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Palm Oil Business Money Spinner in Africa

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Palm Oil business is fast becoming a money spinner 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. The interesting part of this business is that every part of the palm tree (fruits, leaves, trunks, and sap) is used for different things.

Palm Oil Business Money Spinner in Africa

The palm fruits are processed to produce palm oil, the leaves on the other hand are used for roofing homes in rural areas. While the popular palm wine which is the sap is a refreshing and widely loved beverage in Nigeria.

Gone are the days when people think that the only sector to make cool money in Nigeria is oil and gas. Nowadays, industries that are being overlooked are the ones raking in huge profits for the business owners.

An aspiring entrepreneur must be able to look wide and deep when investing in a business. Not long ago, Nigeria was the third-largest producer of palm oil, with over 2.3million hectares (5.7×106 acres) under cultivation.

This article covers everything you need to know about starting and running a successful palm oil business in Nigeria. Additionally, you will also learn about the different areas of the palm oil business so you can choose the best that works for you depending on your start-up capital.

Palm Oil Business Defined

Palm oil is an edible vegetable oil derived from the fruit of palm trees and it is reddish in colour. It is a native oil with rich components found in Nigeria and some parts of Africa. Palm oil can thicken when you store it in a cool place for a long time.

Palm tree plantation

This aspect of palm oil business is highly capital intensive. It requires the purchase of large expanse of land, preferably acres of land. The soil must be tested for appropriateness of its use for palm tree plantation, since the quality of the palm oil depends on the land used for cultivation.

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So you must decide on the size of the land and its location for easy access to production plants and market. The incubation period after plantation of the palm trees can take between five years and ten years before harvesting. So as a farmer, you must be very patient. And once the harvesting begins, it is a regular exercise since different palm trees will produce ripe palm oil seeds at different times and must be harvested.

The palm tree plantation owner has to make a choice whether to set up a mill to extract the palm oil, or to sell the palm oil kernel seeds to those who do the processing. The capital requirement for this type of project runs into millions of naira.

So in summary, to set up Palm oil tree plantation:

  • Purchase a land or make use of family land
  • Test the soil to see if it is good for plantation. Not all soil are suitablle
  • Be certain that there is access to the land to move your palm produce
  • Plant the palm tree
  • Wait for five to 10 years
  • Harvest your palm produce

Setting up palm oil mill

This is another aspect of palm oil business. This is relatively capital intensive since it requires the installation of palm oil milling machines for the processing of the  palm oil kernel seeds. The processing of palm oil kernel can be done in two ways;

  • Commercial processing This is a situation whereby the milling machines are rented out for processing other peoples palm oil kernels and such people pay hire fee for the use of the milling machines. It is a very good business since the machines are used to capacity through out the year particularly during the season of palm oil kernel harvesting, between January and May. During the off season, July to December, the processing business is fairly stable.
  • Installation and use of the milling machines for own use. The second category of palm oil business is to process the palm oil kernel and sell the palm oil to users. In this exercise, the investor installs the milling machines and arranges to buy the harvested palm oil kernel in relatively large quantity from different sources of farmers. The purchased palm kernel seeds are then processed (extraction of oil from the palm kernel oil seed) and the oil sold to resellers or users.

You have to look for a good location to site your Pal oil milling machine. It should be close to farm and also close to major road for easy transportation.

Trading on palm oil

This is the category majority of investors in palm oil business engage in because it is in the buying and selling you make quick money. This business involves the buying of palm oil in large quantity, storing them for months, relatively in large quantity and selling during the off peak period, when the supply to the market has reduced. During this period, the traders will bring out their stock for sale and make reasonable amount of profit. From the background analysis, it is assumed you understand the different aspect of the business.

The steps  you need to take before starting your palm oil business are as follows:

1. Formal and/ or informal market research to understand the nature of the business, the volume of the business, who are the existing buyers and seller of the product, where are they concentrated and which states you have the chief producers of palm oil. You must also find out the prevailing prices of buying and selling and from which states you can obtain the palm oil cheaper and at the right quality.

2.  Capital to be invested. From the research report, you will be able to assess the capital requirements of the business and where to access it. The amount of capital required must be able to meet all of the following:

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  • Working capital : This is the minimum amount of money required to buy the palm oil for sale.  Also, there will be sufficient amount of cash for transporting the palm oil from where they are purchased to the warehouse.
  • Cost of acquiring the warehouse where the palm oil will be stored during the period of low sales until business picks up again in the peak period.
  • Cost of means of storage – kegs of mainly twenty five litres . The quantity to be purchased depends of the level of investment to be made in the business.

