Why so many people choose to set up palm oil refinery plant in Nigeria? How to set up a palm oil refinery plant in Nigeria?

An aspiring entrepreneur must be able to look wide and deep when investing in a business. This article covers everything you need to know about why so many people choose to set up palm oil refinery plant in Nigeria? and how to set up a palm oil refinery plant in Nigeria? Next, let's take a deeper look.

Setting up a palm oil refinery plant is one of profitable business in Nigeria

Why so many people choose to set up palm oil refinery plant in Nigeria?

Whether a business is worth doing should be analyzed from many aspects, such as the economic value of the final product itself, market demand, national policies, etc. If it is judged from many aspects that this business is worth doing, then many people will choose to start this business, the palm oil refining business is one of these highly profitable businesses. Next, let's learn about the reasons why setting up a palm oil refinery plant in Nigeria is feasible.

1, Refined palm oil owns a lot of advantages and much uses

A lot of people know refined palm oil to be used for cooking. But refined palm oil owns a lot of advantages and much uses:

Uses of refined palm oil

►Prevention of vitamin A deficiency, cancer, brain disease, and aging

►Production of soap, cosmetic, body cream, exfoliation cream, margarine, etc

►Release of stomach pain

►Production of drugs

►Treating malaria, high blood pressure, high cholesterol, dementia, etc

►Weight loss and for increasing the body’s metabolism

►Water treatment

►Production of dog and other domestic animal food

►Preservation of food

2, The market demand of refined palm oil is large both at home and abroad

The market demand of refined palm oil is very large both at home and abroad

According to the U.S. Department of Agriculture (USDA)，Nigeria consumed 2 million tons in 2021. Today, Nigeria produced just 1.4 million tons of palm oil, and data also shows that from 2012 to 2021, Nigeria imported more than 4.1 million tons aboard. The domestic market is in short supply, resulting in high refined palm oil prices in Nigeria. From the perspective of the world situation, Indonesia's restrictions on palm oil exports have also caused an increase in international demand for palm oil, which is very likely to lead to an increase in the price of imported palm oil. All in all, developing the refined palm oil processing industry in Nigeria is a business with large potential in the long run.

3, Nigeria's local government strongly supports the development of the palm oil refining industry

In 2019, the government increased financing to oil palm producers through low-interest loans, aiming to increase domestic production by 700% by 2027. Before that, in order to support local palm oil production, the government will also increase the import tariff on palm oil from the current 35% to 75%. Besides, in the future, the Nepalese government will cooperate with scientific research institutions to distribute high-quality seedlings and agricultural materials to farmers, take multiple measures to expand the palm planting area, and accelerate the development of the palm industry. All in all, taking into account the gap between the market demand and production of palm oil, the government has been working on the development and support of the palm oil industry since 2015, hoping that domestic production can catch up with demand, and eventually the surplus palm oil can be sold overseas.

How to set up a palm oil refinery plant in Nigeria?

Successfully setting up a palm oil refinery plant in Nigeria is not an easy task, we need to prepare from many aspects, such as: Capital, Sufficient raw material, Suitable factory site, Advanced palm oil refining machines, Source For Customers and so on. Please continue reading:

Requirements for setting up a palm oil refinery plant in Nigeria

1, Capital

This is the money you need to begin your palm oil refining business. The cost to be factored into your capital should include:

►Land acquisition or land rental cost

►Cost of hiring employees

►Factory maintenance cost

►Cost of purchasing palm fruit or crude palm oil

►Processing machine cost

►Cost of means of storage

►Transportation cost

2, Sufficient raw material---palm fruit or crude palm oil

When you plan to set up a palm oil refinery plant, you need to purchase enough crude palm oil or own a oil palm orchard. There are about 24 million hectares of land suitable for palm cultivation in the territory of Nigeria, which can supply sufficient palm fruit to palm oil producer and Nigeria is fully capable of achieving self-sufficiency in palm oil by expanding planting.

3, Suitable factory site

For palm oil processing business, you have to find a suitable factory site and build it. This involved some problems such as the scale of a factory and the size and number of machine. Then, HENAN GLORY is a professional company that not only manufactures palm oil refining machines but also can provide factory building designs and equipment layouts. So if you want to get factory building designs, welcome to consult more from Henan Glory company.

4, Advanced palm oil refining machines

HENAN GLORY can provide a complete set of palm oil refining machines.

Refined palm oil processing machine

►a. acid refining, alkali refining, water washing and neutralization pot, degreasing and decolorizing pot

►b. Oil furnace/electric heating system

►c. Vacuum pump

►d. Leaf filter/filter press

►e. Air pressure machine

►f. Steam generator

5, Source For Customers

You need find a solid refined palm oil market. You can find retailers among market sellers, cosmetologists, housewives, etc. To attract many clients, you can try other modes of marketing such as:

►Online marketing (social media, google ad, etc)

►Referral marketing

►Newspaper marketing

►Word of mouth

►Collaboration/Partnership

Besides, you can also export refined palm oil to overseas market. For example, you can post your refined palm oil ads on some famous shopping website, such as Alibaba.com, Vconnect and so on.

Henan Glory Company is a professional supplier of palm oil refining machines. So if you want to start a palm oil refining business but you don’t know how to do it, welcome to consult us and we will help you.