Why palm oil business is lucrative in Nigeria

The palm oil business is one of the lucrative businesses in Nigeria because of its diverse usefulness and the huge profit involved. In Nigeria, palm oil is one of the essential needs for cooking most meals.

An aspiring entrepreneur must be able to look wide and deep when investing in a business. Most palm oil business owners invest in this type of palm oil business because it is the cheapest and easiest part of the business. This business involves the buying of palm oil in large quantities and selling to consumers.

To get more profit from this business, you can store the palm oil in a cool place for months, then sell them during off pick period when the supply of palm oil has reduced and demand is high.

How to start the business

You can start with as little as N200, 000 seed Capital while you can gain 100 per cent profit within the first month of trading.

Secure a Shop – You will need a shop or any safe place for storage. If you have your own house, that will be nice, just dedicate one room for the storage.

Look for Places to Buy – There are many places you can get palm oil very cheap and in great quantity in Nigeria. It is available in bulk in various parts of Ondo State. It is also available in Edo State and Ebonyi states.

Transport Your Goods – If you have your own truck or van, that will be fantastic but if not, you would have to make do with hiring. Buy everything you want to buy, get a truck to transport it to your base and store it in your shop.

Profitability

Palm oil is one of the commodities constantly in high demand in Nigeria. There is never a time it wouldn’t be a hot cake in the market and it is consumed at the same rate as rice and garri. Palm oil is currently sold in Lagos and other major cities across the country at N26, 000 for 25 litres but if you go to the farm areas where it is produced in quantity, you can get the same 25 litres at N16, 000.

There are times in the year when you may get this product at N13, 000– N15, 000 per 25 litres. If you can get it in quantity during the time of surplus and store it for some months, you will sell at 100 per cent profit. It is usually surplus around December to April and sells at the highest around July to September.

If you invest N500, 000 and wait for 4 months, you will most possibly make N500, 000 or above, depending on how much effort you put in.