3. You need to know how to preserve palm oil. So, Storage space and means of storage must be arranged. The storage space (warehouse) must be spacious, have security, access road and conducive for the storage of oil. Also, the kegs for storing the oil must be arranged.  You can rent a room for storage too.

4. Contact suppliers You must find out where sellers (suppliers) of palm oil are and which state produce the best quality at reasonable prices. You must compile list of suppliers and make efforts to find out whom they are, how reliable, quality of oil they sell, credit facility offered and possibility of establishing long term relationship with them.

5. Decide on the mode of transportation of purchased palm oil . There are so many commercial carriers available and you can approach many of them to compare transport fares, how reliable they are, security of goods on transit and the ability of the carrier to maintain the condition of the oil carried from where they picked up to their destination. If at all possible, buying own vehicle for transporting the palm oil is better for continence and reliability.

6. Market your products. From the outset, it is important to contact the would be retailers (buyers) of your products and intimate them that you are going to be a reliable supplier for palm oil during the season and off season. Compile their list and do get in touch with them occasionally since they are the reason you are in business.

Finding Palm Oil  Exporters and marketing your Palm Oil Business

If you are planing to export your palm oil. You can search for palm oil exporters.

One of the best places to market your palm oil business and find international buyers online is Alibaba. Alibaba.com is a website that connects suppliers, manufacturers with buyers. So you can go to Alibaba and promote your product.

Ensure that you do adequate background check before entering into business with anyone.

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AFRICA

Air Traffic Controllers 2-day strike leaves Passengers stranded

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Nigerian Air Traffic Controllers, ATCs, commenced two days disruption of early morning domestic flights across the country to press home their demands for better working conditions.

The disruption is expected to last for three hours each day between 6 am and 9 am.

The action has already affected the flight schedules of many airlines as they had to reschedule.

The action of the Traffic Controllers is coming after another ATC, Mr Aniekan Effiong Inuk, died in the early hours of Monday, November 22, 2021 while on duty at the Nnamidi Azikiwe International Airport, Abuja.

A statement issued by the Controllers yesterday read: “That commencing from 0600 UTC today, 23rd November 2021, ATC units nationwide should operate flow control. That all departures should be spaced at 20 minutes intervals. That all international flights are exempted.”

“That all ATCOs should endeavour to be on high alert should there be a need to escalate this exercise beyond flow control, we are ready to further such actions. That this exercise will be for two days and will be strictly executed at the four major airports with strict coordination from adjacent aerodromes before any start up is issued”.

Speaking further on the grievances of the Controllers and action to be taken in another statement titled: An SOS On Poor Air Traffic Control Working Conditions And Staffing, signed by Abayomi Agoro, President of the association and Rev. Agbonlahor Felix, General Secretary, the union said: “Nigerian Air Traffic Controllers’ Association (NATCA) rose from an emergency meeting conveyed over the tragic, painful and avoidable exit of one of our diligent and dedicated colleague Mr Aniekan Effiong Inuk in the early hours of Monday, November 22, 2021.”

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“The council observed that within the last two years, Nigerian Air Traffic Controllers Association has lost nine of her members on active service due to stress-related health complications which seem associated with poor working conditions and inadequate staffing. “

“Several appeals to management and other stakeholders in the industry and inactions by appropriate managers on communiqués from the Association’s past Annual General Meetings had failed to address the issues. “

“The death of Mr Aniekan Effiong Inuk on active duty at Abuja airport whose sad event is not unconnected with the unavailability of operational vehicle to move him to a hospital in record time amongst others is one too many.”

“Hence, Air Traffic Controllers are embarking on a three (3) hours flow control for two days, 23rd and 24th November, 2021 from 0600UTC to 0900UTC to register our displeasure and call the attention of relevant authorities and the public to quickly address our concerns without further delay.”

Meanwhile, Some airlines have sent messages of flight delays and adjustments to their customers who were already at the airport while some have cancelled flights outright blaming the action on ATCs.

A Green Africa Airways flight scheduled to depart Lagos for Akure at 1.34 pm was first cancelled, then rescheduled to 4.45 pm and then another notice of delay was sent to customers.

“Flight 318 from QOW to AKR scheduled for 23 Nov 2021 04:45:00 has been cancelled. This is due to an ongoing industrial action by Air Traffic Controllers. We apologise for any inconvenience this might cause you.”, the message to passengers read.

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“Please be notified that your flight 307 from AKR to LOS will be delayed due to an industrial action by Air Traffic Controllers at some major Airports in the country today.”, another message reads.

