I have always tired to know where the best quality of palm oil is sourced and the common feedback is that it is from EBONYI state. Is this true
Hi Igwe,
While I may not be able to answer that question, I’d advise you reach out to a local palm oil association in Nigeria for an answer on that.
Thank you for asking.
How about the required cost for the entire industrialization of palm oil, a form of estimation would be appreciated
A feasibility study would be required for this.
Thank you for asking.
very informative.thank you for it.Please,i would like to know how to engage in palm oil export.i want to engage in the selling of palm oil locally,and the export of the product.Thanks again.
Hi Chigozie,
An article on how to start the export of goods and services from Nigeria would soon be up on the blog.
Do lookout for it.
Thank you.
wow this is a nice article
HOW CAN I START THE BIZ AS I DONT KN WHERE TO GO ABOUT N BUY, A SMALL CAPITAL TO START WITH etc
Hi Ibrahim,
I’d advice you first intern in a palm oil business in Nigeria, so you can learn all you need.
Thank you for asking.
Pls I need more information about the export of palm oil to Africa countries. Kindly reach me on. 07038430981 / 08030595824. Green A. Abbey.
Hi Green,
Please send an email to [email protected]
Do have a great time!
Good day,
Please i want to know how to go about the business because i dont have enough space to store it till when it will be scarce in the market. Your respond will be highly appreciated.
Below are my contact details:
Email: [email protected]
phone no: 08036402623/08054976988.
Regards.
Hi Balogun,
I really don’t understand the exact question.
Well done sir, am into palm oil business.i need a connection on how to import it outside Nigeria.
Please read this article >>> https://startuptipsdaily.com/common-import-and-export-mistakes/
Thank you for asking.
Thanks Stan for this article, I am interested in this business and want to start a large plantation in Benue state.How can I get all the information I need.
Please reach out to the local agricultural association in your state, Hule.
Thank you for asking.
Thanks a lot. I appreciate your info. .shall get back to you as soon as I’m ready for this business for more guidelines.
You’re welcome, Onyekachy.
Hello. Thank you very much for your explanations. I am from the Northern part of Nigeria. From Bauchi State. I need you please to help and explain more exactly on the selling systems per jerry cans and the transportation routes plans as well. I am willing to buy them in bulk and then sell them out to my people in the north. Thank you very much.
Hi Salihu,
That’s quite a lot to type.
We’ll try to get the information available in a different form.
Thank you.
How can I reach you sir
Pls I want to start an palm oil tree plantation but I don’t know how to get a good already germinated see which is treated one, my number 08060024966 , please I need good seed to buy,
Am a dealer of palm oil from Akwa Ibom State, contact me 07037064144. For quality palm oil and palm nuts
@ what rates do you sell
I have palm trees plantation. I want to start processing oil myself. I would need assistant.
where is ur farm sir?
How many hectares did u cultivate in.
@Stan Edom, a very nice write up. Please keep up the good work.
I am also a Palm Oil entrepreneur as well, & i currently have stocks and needs distributors.
Interested buyers can contact me on this no:
08093494864
or mailto: [email protected]
Thanks
This is very insightful to me a starter. Would really need further materials that would help and guide me. Just venturing into the Palm oil business with great opportunities to explore.
@Stan Edom Thanks for your you write up, that was very explanatory…. Please i want to start this palm Oil business i need a guide line on how to about it… email me please on [email protected]
Hi Chukwudi,
Please send an email to [email protected].
Thank you
I am a palm oil entrepreneur.. I supply palm oil to Lagos, Abeokuta and Ibadan. Intrested buyers should contact me on 08164877668.Thank you.
Can I get an info on where to buy palm oil in big quantity
Contact me CHIBUIKE on 09033177386
Please, i want to know more on how to start a palm oil business kindly reach me on my email [email protected] thank you
Thanks, your information is very educative. This had been my plain to establish oil palm business, trying to figure out how to go about doing it,until ,i came in contact with your information why reaching.
Hi Mr Stan, I need a business plan for Palm oil business comprises the supply chain.
Please send an email to [email protected].
Thank you.
Pls i need a good business plan on how to start up a good palm oil processesin mill
Thank you for asking, Bayem.
Please send an email to [email protected].