SETTING UP A GROUNDNUT OIL MANUFACTURING BUSINESS
Market Prospects
Groundnut oil production business in Nigeria is a very profitable project with huge export potential. Besides, the government of Nigeria has been very supportive of the edible oil production projects in recent years. In order to seize this chance, you can also firstly initiate the groundnut oil production business through setting up small or medium scale oil mill based on the desired output and project cost.
The country is the largest groundnut producer of the continent and the fourth in the world. Nigeria produces around 1.5 million metric tons of groundnut yearly and derives its oil, which is an extremely nutritious product. In Nigeria’s lands, you can produce 5 metric tons of groundnuts per hectare. From one ton of groundnut, you can derive 500 liters of oil. The price of the oil depends on the currency and the season, however, a liter of oil is close to 1$ in Nigeria.
Raw Materials
The primary raw material is peanut. Groundnut is mainly grown in the northern part of Nigeria, West Africa in large quantities compared to other regions of the country. The below-listed states account for about 83-88% of the production, and they are; Kano, Kaduna, Taraba, Bauchi, Bornu, and Adamawa.
Equipment Needed
The main processing machinery includes seeds cleaning equipment, de-hulling machine, oilseeds cooker or roaster, peanut oil press, filter press, oil refinery machine and oil filling or bottling device.
Distribution/ Marketing Options
The envisaged plant can set up its own sales/marketing team to engage in a sustained one-on-one sales drive. Advertising options could be based on usage of flyers and referrals,
Manpower Requirement
A total of 15-25 staff is required in the short-term operations of the plant. They include Skilled Worker -4, Semi-skilled Workers-10, Salesmen-1, Driver-cum-salesman-1 and Security Operative – 1
Estimated Start-Up Cost (Small Scale): – N10, 500,000 – N15,500, 000.00
Potential Profit:- N 15,000,000 – N22,000,000.00 per annum
Estimated Start-Up Cost (Medium –Large Scale): – N25, 500,000 – N65,500, 000.00
Potential Profit:- N 35,000,000 – N 75,000,000.00 per annum
This profile, or any similar one, can be developed into a bankable proposal for any interested investor. For further clarification, do contact our offices in the address stated below.
By Thomas Tayo Oyewole
He works with Michael Stevens Consulting (MSC).
MSC is an Accredited Bank of Industry (BOI) Services Provider (BDSP)
For further information contact:
Mobile: +234-803-3962-942, +234-903-6959-658
oyewole.tayo@michaelstevens-consulting.com and copy info@michaelstevens-consulting.com