The ATCs are, amongst other demands, asking the government to “approve and implement a 500% upward review of the annual ATC medical allowance to enable ATCOs to carry out comprehensive medical assessment among other stuff.”

“That all Air Traffic controllers be enrolled in an enhanced comprehensive health and life insurance schemes that will meet their health needs. “

“That standard medical emergency kits be provided at all ATC units and yearly Health Safety Environment (HSE) training programs for ATCOs be conducted,” amongst other demands.

Source: Vanguard News Nigeria

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We Don’t Have Control Over Cooking Gas Price ― FG

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The federal government on Tuesday said that it has no control over the price of cooking gas because the product is fully deregulated in the country.

The minister of state for petroleum resources, Timipre Sylva, who made the declaration in a chat with correspondents however noted that President Muhammadu Buhari is worried about the hike in the price of cooking gas.

The minister was at the presidential villa, Abuja to introduce to the president the CEO, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA,

Engr. Faruk Ahmed and the CEO, Nigerian Upstream Petroleum Regulatory Commission NUPRC, Engr. Gbenga Komolafe.

He asserted that gas prices are determined by the global market, even though he indicated that government will everything possible to bring down the price of cooking gas especially during the Yuletide season.

He said, “We must understand that cooking gas is not subsidized. It is already a deregulated commodity. So the price of cooking gas is not determined by the government or by everybody in the industry. In fact, gas prices are determined internationally.

“And you all are aware that in Europe, today, gas prices have gone up. There was even a crisis in Europe relating to gas prices. So the pricing of gas internationally now affects also the price of gas in the country.

“Apart from that, there are some issues around VAT charges on imported gas, and of course, taxes on imported gas, which we are handling. But of course, quite frankly, these taxes on imported gas, you must also juxtapose it side by side with the local producers of gas.

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“So, if you incentivize the importance too much, then you will also kill the local industry. And also, you don’t want to incentivize the local industry at the expense of the imports, because if incentivize the local industry at the expense of the imports, then you will not have enough gas produced within the country.

“So, these are the issues of balancing that the midstream and downstream regulatory authority are handling and I want to assure you that we are quite concerned.

“Mr. President also is very concerned. He is aware that the price of cooking gas is high in the market, and we’re doing everything trying to see how we can bring down the price of gas especially as we approached the Yuletide.”

Sylva also disclosed that the president has directed him to proceed to Nembe, Bayelsa State to investigate the level of damage caused by the recent gas spillage in the area.

The minister stated that he will visit the affected communities on Wednesday to assess the situation.

He said; “And the question which is on the spillage in OML 29, we are quite aware of it. Unfortunately, it has happened. It is also one of the issues I discussed with the president as a minister and he has actually asked us to go and visit the site to assess the situation and report back.

“Definitely, we are quite concerned with what is happening in Nembe and will be going there very soon tomorrow. In fact, to go and look at what is happening and report back.

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“Mr. President is very personally interested and we have discussed it and he said we should go there and come back and report to him because environmental degradation issues are things that we are not going to condone but of course we’ll work with the operators of OML 29 to ensure that this spillage is brought under control as quickly as possible.”

On the resurgence of fuel queues in parts of the country, the minister directed the CEO of the Midstream and Downstream Petroleum Regulatory Authority, Ahmed to answer it.

The NMDPRA CEO explained: “You see intermittent queues in some parts, maybe of Abuja and maybe the environs, basically what happened is that some of the depot owners are selling PMS, above the official ex-depot price of N148, they are selling at N156, N157.

“And the reason they adduced is that they are paying for their logistics like shipping in US dollars, they’re paying for NPH, port charges and NIMASA charges in US dollars.

“They have to go to black market to source these US dollars. And that differential between the official and the black market they buy, that is why they added about N9 to N10 to N15 and it depends on whether you are in Lagos, Calabar, Port Harcourt, or Oghara.

Now, we had a meeting the week before last on Tuesday, the 9th, and the NPA was there represented and the DG NIMASA was there as well NNPC, major marketers were all there and we all agreed and resolved that NNPC excess capacity of their shipping their vessels will be chartered to all marketing companies. We will be charging in Naira so that NNPC now will go and source for converting US dollars through the CBN.

“As for the NIMASA and NPA charges, it was all agreed that they will revert to their supervising ministry to get direction on the receipt of these charges in Naira rather than US dollars and I understand the process of that engagement with their supervising ministry has already commenced.

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“Once the NNPC from the 15th of this month, they have already converted to charging Naira instead of dollars for their excess capacity charter to all marketing companies. So, I believe with this, there will be no reason for the depot owners to increase their price beyond the official selling price of N148 naira.

