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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

AICC: Egyptian Grandmasters Dominate Tourney

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With just two rounds left to play, top Nigerian chess players have dropped out in the ranking at the on-going African Individual Chess Championship holding at the Orchid Hotel in Lekki, Lagos.

Although Nigerian players showed shade of genius in the battle field as the tournament reached its climax on Sunday night, the Egyptian who are higher rated players dominate play with Adly Ahmed (African number 2) and Woman Grandmaster Wafa Shahenda leading the pack of other players in both Open and Women sections.

Both have consolidated their lead in the competition, as every win counts to games 4 and 5.

WGM Wafa trounced her Angolan opponent, Woman International Master Esperanca Caxita, in a Sicilian opening with black mostly dominating the game right from the middle play.

The Egyptian WGM is all but a massive one point ahead of the pack leading into the final rounds starting this morning.

While the Egyptian masters are dominating play, credit also goes to some Nigerians raising their heads to be countedNigeria Youth Games product, Onoja Iyefu Joy continues to show resilience and determination to earn her first chess title and create a record while at it.

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She had on Saturday continued her fine run of form by scoring an entire point against Paulo Jemima to register the second position on the ranking table with 9 points. A win in the 7th round will help Joy secure a Woman International Master Title.

WIM (elect) Ofowino Toritsemuwa bettered her AICC Tunisia 2019 record, and she is bound to create a new one as she takes on WGM Wafa in the seventh round.

Toritsemuwa currently shares second place with her compatriot, Iyefu Onoja, both holding 4.5 points, hence making the 7th game point as crucial for the player.

In the Open section, 20-year-old Eyetonghan Denyefa Callistus is pulling his weight. He scored an outstanding 4.5 points after six games, but it is not about the score, somewhat the opponents; defeating 1 GM, 2 IMs, and three draws against two IMs and FM, the youngster will get his chance at GM Adly in the seventh round.

With a half point behind the tournament leader, African Number 1–GM AminBassem landed his second consecutive win after the drawn game with compatriot GM Ahmed Adly, demonstrating he still stands a chance to catch up and maybe win the tournament.

Bassem faces IM David Silva of Angola in the seventh round, who had to offer a draw to his opponent in the sixth round due to health issues. We hope he’s gotten his strength back for this crucial game.

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The tournament ends tomorrow with Maltina and Gulder are among the top sponsor of the event.

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Don’t vote for ‘killers’ in 2023 elections – ex-President Jonathan urges Nigerian youths

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A former President of Nigeria, Goodluck Jonathan, has urged Nigerians not to elect “killers” in the 2023 general elections.

Mr Johnathan stated this on Sunday in Uyo, Akwa Ibom State during a thanksgiving service to mark the 35th anniversary of the state.

Mr Johnathn and his wife, Patience, were the special guests of honour at the service which was also attended by the governor of his home state — Bayelsa — Douye Diri.

“In 2023, you must not make the mistake to vote killers. Those who carry knives, guns, and all kinds of gadgets to go and kill people because of politics, are the enemies of society.

“If you kill to become a leader, you will continue to kill to remain a leader and the people will continue to suffer.”

The former president said he has monitored the growth of Akwa Ibom, adding that he has been visiting the state at least once a year since he joined the defunct Oil Mineral Producing Areas Development Commission, now Niger Delta Development Commission, in 1994 as an assistant director.

While thanking the youth of the state for not vandalising infrastructure, the former president recalled how some people sabotaged his development efforts in the power sector by using arc saws to fell towers because they wanted Nigeria to remain in darkness.

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Mr Johnathan said the election of the State Governor, Udom Emmanuel, should teach politicians a good lesson, especially those who doubted Mr Emmanuel’s ability to manage “human beings”.

Governor Emmanuel was an executive director at Zenith Bank before he was appointed Secretary to Akwa Ibom State Government, a position he later resigned from to vie for the governorship of the state which he won in 2015.

Akwa Ibom is ‘strong national story’ – Gov Emmanuel

Earlier in his speech, Mr Emmanuel thanked the people of the state for their support and described this year’s state anniversary as his last as the state governor.

The governor said Akwa Ibom has become a state with a “strong national story and a sparkling destination of choice for Nigerians and others around the world”.

He appreciated the people for the choice of “Moving Forward,” as the theme of the celebrations but also reminded them that in “moving forward we have to also look back.”

He referenced Joseph, a Biblical figure who later became the Prime Minister of Egypt and added that the children of Israel suffered because of Joseph’s mistake.

“Joseph made a mistake in Egypt when he was about to go, he did not look at the issue of who succeeded him and that is why the children of Israel suffered.

