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How To Start Palm Kernel Oil Production Business In Nigeria – Step By Step

Dear friend, I believe you are here in search of a profitable business in Nigeria that will continuously put money in your bank account. If YES, then urge you to read further because in this article you will discover the income generating opportunities in Palm Kernel oil production business in Nigeria

The oil palm tree is one important cash crop in Nigeria whose fruit yields two distinct oils—Red palm oil derived from the outer parts of the fruit, and palm kernel oil derived from the kernel.

The demand for Palm kernel oil in Nigeria is on the increase, because it’s one PKO is a cheap source of oil for soap manufacturers ,bio-fuel, cooking oil, vegetable ghee, Shortenings, Margarine, CBS,CBE, ice cream, dough, creaming, coating, and other specialty fats.

How To Start Palm Kernel Oil Production Business In Nigeria – Step By Step
Also, Palm kernel cake a byproduct of Palm kernel oil extraction is a high fiber used in Livestock feeds production. Among other similar feedstock’s palm kernel cake is ranked a little higher than copra cake and cocoa pod husk, but lower than fish meal and groundnut cake, especially in its protein value.
However, there is still a wide demand-supply gap in Palm Kernel oil production business in Nigeria leading to a big market opportunity for interested Investors to cash in.
Below is current price for Palm kernel products in Nigeria.
A ton of Palm Kernel Nuts = N 60,000
A ton of Palm Kernel Oil = N 230,000
A ton of Palm Kernel Cake = N 30,000
with a 5ton/hour Palm kernel oil production business, one can make millions of Naira monthly.
Below are the START UP REQUIREMENT FOR PALM KERNEL OIL PRODUCTION BUSINESS IN NIGERIA.
FACTORY SPACE. Chose a favorable location where you can setup your Palm Kernel oil extraction business easily and carryout 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 Kernel Oil production machines and equipments, production raw materials, office and changing room for your workers.
With at least N1million you can buy a piece of land and build your Palm Kernel oil production factory in Nigeria.
BUSINESS REGISTRATION: To make your Palm Kernel oil production business a legitimate business in Nigeria, 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.
BUSINESS PLAN/FEASIBILITY STUDIES:
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 Kernel Oil production business in Nigeria. Please Contact Us if you need a BUSINESS PLAN or FEASIBILITY STUDIES for this project.
LABOUR
You need factory workers, marketers, driver and other relevant staffs to assist you in running the day to day activities in your Palm kernel Oil production business.
POWER SUPPLY
For electricity supply you need public power supply from PHCN, though not reliable. You will also need a stand by generator say 50KVA and above in case electricity supply from PHCH fails.
MACHINE AND EQUIPMENT
Below are list of machines and equipment for Palm Kernel Oil Production process.
Oil Spiral Press Machine (5ton Capacity)
Oil Filter
Separator
Palm Kernel Cracker
Sludge Presser
Palm Kernel Roaster
Oil Storage Tank (2000liters Capacity)
Oil Dispatch Pump
Weighing Machine
With the total sum of N11million, you can purchase a locally fabricated Palm Kernel Oil processing machines and equipment that can produce 5tons/hour.
However, if you can’t afford a 5ton capacity machines and equipment, you can lower the production capacity to say 2tons,3tons and then discuss with the Kernel Oil Machine fabricator on possible cost reduction.
RAW MATERIALS NEEDED
The major raw material needed in Palm Kernel oil production process is the Palm kernel nut.
Palm kernel a byproduct from the milling of palm oil, it can be sourced from oil palm plantation scattered all over southern part of Nigeria.
Palm kernel nut 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.
START UP CAPITAL (FINANCE)
To be very frank with you Palm Kernel oil Production business in Nigeria is capital intensive. To setup a 5ton capacity Palm Kernel oil mill you need a minimum startup capital of about N20million. 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.
PRODUCTION PROCESS FOR PALM KERNEL OIL EXTRACTION
STAGE ONE: Palm Kernel Nut Crushing.
The first stage in the production process of Palm Kernel Oil involves the use of a crushing machine to crush the dried palm-kernel nuts to smaller sizes for easy oil extraction process.
STAGE TWO: Roasting the Palm Kernel nut
After crushing all the nuts the kernel is then fed into a Kernel Roasting machine. This process involves heating up the crushed nuts, thereby exciting the oil from the Kernels.
STAGE THREE: Expelling the Oil from the Palm kernel
The roasted palm Kernel is then passed through an Oil Press that compresses the heated Palm kernel nuts and expels the oil content of the palm kernel via the oil exit chamber, while the Palm Kernel cake is collected via the cake exit chamber.
STAGE FOUR: Collection and Storage of the Extracted Oil
The extracted crude palm kernel oil is fed into a storage tank for direct sales or for further refining.
STAGE FIVE: You will need Stainless steel Tanks and some Drums to store your product.
Note: Below are some Palm Kernel oil production business terminology you will need to know
Palm Kernel (PK): This is the seeds gotten after production of palm oil
Palm Kernel Nut (PKN): This nut is what you get after breaking the hard shell of a palm kernel
Palm Kernel Oil (PKO): The crude or refined oil extracted from the palm kernel nuts.
Palm Kernel Cake (PKC): The byproduct (residue) of Palm kernel oil extraction process. It is mostly used in livestock feeds production due to it’s high nutrients content.
Palm Kernel Sludge (PKS): This is also another residue collected from palm kernel oil.
MARKETING/ADVERTISEMENT
Marketing your palm kernel oil and PKC aggressively after production is very necessary if you must make profit from all the hard work, time and resources put into the business.
So, you will need to introduce your products to industries in Nigeria that uses palm Kernel oil as a major source of raw material for production.

How To Start Palm Kernel Oil Production Business In Nigeria – Step By Step

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I believe after reading though the article above, you have come to understand that Palm kernel oil production business in Nigeria is very lucrative. The demand for the products locally is massive. And if you have excess working capital to produce large quantity of Palm Kernel oil continuously, then you can start exporting the product to other countries of the world.
Remain blessed, as you decide on what to do with this money making information you hand in your hand.

11 Responses to How To Start Palm Kernel Oil Production Business In Nigeria – Step By Step

  1. Ugo says:

    This is a comprehensive write up. I love to have your contact. Thank you.

  2. James says:

    I like the business,i have just #7,000,000 what can I do?

    • Izu says:

      If you have land, great! If not, you must look for a plot or half plot(rent or purchase) in an area with constant electricity!This is very key. Next is your machines. This is the most important factor. Alot of quacks are duping people in the name of consultants. Before you purchase any expeller(local) please exemine very well. it is important to note that oil content after crushing must be less than 8%. I would recommend a foreign machine from Malaysia but your budget can’t afford it.

  3. pls how I do this business with 8million naira all inclusive from land purchase to production

  4. Henry Praiz says:

    Hello!! I would love to have your contact…..reach me via this mail – henryblaizzz@gmail.com

  5. ANOCETS says:

    This is a very cool write up.. I would love to discuss more with you Anocetsfarm@gmail.com
    Thanks

  6. Osondu says:

    Do you have where i can sell my products if i go into this business because that is key for my profit

  7. Edwin says:

    Can’t a generator be used where electricity is not constant? What is the recommended size of generator for a 5ton per day machine.

  8. Ochuko kemefa says:

    Hw do I get buyer from my finished product

  9. APARE AKPOZOUGHA says:

    Dear sir
    How much is your complete 5ton palm kernel processing plant?
    Pls add pictures

  10. LEVITE OKEKE says:

    I want start up the business & I have 10million

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