How to start vegetable oil business in Nigeria

How to start vegetable oil business in Nigeria.

The present production level of Vegetable Oil in Nigeria cannot meet the ever-increasing demands of Nigerians for high quality vegetable oil. Recently, a ban has been placed on the Importation of Vegetable Oil into the country by the federal government with the aim of encouraging local production and marketing of vegetable oil in the country.

To go into the production of Vegetable Oil therefore, you need a well-prepared business guide. This vegetable oil business guide has thus been prepared to help you gain useful insight into the nitty-gritty of vegetable oil business in Nigeria.

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The market for vegetable oil is widespread. Nigeria has a populace of more than 140 million people and an expected national population development/growth rate of 5.7% per year. It has a normal monetary development rate of 3.5% for each year in the past five {5} years. Nigeria thus has a substantial market for vegetable oil.

Vegetable oil business is business of many parts. The cake gotten as a by-product from delivering vegetable oil from soya-bean is utilized for domesticated animals. Particularly for steers, sheep and poultry.

vegetable oil business

Start-up cost for vegetable oil business in Nigeria

Vegetable oil production business is a lucrative business you can do either on medium scale or large-scale basis. You need a completely automated vegetable oil extraction mill for this. Startup capital falls between 10 – 15 million Naira.

This will cater for:

  1. Land
  2. Equipment acquisition
  3. Installation
  4. Vehicle and operational cost
  5. Furniture and so forth

How Gainful is Vegetable Oil Extraction?

The following is a cost/benefit for 500 liters of vegetable oil production

1 ton of groundnut seed produces 500 liters of vegetable oil – 42 kg groundnut cake – 40 kg groundnut slop

Cost of 1 ton of vegetable oil = 200,000

75 cl of vegetable oil = N300.

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Now, let’s do the calculation:

Let’s say you want to be milling vegetable oil at the rate of 3.5 ton per day. Estimation on our feasibility report shows that a gross interest of 3,000,000 every month is possible with this. When you take care of the cost of labour, fuel, transport and staff welfare, you would most likely be left with a whopping 800,000.

A Standard Business Plan Template on Vegetable Oil Processing business

Conduct Proper Researches

All businesses before they are set up require that one completes a careful research. It helps in furnishing you with adequate information on the business. Maintaining a fruitful business implies that you must know how things are composed. You should know the different organizations that are presently in the business, how they have possessed the capacity to flourish, and how you can fit in also.

In this way, in beginning a vegetable oil processing company, you ought to discover the following:

  1. the different usefulness of vegetable oil,
  2. what qualities are best,
  3. when can groundnuts be planted, and reaped,
  4. how might it be prepared, and so on.

Your exploration will likewise incorporate discoveries about the vegetable oil processing organizations that exists and so on.

Go Learn the Skill on vegetable oil business

You can’t simply get up one morning to choose to go into vegetable oil production business without having the requisite skills to do so! No! for success, you must have sufficient knowledge on everything involved in vegetable oil production business and marketing. Subsequently you must set aside ample time to learn the trade thoroughly.

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Is there is a vegetable oil production business that you know or that exists in your vicinity already? you may consider going to work there as a volunteer. You can also work as a laborer to be paid. One of the benefits of this is you would get firsthand involvement on how things are running there. you can also learn how to apply it to your own business.

Pick a Name and Register Your vegetable oil business Company

Any business that needs to be considered important must be registered with the proper organs of government. It is essential that you must pick a fitting name for it too. Then, proceed to enlist it, just like any other businesses, with the Corporate Affairs Commission of Nigeria (CAC).

Produce a Business Plan for your vegetable oil business

Business plans are one of the relevant strides that any business person should take. Along these lines, you must set up all measures.

Don’t know how things like a business plan functions? then you may consider employing an expert business essayist. He/she might have the capacity to disclose to you the data that is required in the template.

Additionally, haulage services are required in your vegetable oil production business plan.

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Pick a Location For The Vegetable Oil Business Company/Business

Your business location determines how far you will go, as it goes on to incorporate other things like movement of people, customers, and machines. Then again, if you choose to site your business in a mechanical zone for example, make sure that you do not bring infect the area with contaminants into the area.

State clearly your genuine intention for space acquisition. This will help your landlord/agent to make available sufficient space for every one of your machines. Also inclusive are your equipment to be utilized.

Get an Operating Permit

It is a great thing that you have gotten your authentication of enrollment as a business at this point. The following thing that is required of you to do is acquire an allow. This would be from food regulations company like NAFDAC. Why is this important, you may inquire?

This is important because these bodies need to make sure that you have all that is expected to begin a vegetable oil processing company.

Get Funding For Your Vegetable Oil Business

It is important that you have enough cash to maintain this sort of business. This is on the grounds that vegetable oil processing business is an extremely lucrative business. It comes with heaps of profits. It is also good for you to consider getting a credit or loan from a financial institution like bank.

In the event that you have family and companions that can really help you, that is a welcome development. That may likewise be an incredible means of funding.

Hire Workers

Once the business begins to expand, you need to do hire staff and workers to help you. Do take note that you require extremely experienced individuals to help pull things off.

You wish to spare cost, don’t you? then you may have to consider getting some semi-skilled or unskilled laborers too. Notwithstanding, some accomplished ones in order to spare cost.

Test the Market

Since all is set, your next port of call is test the product in the market. By what means would you be able to perhaps accomplish that? You should create the products and test the market to check whether they acknowledge them. You will likewise require input to know locations where you have to roll out improvements to enhance the general quality.

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Setup Your vegetable oil business Website

The importance of owning a website to help push businesses can’t be over underscored. This is fundamental so you can publicize what you do. You can do this by means of pictures and explanations. with the costs joined, then you can be certain of an accomplishment. In this way, you will require an expert web specialist to help you pull things off.


You should put a high respect on publicity and advertisement. Most business have blown in light of the fact that their few methods for ad have truly worked.

Print leaflets and fliers, set out on street. Share them in the open markets, shopping centers and what have you.

Likewise, TV and radio adverts wouldn’t be excessively a showcasing system being that you are taking a move at your brand picking up grounds soon.

Those are some fundamental tip that is expected to begin your vegetable oil processing company.

What’s more? set aside a few minutes from time to time to drill your workers. This will help maintain a standard quality in the business.


Palatable vegetable oil will be oil delivered from any of the eatable oil bearing seeds. Its best if these exist in nature. A significant number of these seeds are delivered in substantial amounts in Nigeria.

Among them are: groundnut, oil palm natural product, soybeans, cotton seed, sesame seed, melon seed, and so forth. This compose concentrated on the processing. They require groundnut into oil and cake.

The production line of oil from groundnut is: seed planning, seed squeezing/oil extraction and filtration. An average vegetable oil mill has the accompanying offices:

  1. decorticator,
  2. cooking pot,
  3. child boiler,
  4. oil expeller and
  5. channel press.

what does a little/medium scale motorized vegetable oil mill for?  the start-up capital is between five to six million naira. This will take care of the expense of land and construction. Also inclusive are furniture, acquisition and establishment of apparatus. Lastly, vehicle and operational costs.

Month to month cost of work, staff welfare, fuel, and transport won’t surpass N800,000. Offering your created vegetable oil won’t be a troublesome thing. Yes, you can get a considerable measure of merchants paying ahead of time for your products. This starts the minute you begin production.



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