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How To Start Palm Kernel Oil Business In Nigeria

Business Overview Of Palm Kernel Oil Business In Nigeria

Palm kernel oil business is among the profitable business in Nigeria and also among the cash crops inside the country.

This palm oil yields 2 categories of crops and they are red palm oil and oil from kernel. The oil contains Vitamins and is a product for many kinds of production.

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There is an increase in palm kernel demand and this is due to the fact that it is an oil source. It is also cheap and biofuel, soap manufacturers etc make use of this profitability.

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How To Start Palm Kernel Oil Business In Nigeria
Palm Kernel Oil Business – Photo Source: https://earnbase.com

Profitability Of Palm Kernel Oil Business In Nigeria

This palm kernel oil is a category of high fiber and they use it in producing feed for livestock. Palm kernel cake has a rank that is a little above that of cocoa pod just and copra cake.

It is also smaller than that of groundnut cake and fish meal. The gas in demand and supply is of wide nature and the business happens to be among the main opportunities for investors.

a. A tone of palm kernel cake is 230 000 naira

b. One tone of palm kernel nuts is 6000 naira

c. Tone of palm oil is 230000 naira

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Requirements For Opening Palm Kernel Oil Business:

a. Feasibility Studies And Business Plan For Your Palm Kernel Oil Business

First get your business plan and do some feasibility studies and this is the first stage of starting this business. Conduct some market research and this will help you know the market aspects of palm kernel.

b. Select Favorable Location For Your Palm Kernel Oil Business

Get a suitable location and then handle the necessary activities. Now if you have land already and you want your setup to happen and there is no land. Then you can purchase and do leasing for one.

Proceed with another stage and this is after you acquire the land and purchase space factory. Get a space for factory and this will be housing for your equipments, machines, workers’ changing room.

c. Labour for your palm kernel oil business

You will need driver, factory works and other staff categories to operate the palm kernel business. Employ some people and go ahead.

Power Supply For Your Palm Kernel Business

You will need some power supply and this should be PHCN. A standby generator can complement PHCN and this is to ensure efficient power supply.

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Equipments And Machines For Your Palm Kernel Business

This is the machines and equipments list of the process of making palm kernel oil.

a. Oil filter

b. Separator

c. Crackers from palm kernel

d. Tank for oil storage ( 2000 capacity litres)

e. Sludge (presser)

f. Pump (oil dispatch)

g. Machine for weighing

h. Oil Sprint Pressing Equipment

i. Roaster for palm oil

Purchasing of equipments and machines can happen with 11m naira and this makes up to 5 tons/hour. Nevertheless if you are not able to afford this 5 ton equipment and machines, there is lowering of the capacity. This lowering can be 2 tons and 3 tons and then discuss with the fabricator on the cost.

Materials Necessary For Your Palm Kernel Business

The main raw material that you need for the production process of your palm kernel oil is the nut and this kernel is a by product. This by product comes from milling palm oil and you can get it from the platform across the Southern Nigeria.

You can get palm kernel nut and this can be from Enugu, Abia, Oyo, Cross River, Anambra, Ondo, Edo and Ekiti. This is also normally available in much quantities in the season of rain and its season reaches December. Rainy season period is between May and September.

Getting The Capital For Starting Up Your Palm Kernel Oil Business

This business is a capital intensive business and you may set up an oil mill of 5 ton capacity. The minimum capital for starting up is N20 million and the cost for set up is able to increase. Increase depends on the location you choose and the rest of the factors.

Assets for start up normally consist the capital and among them is the cash for the expenses. However if all the startup funds are with you and all the equipments, then sole proprietorship is a part of it.

Nevertheless if there are requirements for more funds and you intend to do partnership sourcing of capital from loans applies.

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Process Of Making Palm Kernel Oil

a. First stage is utilising the machine for crushing and then crushing to sizes that are smaller.

b. Second stage is the roasting of the nuts for palm kernel and then you crush the nuts. After this feed them into the machine and do some heating and this extracts the oil from that kernel.

c. Third Stage has to do with expelling the palm kernel and doing some roasting. After roasting the palm kernel, you can pass it across the oil press and do some compression.

Compress the nuts and then do the expelling of the oil content and this can be through the chamber for oil exit. Then there is collecting of cake and this is through the chamber for exit.

d. Fourth Stage is the stage for storing and collecting the oil. The crude oil from palm kernel undergoes extraction and it is then put into the tank for storage. This is for referring and direct sales.

e. Fifth Stage meets the is need for tanks of stainless and also some drums for product storage.

Some Terminologies In The Palm Kernel Oil Business


This means palm kernel oil and it is the oil after extraction.


PKC means Palm Kernel Cake and it is a residue or byproduct of the process of extraction. They normally use it in production feeds and this is due to much nutrient content.


PKS means Palm Kernel Sludge and it is also another category of residue coming from oil ( palm kernel).

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The palm kernel oil business is among the profitable business and note that it is capital intensive. Also there is high demand for it and you can do exportation. Exportation applies here and this is if you have the capital.

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Ikechukwu Nwuzoh

I am an engineer, writer and blogger. I like to deal on innovative things. Information technology is something I like to engage on. Nice to meet you. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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