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“If you are a God-sent man you must also learn. I’ve learnt from what Joseph did and today we went back to God and I want to appreciate all Akwa Ibomites because a man after God’s heart will come after another man after God’s heart,” Mr Emmanuel said.

He promised to complete before leaving office next year, the international worship centre that his administration is building in the state.

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Knocks, Kudos as Peter Obi promises 100m poor Nigerians ‘access to free medical care’

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Mixed reactions have trailed the promise by the presidential candidate of the Labour Party (LP), Peter Obi, stating that his administration will prioritise the welfare of the poor Nigerians if elected.

Obi said youths would be the proponent of his agenda to transform the economy.

“If elected the next president of Nigeria, youths would be the main proponents of my main agenda to transform Nigeria from a consuming nation to a producing nation. The two main components of this agenda are human capital development and finance.”

Obi further said health and education are vital to the development of the country, promising to ensure “at least 100 million poor Nigerians have access to free medical care”.

“Given the role of health in reinforcing education in the measure of productivity, my leadership will pay serious attention to the health system by ensuring that at least 100 million poor Nigerians have access to free medical services through an integrated health insurance scheme.”

Obi’s promise which has gone viral, generated divergent reactions on social media platforms.

While some supporters of Obi believed the promise made by their candidate is possible, they argued in support that the country is buoyant enough to take care of citizens’ medical care.

Reacting, a Twitter user; @el_bonga posited: “Peter Obi governed Anambra State for 8 years and he couldn’t provide the state— probably less than 10 million— with free healthcare but he wants to give free medical care to 100 million Nigerians. Interestingly, under his watch, Doctors went on a 13-month strike in Anambra in 2013.”

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Favour Abdalla Destiny said: “The problem is not to vote; the problem is that they know how to promise and after election they will forget all.”

kingharzyz1 argued: “How is this possible? Can you even do free medical care for carcinoma patients alone? Aspirants need to start telling us “How”.

Another user @tha_niel said: “Affordable healthcare is different from free healthcare. Affordable is realistic because the beneficiaries wld contribute an amount. We cannot have a subsidised economy yet. Except when we begin to efficiently recognise all revenues and apply subsidies where it’s needed.”

Oluwashola @Sholexx_ said: “Health is very expensive. Even in the US, you can’t get free medical healthcare due to the cost. What you can get anywhere in the world is subsidised healthcare via health insurance. He should be realistic with his electoral promises.”

Defending Obi’s promise, @drpenking stated that: “Peter Obi said that 100m Nigerians will have access to free medical care and you people think it’s not possible. In Akwa Ibom State there has been free medical care for elderly, children and pregnant women. Our country is rich enough to do these things. Politicians just refuse it”

@urchilla01 said: “This is why I’ve always said that this election should be about antecedents. There’s nothing Peter Obi says he’ll do that he didn’t do as Governor. This is the famous “Anambra ANIDS card” with which students, disabled, & elderly accessed free health care in govt hospitals. ‘

“Under Peter Obi’s Government. When we say #GoAndVerify verify, it is because we fear not for what you will find. Our principal na talk & do. A comprehensive integrated health insurance scheme made this possible, just the same way he said he’ll do it.”

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ASUU: Seven months after, FG orders VC’s to reopen schools

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The Academic Staff Union of Universities has been on strike for about seven months now.

The association is demanding from FG the funding of the Revitalisation of Public Universities, Earned Academic Allowances, University Transparency Accountability Solution (UTAS) and promotion arrears.

Others are the renegotiation of the 2009 ASUU-FG Agreement and the inconsistency in Integrated Personnel Payroll Information System.

Recall that the federal government went to court to challenge the action of the association. Last week the national industrial court through Polycarp Hamman, the judge in the NIC, granted the federal government’s application for an interlocutory injunction to restrain ASUU from continuing with the strike.

The outcome of the judgement was questioned by Femi Falana, human rights lawyer and senior advocate of Nigeria (SAN), who stated that the national industrial court does not have jurisdiction to rule on the case between the federal government and the Academic Staff Union of Universities (ASUU).

However, tired of the lingering strike the Federal Government through the National Universities Commission ordered vice-chancellors to re-open schools and allow students resume lectures.

In a letter disclosed to journalists on Monday, signed by the Director, Finance and Accounts of the NUC, Sam Onazi, on behalf of the Executive Secretary of the commission, Professor Abubakar Rasheed, FG instructed all vice-chancellors; Pro-Chancellors and chairmen of governing councils of federal universities to re-open schools.

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“Ensure that ASUU members immediately resume/commence lectures; Restore the daily activities and routines of the various University campuses”, part of the letter read.

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