In a country like Nigeria where the economy is quite unstable. The source of income can’t be limited to just one. You may be wondering what other business you can venture into to generate more resources. Well, if that has been you, you should now know that the palm oil business in Nigeria is one of the rare businesses that you can do and make it big.
In addition, not so many people are paying attention to farm produce. We can lay the blame on the continuous advancement of technology.
An Overview of Palm Oil Business in Nigeria
As surprising as it sounds, not everyone pays much attention to farming in Nigeria. I will advise that after going through this blog post about the palm oil business in Nigeria. Ensure you take the bold step to go into this business activity. I assure you that your investment won’t be in vain. The palm oil business in Nigeria is so lucrative that you can even become an exporter of it to the neighboring countries. Nigeria as a country is so rich in several natural resources and I dare to say that palm oil is one of them even though it doesn’t get the enough recognition it should.
Aside from the production of oil, the palm tree is monocotyledonous with several benefits aside from oil. With a palm tree, you can get palm kernel, wood, and planks, broom is also a product of a palm tree, palm frond is what is used in making local mats, and a whole lot of others. So, getting or having a palm tree plantation comes with a lot of benefits.
Just in case you are wondering how to start up a palm oil business in a country like Nigeria, well, you are at the right blog post. I will give you a guide on the easiest way to start up a palm oil business as an individual. Also, if you have the intention to start up a palm oil business company in Nigeria, you will get in this post. Without further ado, let’s look at the easiest way to start a palm oil business in Nigeria.
How To Start a Palm Oil Business in Nigeria
The production of palm oil is an utmost source of income for several families in Nigeria. Unfortunately, most of the producers are found in the rural parts of Nigeria. If you reside in the city and wondering how possible it will be to run a palm oil business in Nigeria, here is how to do it.
- Gather enough money.
- Look for fertile land and buy enough quantity of it.
- Get to the market and buy palm seedlings as much as you and plant.
The above list is just the basic way to sketch out your board when you plan on embarking on this business. The three items listed above may look a bit difficult to get, well what if I tell you that there alternating options to each of them? Well, we are about to discover them, just keep reading through this post.
Requirements To Start a Palm Oil Business in Nigeria
There are three major requirements to meet before you can start a palm oil business in Nigeria, and there is a fourth that we won’t explain in this post. That number fourth is what we call “patience”. You need lots of patients to succeed in the palm oil business, especially in Nigeria. Now, we move to the three basic requirements that you must meet before you can venture into this line of business. There are:
Otherwise known as capital, you need money to succeed in a business plan. No matter how little your business is, you need money to carry it out. Now for palm oil production in Nigeria, you need lots of money. It all depends on how large you want this business to be for you. But if you are looking for a company standard, you need to budget about five million Naira to start this business. However, you may still want to consult a business strategist for a more clarifying analysis.
Mode Of Transportation
Another real factor to consider before going into this business is the cost of transportation. It takes 4-5 years for a palm tree to grow and yield forth fruits in a good land. So, while you are at getting the land ready and planting your seed. You also need to start planning how you will want the products to be transported. If you own a vehicle that can carry a large number of goods to a reasonable distance, that will help cut the cost price of transportation.
The alternate way to transport your goods is by opting for vehicle hire. Lots of people who are in the palm oil business in Nigeria do not own their vehicle, you can simply hire a vehicle to transport the products while you pay the driver.
Business Associates (Suppliers/ Retailers)
I tagged this set of people as your business associates because they are the most important set of people you can’t afford to lose. With a supplier or retailer, you are sure your oil business will continually grow. They are the ones with the responsibility of getting the oil to the consumers.
You also need reliable sources for your palm oil business who will provide you with the necessary equipment, palm seedlings, and every other thing that comes next.
The Right Time to Go Into Palm Oil Business In Nigeria
If you read very correctly, you will notice where I mentioned that it takes approximately 4-5 years to have a palm tree fully grown. However, the question will be what time of the year is right to plant palm fruits. Well, the time differs from country to country. But for a person living in Nigeria, it is better to plant palm fruit seedlings during the rainy period.
Where To Buy Palm Seedlings in Nigeria
There is no other place to get a palm seedling other than a local market around you. It may look like nobody will sell it around, but you never can know until you check and ask questions. The palm seeds usually come in different sizes. You have freshly got your palm fruit if you want to get good results on your plantation. The reason is that they have a short lifespan.
It is equally advisable that you test your palm seed before planting them. The easiest way to check is by putting one of the seeds into a bowl of warm water. If the seed floats on the water, that’s an indication that the seed is not good for planting. But if it sinks, that means you can plant it.