How To Start Palm Oil Business In Nigeria And Its Potential To Make You Rich
Most people are still unaware of the potential of the palm oil business in Nigeria. Being one of the countries with the best climate for plantation makes Nigeria has palm oil as their largest produce. In 2021, the country produced more than one thousand metric tonnes of palm oil. This figure can be higher when more businesses utilize the available lands and further propel the country’s GDP.
Why Palm Oil Business in Nigeria
In addition to the climate and usage, Palm oil is a business that you can have on a small scale. Most people have this misconception that palm oil is a business for a select few from the elites. But you should know that there are methods for you to participate in the business.
How to Start the Business
The process to obtain palm oil is very straightforward. After harvesting the palm fruit, sterilize it to extract the crude oil, then you can start the next process to transform the crude oil into various products.
1. Set up the capital
The capital varied depending on the business scale. A small lot of plantation may cost much more than purchasing a stock of a palm oil company. But you can double or even triple the money from the income. Many people think that this business is best for families. So you can start raising capital from family and friends’ loans to purchase and run the plantation.
2. Choose the Business sector
Before you start dabbling in palm oil, you should have the business plan ready. So you know which business sector you will enter and profit from.
· Planting or Milling
If you have enough capital to do both, good for you. But the cost of purchasing and running a plantation may be higher than operating a palm oil processing mill. And not to mention storage units and other details.
· Trade the Palm oil
Trading palm oil means you need to be ready with the transportation and storage different from the milling process. Trading also means you’re actively connected with both regional and multinational companies to market your products. Some traders specialize in crude oil while others are in processed palm oil. You should know which niche suits you well.
3. Write a Comprehensive Business Plan
At this point, you’re already doing half of your business plan. But you still have to do more with the market research and competitors. This is crucial since you need to understand the risks and have a solid financial plan to support your business.
4. Register Your Business With CAC
Registering with CAC is a necessity to ensure your business going well. It will allow you to open a corporate account to manage your business finance. It also gives your business legitimacy that you can use to solidify the trust between all parties involved.
5. Start Selling
Even though you choose the plantation or production sector, you still need customers to receive your products. Remember that your advertisement channel depends on the niche you choose.
Having a thorough business plan can help you on exploring the potential of the palm oil business in Nigeria. The niche covers multiple sectors that you can choose to enter. But essentially, it’s a lucrative business that you shouldn’t miss when you have the means to do so.
