How to start palm oil business in Nigeria

What is Red Palm Oil?

Red palm oil is a natural oil extract from palm tree fruit. You and I know the importance of red palm oil in Nigeria. No home that doesn't cook with it. It is generally accepted and widely used, not only in Nigeria but around the world. 

·       Before I proceed, I have palm oil of good quality in large quantities, if you want to buy please feel free to call me: 08161684343 / 08060503032. The price is relatively cheap as we’re the producers

This business is one of the most profitable businesses I have ever seen. It has little or no risk at because you can never run into loss unlike many other businesses that are full of risk. As part of my determination to help people and impart lives positively, this article will focus on how to start palm oil business in Nigeria.

Red palm oil Benefit and Uses:

Using palm oil for cooking has greater health benefits over the vegetable oil as it is said to have high concentration of vitamin E in the finest proportion. Your body tends to get better health benefits as a result of the vitamin E present in the red palm oil rather than taking a commercial vitamin E capsule. It is also rich in carotene and possesses strong healing power.

Palm oil is also used by big manufacturing industries for ice cream, margarine, vitamin supplement, cosmetics, personal care, and toilet soap manufacturing etc. So we can see there is a big market for this farm produce and that makes it a business with absolutely no risk because you can never run into loss no matter how terrible the economy may be, provided you buy quality product at the right time.

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How to start a palm oil Business:

There are two seasons for palm oil business which are the high season; when the commodity will be cheaper and low season; when the price will go up.

You can buy the commodities for as low as N4000 during the high season, the price does vary every year but that is the average price you can get it and that is how it has been for the past 3 years. The high season is between the month of February and April and so if you want to do this business, you must have gotten your capital ready before this time, so as to be able to buy immediately the price drops for storage.

The low season start immediately after the high season but you will have to wait till around July or August before you can sell. The best time to sell the commodities is around November but if you are in need of the money for another business or you cannot wait until that time, then you can sell in July or August.

There is a method we use as an experienced in this business and the method is simple. We buy and sell up to two or three times in a year depending on the market survey and make over 100 percent on investment at the end of the business year. But I will advise beginners to follow the first method I explained above, although, the returns on investment may be less than 100% but you will be on the safe side.

steps to start palm oil business in Nigeria:

Source for capital early: Get your capital ready as early as February so that you can buy palm oil at cheap prices, so that you will be able to maximize your profit.

Get a store room: you will need to get a place where you will keep your commodities after purchase. If you have a spare room in your house that will be ok, if not, you may need to rent a shop to keep your commodities safe.

Buy the commodities: There are several places where you can buy palm oil in Nigeria. But the best quality ones are rare so call me we have it in large quantities for sale. Ensure you buy quality palm oil so that you will not have problem selling them. After purchase, just transport you commodities to your store room for storage.

Storage: Palm oil storage is very simple. All you need are 25 litres kegs that you will use to buy them. You can also store them in drums if you prefer that but kegs are ok. Look for planks and put them on the store room floor before packing the commodities inside. This is done to avoid palm oil from solidifying because it does not like a cold environment especially cement or tiled floor. After that you can then pack the kegs inside the store and arrange them on the planks and on top of one another. 

Wait for low season and sell: The next thing is to wait for off peak season when the price will rise and then bring out the commodities for sale. Depending on your area, you can just look for a vehicle to pack the commodities to a major market where this can be sold in large quantities and you get paid immediately.

If you’re in major cities like Lagos, Ibadan where we have many food companies, you can contact the companies to supply the commodities, but make sure, you’re paid before you supply.

You can also sell to the people that trade with palm oil (wholesaler) and get your cash, remember not to sell on credit. Palm oil is a highly sort after farm produce and you will always get market for your commodities

What are you still waiting for? You should start planning how you will get enough capital to do this business as we approach another peak season. Try all your best to get enough capital because the higher the investment, the higher the return. You can invest up to N500, 000 or even  1million naira depending on the amount you’re having.

Meet me in the comment section for any question and I will be glad to answer as soon as possible.

If you know any places where this product could be gotten cheap and in great quality, tell us using the comment box below.