12-11-2025, 09:05 PM
STEP 1. Decide the Palm Oil Business You Want to Run
Your choice depends on how much you can invest.
1. Palm oil trading
Suitable for small or medium capital.
Buy directly from farmers or processors, then supply retailers, supermarkets, restaurants, or wholesalers.
Expected profit is around ₦500 to ₦1,500 per litre.
2. Palm oil storage
One of the most lucrative options.
Buy during the cheap period from February to May, keep it for 3 to 8 months, and sell when prices rise between September and December.
Profit can reach 30 to 80 percent depending on the year
.
3. Palm oil processing
Requires bigger capital.
You buy fresh palm fruits and convert them to oil.
Needs equipment, space, and labour.
Profit margin is usually 40 to 100 percent.
STEP 2. Do Your Market Research
Before you begin, find out the following:
Who will buy from you
What grade of oil they prefer
Current buying and selling prices
Available competitors
Transport options
Visit local markets, palm oil mills, wholesalers, and supermarkets to get real information.
STEP 3. Secure Capital
Starting points:
₦50,000 to ₦200,000 for small trading
₦300,000 to ₦1,000,000 for storage
₦2 million to ₦10 million for processing
STEP 4. Locate a Reliable Supplier
Buy from producing communities like Edo, Ondo, Akwa Ibom, Cross River, Delta, Imo, Abia, Enugu, Bayelsa, Rivers, and Kogi.
Palm oil mills are cheaper than open markets.
Build relationships so you always get good prices.
STEP 5. Prepare Proper Storage
Palm oil can spoil when stored wrongly.
Use airtight plastic drums or kegs.
Keep them in a clean and cool place.
Avoid sunlight.
Containers must not contain water.
For storage business, use 25 litre or 50 litre kegs. Well stored oil can last 9 to 12 months.
STEP 6. Know the Buying Seasons
Prices move sharply during the year.
Cheap periods: February to May and after main harvest.
Expensive periods: September to December, Christmas season, and heavy rain months.
Buy when it is cheap and wait for the high season.
STEP 7. Plan Transport and Logistics
Think ahead about how you will move products from villages to your store and then to customers.
Prevent leakage during transit by using sealed drums, thick kegs, or cartons for retail packs.
STEP 8. Register Your Business When Necessary
You can start unregistered, but once you begin supplying supermarkets, restaurants, or food companies, you will need:
CAC registration
NAFDAC approval for branded retail
A simple record keeping system
STEP 9. Begin Selling
Possible buyers include:
Market traders
Retail shops
Restaurants
Soap makers
Cosmetic producers
Exporters
Online customers on Jumia, Facebook, WhatsApp, and TikTok
STEP 10. Promote the Business
Use WhatsApp status, Facebook Marketplace, TikTok videos, Instagram, WhatsApp Channels, and flyers around markets.
Palm oil remains one of the most rewarding agribusinesses. Demand stays high throughout the year for cooking, cosmetics, soap production, food processing, and export.
The business can significantly improve your income and the storage model does not require daily labour, making it a strong side hustle or extra source of revenue.
Your choice depends on how much you can invest.
1. Palm oil trading
Suitable for small or medium capital.
Buy directly from farmers or processors, then supply retailers, supermarkets, restaurants, or wholesalers.
Expected profit is around ₦500 to ₦1,500 per litre.
2. Palm oil storage
One of the most lucrative options.
Buy during the cheap period from February to May, keep it for 3 to 8 months, and sell when prices rise between September and December.
Profit can reach 30 to 80 percent depending on the year
.
3. Palm oil processing
Requires bigger capital.
You buy fresh palm fruits and convert them to oil.
Needs equipment, space, and labour.
Profit margin is usually 40 to 100 percent.
STEP 2. Do Your Market Research
Before you begin, find out the following:
Who will buy from you
What grade of oil they prefer
Current buying and selling prices
Available competitors
Transport options
Visit local markets, palm oil mills, wholesalers, and supermarkets to get real information.
STEP 3. Secure Capital
Starting points:
₦50,000 to ₦200,000 for small trading
₦300,000 to ₦1,000,000 for storage
₦2 million to ₦10 million for processing
STEP 4. Locate a Reliable Supplier
Buy from producing communities like Edo, Ondo, Akwa Ibom, Cross River, Delta, Imo, Abia, Enugu, Bayelsa, Rivers, and Kogi.
Palm oil mills are cheaper than open markets.
Build relationships so you always get good prices.
STEP 5. Prepare Proper Storage
Palm oil can spoil when stored wrongly.
Use airtight plastic drums or kegs.
Keep them in a clean and cool place.
Avoid sunlight.
Containers must not contain water.
For storage business, use 25 litre or 50 litre kegs. Well stored oil can last 9 to 12 months.
STEP 6. Know the Buying Seasons
Prices move sharply during the year.
Cheap periods: February to May and after main harvest.
Expensive periods: September to December, Christmas season, and heavy rain months.
Buy when it is cheap and wait for the high season.
STEP 7. Plan Transport and Logistics
Think ahead about how you will move products from villages to your store and then to customers.
Prevent leakage during transit by using sealed drums, thick kegs, or cartons for retail packs.
STEP 8. Register Your Business When Necessary
You can start unregistered, but once you begin supplying supermarkets, restaurants, or food companies, you will need:
CAC registration
NAFDAC approval for branded retail
A simple record keeping system
STEP 9. Begin Selling
Possible buyers include:
Market traders
Retail shops
Restaurants
Soap makers
Cosmetic producers
Exporters
Online customers on Jumia, Facebook, WhatsApp, and TikTok
STEP 10. Promote the Business
Use WhatsApp status, Facebook Marketplace, TikTok videos, Instagram, WhatsApp Channels, and flyers around markets.
Palm oil remains one of the most rewarding agribusinesses. Demand stays high throughout the year for cooking, cosmetics, soap production, food processing, and export.
The business can significantly improve your income and the storage model does not require daily labour, making it a strong side hustle or extra source of revenue.