Step by step instructions to Start Groundnut Oil Production in Nigeria

 Edible vegetable oil is oil comprised of any of the safe to eat oil bearing seeds that exist in nature. Many of those seeds are produced in big portions in Nigeria. Amongst them are: groundnut, oil palm fruit, soybeans, cotton seed, sesame seed, melon seed, etc.

This write up will attention at the processing of groundnut into oil and cake. Although the manufacturing method is nearly the equal for nearly all of the seeds with simply moderate variations withinside the manufacturing line. The manufacturing line of oil from groundnut is: seed preparation, seed pressing/oil extraction and filtration. A common groundnut oil mill has the subsequent facilities: decorticator, cooking kettle, infant boiler, oil expeller and clear out out press. For a small/medium scale mechanized groundnut oil mill, the start-up capital is among 5 to 6 million naira. This will cowl the value of land, construction, furniture, procurement and set up

One tone of groundnut seed produces an average of 500ltr of groundnut oil, 420Kg of groundnut cake, and 40Kg of groundnut sludge. As at last two weeks, the average price of the following is true (in kaduna state):

1tone of groundnut seed = N180,000

1ltr of groundnut oil = N260
 
1Kg of groundnut cake = N160
 
1Kg of groundnut sludge = N100

So if you process 1tone of groundnut seeds, you are likely to get an average profit of N20,000. The oil milling machinery referenced in this write-up has the capacity to process 3.5tone of groundnut per day. Which means an average of N70,000 profit is realisable per day, which translates to N2,100,000 per month. Monthly cost of labor, staff welfare, fuel, and transport will not exceed N700,000.

It should be noted that there is a ban placed on the importation of vegetable oil into Nigeria so as to encourage local investors to go into its production. This gave birth to a very high demand in the country, as the present production level doesn’t meet demand. 

You get dealers paying in advance for your products the moment you start production. Study shows that over 80% of the populace of Nigeria consumes or use vegetable oil and its products.