“Now, we have been working tirelessly in the past few years to sensitize our people to start using LPG for example. And they were making an effort to do so. People are now interested in are working towards utilization of LPG, but then the production is not commensurate with the demand.

“And this is why we want to focus on investment in the area. Now, a lot of major oil companies like their IOCs want to invest, but the pricing framework is an issue for them. So, we’re working with the guidance of the Honourable Minister of State for Petroleum Resources to ensure that we put the pricing framework that is attractive enough for the investors but at the same time is simple enough for the consumers, whether it is power, or industrial base, or the commercial sectors.”

 

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Binance challenges The Nigerian Stock trading apps by offering U.S stocks

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Nigerian stock trading apps with exposure to foreign stock listing face a herculean task as Binance, the world’s biggest crypto exchange recently disclosed it will list three new stock tokens over the coming weeks, following the launch of stock tokens that gauged the performance of Coinbase and Tesla Stocks in early April.

The Hong Kong-based exchange in a statement released today said that such tokenized stock offerings will include MicroStrategy, in addition to tech juggernauts Apple and Microsoft.

The tokens will permit its customers to trade fractionalized units of the share tokens, at cheaper transactional fees when compared to traditional trading apps.

Fast-rising fintech trading platforms like Chaka, Trove, Bamboo, and Risevest already offer Nigerians such platform in purchasing foreign listed stocks amid the recent clampdown of such services by the Nigerian Securities Commission.

What you should know about Binance Tokens

Binance Stock Tokens are tokens of stocks (i.e., shares of public companies) that trade on traditional stock exchanges.

Each Stock Token represents one ordinary share of the relevant stock. These Stock Tokens are fully backed by a depository portfolio of underlying securities held by CM-Equity AG, Germany (“CM-E”). Holders of Stock Tokens will qualify for economic returns on the underlying shares, including potential dividends.

Blockchain technology is already revolutionizing financial system services. This technology has made the need for a third party unnecessary in transactions or access to the stock market. Conventionally, buying stocks usually required a stockbroker, paperwork, or a long list of financial assessments.

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Unlike regularly traded stocks, tokenized stocks do not require any sort of paperwork or the need for a stockbroker as a middle-man, which makes them free from the stockbroker’s fees.

Tokenized stocks are derivatives assets. This simply means that the price of a tokenized stock is determined by the price of the company’s stock. If a particular asset is traded at a certain price on a stock market, the same price or a little difference in price will be traded on different exchanges.

Tokenized stocks are digitalized forms of a company’s stock traded on secondary markets. What this means is that Tesla, Apple, Facebook, etc. stocks can be traded on a crypto exchange. Trading Tesla’s stocks, for instance, on crypto exchanges makes it easily accessible to purchase anywhere.

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Creative: South African woman makes dress from recycled KFC packaging

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The Internet has transformed the world into a global village today. Within a minute we get to know news from a thousand miles away and feel connected. Social media platforms also keep us informed and entertained. People are finding new ways these days to get noticed on these online platforms by doing something unique. A female fashion designer and blogger from South Africa is a recent example of this, having garnered the attention of social media users for her creative take on sustainable clothing.

The young fashion designer, who goes by the name NokuzothaNtuli on Twitter, has shared images of a beautiful dress made from recycled KFC packaging that has left people stunned.

Showing her love for KFC, the fashion designer, in a caption, explained that the dress was made out of recycled KFC packaging. She also tagged KFC South Africa in her post. The pictures were an attempt by the designer to win KFC’s Superfan contest, which had the grand prize of a year’s supply of the brand’s fried chicken products.
Take a look at NokuzothaNtuli’s post:

https://twitter.com/NokuzothaNtuli/status/1461041200299978753

Since being shared, this tweet has grabbed over 13,000 likes and a plethora of reactions by Twitter users. Enjoying the attention on social media, the fashion designer has it pinned on her profile at the moment.

After viewing the photos of the dress on Twitter, KFC South Africa themselves were pretty impressed and responded to the woman’s idea on the social networking site, saying that, “All this fresh drip, we were never ready”.

https://twitter.com/KFCSA/status/1461235360973926404

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The word drip is an urban slang word for chic and fashionable clothing.

Not only KFC South Africa but social media users also appreciated the creativity of the fashion designer. Several users found the dress very innovative and commended the fashion designer on her skills.
Some people rooted for NokuzothaNtuli to win the Superfan contest.

Others were impressed by the talent of the designer as well as the free marketing that KFC got through her.

Some people also shared their own experiences with clothing made out of recycled paper.

Now its your time, how creative do you think this dress is?

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