How to start palm oil business in Nigeria

Palm oil is one of the most essential and widely consumed vegetable oils in Nigeria.

It is used in cooking, cosmetics, pharmaceuticals, and manufacturing industries. Nigeria is among the top producers of palm oil in Africa, yet the local demand is still higher than supply, making it a highly profitable business opportunity.

With minimal startup capital, strategic planning, and market knowledge, anyone can successfully venture into the palm oil business—whether through trading, processing, farming, or export.

How to Start Palm Oil Business in Nigeria

1. Choose a Business Model

Decide which aspect to focus on:

Palm Oil Trading – Buy and resell for profit

Palm Oil Processing – Extract oil from palm fruits

Palm Plantation – Grow palm trees and harvest fruits

Export Business – Sell to international markets

2. Conduct Market Research

Understand market demand and seasonal price changes

Identify where to source palm oil at low cost (e.g., Akwa Ibom, Imo, Cross River)

Study major selling markets (Lagos, Abuja, Onitsha, Kano)

3. Register Your Business

Register with Corporate Affairs Commission (CAC)

For exports: register with NEPC, and get NAFDAC/SON approvals if needed

4. Raise Startup Capital

Small-scale trading: ₦100,000 – ₦500,000

Processing: ₦3 million – ₦10 million

Export: ₦1 million and above

5. Source and Store Palm Oil

Buy during harvest season (Feb–May) when prices are low

Use clean, sealed plastic kegs or drums

Store in a dry, cool place to preserve quality

6. Market and Sell Your Product

Sell to households, retailers, food vendors, and industries

Advertise using social media (Facebook, WhatsApp, Instagram)

List on platforms like Jiji, Alibaba, Exporters.ng

7. Grow and Expand

Reinvest profits to increase stock or diversify

Consider adding processing machines or exploring export opportunities.