Palm Kernel Oil Business in Nigeria- Detailed Guide

Palm Kernel Oil Business in Nigeria is a GOLD MINE! This is because the demand for palm kernel is very high and the production in Nigeria is very low. Did you know that Nigeria imports Palm Kernel Oil? This is very strange! History has it that in the early 1960s, Nigeria’s palm oil production accounted for 43% of the world’s production, but nowadays it only accounts for 7% of total global output.

Another reason Palm Kernel oil business in Nigeria is a gold mine is that it can create about four sources of income  in other countries like Malaysia. Products derived from palm kernel nuts include palm kernel oil, palm kernel cake, palm kernel sludge and palm kernel shell {crushed} which is used as a bio-fuel.

Palm kernel oil {PKO} is derived from the milling of cracked palm kernel nuts while palm kernel cake is a bye-product gotten from the processing of palm kernel oil. It forms a very important part of the feeds of animal.

Why Choose Palm Kernel Oil Business in Nigeria?

Here is an extract from Punch Newspaper of an interview with GBENRO ADEOYE, an oil palm researcher and investor in mechanization of palm oil production in Nigeria:

There is more demand for Palm Kernel Oil and what we are producing is far lower than what we need. Even if those going back to agriculture plant now, it will still take three to four years before they start fruiting; there is no magic about it. And the demand is increasing. Now if you want to import, it is difficult to get forex to do that. So some of the companies that need palm oil to make margarine and so on now have to source for it locally so that they can buy in naira instead of importing from Malaysia. And also, it is seasonal and we are in off-season now. Maybe between February to July/August (its season), next year, the price will go down. But at this moment, it is scarce. People need it for food and raw materials and there was nothing to store up when it was in season.

The simple truth is that anyone who invests in Palm Kernel Oil business in Nigeria now will not only make, he is make it very big. Here is a claim from one Nairaland user about Palm Kernel Oil business:

In two months, i made over 3 million naira supplying palm kernel, with an initial start-up capital of N684,000. There I was thinking to myself, no wonder its call “old man’s business”.

Also consider that fact that palm kernel oil Business in Nigeria is a multi-product business. For instance, palm kernel oil is used for the production of cosmetics, soap,  and for animal feeds?

How To Start Palm Kernel Oil Business in Nigeria

Here are some things you should consider before starting Kernel Oil Business in Nigeria

  1. Decide if You Want to Go Small Scale, Medium Scale, or Large Scale. To start the business small scale, you need between N100,000 to N250,000. For medium scale you need N300,000 to N500,000. But for large scale production, you need up to N2,000,000.
  2. Acquire a land or Lease a land. If you have a land already, fine. But if not, keep in mind that oil palm flourish more where there is a lot of water underground. You may also need to consider the idea of talking to the traditional rulers or elders around first, else you pay the villagers around the place to have access to your farm.
  3. Look for Funds. You need funds to clear the land, buy palm seeds, manage weeds and rodents, and pay the workers that will be caring for the plants. You need funds to pay people that collect the nut, people that break and pick the nut, and people that extract the oil. You need funds to install a standby generator that will power your kernel processing machines. And funds to install Tanks and some Drums to store your product. You may need more than N2,000,000 to really get started.
  4. Get the machinery. The machines you need for Kernel Oil Business in Nigeria include Nut Crusher used for crushing the palm-kernel nuts and reducing it to smaller sizes so as to ease the oil extraction process. Electrical Seed-Fryer which is used for Frying or roasting the crushed nuts. Oil-Press used for pressing the heated nuts and expelling the oil content of the nuts via the oil exit chamber, while the cake is collected via the cake exit

Starting and running a palm kernel oil business in Nigeria is not easy like every other business, but the rewards are worth it. So make your plan and see if you can venture into Kernel Oil Business in Nigeria.

Skill & Career Team

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