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In this post, I want to share a piece of very important information on the palm oil business in Nigeria. Since I publish a post about palm oil I have been getting emails asking how one can start a palm oil business in Nigeria.
Let’s start by saying that every business is lucrative, it depends on how you go about it such as your skills and competencies. In as much the market competition isn’t too much and you have a great marketing strategy you’re on the rocket. So is the palm oil business as well.
The palm oil business is a lucrative business with low competition. The product is one of the most consumable products in Nigeria. It’s also used for different products of cosmetics and other food products in the world. With the high rate of demand, you can’t be wrong about the palm oil business. At the time the question gets how do I start this business and how much do I need to start the palm oil business. The truth is that starting isn’t hard and the amount you needed to start can be any amount, no amount is going to be too much. I feel the reason people ask how much amount will be enough to start the business is that there’s not much capital on the ground making room for considering the lowest amount to start with. Even if you have 5 billion naira to start the business it won’t still be too much. The more capital you put in the better for you in this business. So let’s do it this way, how much capital do you have to start with?
To start this business your capital shouldn’t be lower than 100k however there’s even a way you can start a palm oil business without capital, I’ll discuss how to start without money in my next post.
So with 100k, you’ll be able to start this business very well. There are two major areas in the palm oil business that will benefit you very well. You can either be a producer or a reseller. A reseller is a person who buys from a producer and distributes across the market. In the Palm oil business, you do not need NAFDAC approval to start the distribution of palm oil. With 100k-300k you can go to local producers in the village, sort for quality good looking oil, buy a large amount of oil such as 100k worth over 300 liters, and take it to the market. You can decide to keep them for some time awaiting when the palm oil price rises and resell or take them to those who sell at wholesale price and sell to them for profit.
You can as well choose to be a producer, this means you produce and sell to bulk buyers. To be a producer you need production experience and also more experience in producing quality oil as that’s what will sell faster and also better. What you need again is a good amount of startup capital.
So where do you start, my suggestion is to try to speak with bulk buyers, get 2-5 bulk buyers and seal business with them. Then visit villages to sort for local producers. Buy from them and supply to the bulk buyers and make a profit.
For those with a reasonable amount of startup capital, good news if you have up to 5m or more for this business. You can start producing palm oil for better profit. To start production you’ll need to acquire knowledge.
For those with no experience but who have a good amount of money to invest, I’ll be starting my production next year 2023. My factory is under construction currently. You can contact me and let’s discuss investment.
My next post will be about how you can start a palm oil business without capital. I’ll be giving proper details on it. If you’re new here welcome to my business blog. All we do here is how every member can become successful in life. I share opportunities daily. Kindly subscribe or visit this blog daily to see more opportunities to make it in life.
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