Production & Manufacturing

Steps to Produce Vegetable Oil in Nigeria

Here in this post, we are going to give you detailed steps to produce vegetable oil in Nigeria. We hope you find this article useful.

Vegetable oil is a product gotten from the processing of groundnut oil.  Vegetable oil business is a lucrative business that many billionaires acquired their fortune from.

Vegetable oil is an essential commodity in every kitchen. However, many other products are gotten from processing groundnut seeds, this is the reason why this business is a goldmine for intelligent entrepreneurs.

Read Also: How to Start Vegetable Oil Business in Nigeria

Steps to Produce Vegetable Oil in Nigeria
Steps to Produce Vegetable Oil in Nigeria – Photo Source:


Vegetable oil is a multi-purpose product, gotten from processing groundnut and well known for frying our plantains and potatoes.

But Vegetable Oil is actually used for a lot more. Just like rice, there is a ban on the importation of groundnut oil into the country by the federal government, this is to urge young entrepreneurs like yourself to venture into the production of vegetable oils.

So what are you waiting for, the government has paved way for you to excel in this business. The business was profitable when there was no ban, now there is ban don’t you think it would be more profitable?

Read Also: 12 Health Benefits Of Coconut Oil


The demand for vegetable oil worldwide, is always on an all time high. There are many other products gotten from processing groundnut, so it is most likely vegetable oil might not be your only source of income. However, I will briefly use an example of a projected earnings from vegetable oil business.

Since the Groundnut oil business is a fluctuating sector, where production is usually determined by the size of the venture or business (Low scale or large scale production). I will be basing my research on low scale production, because I feel you may just be starting out, and not have the capital to build a large scale vegetable oil producing plant.

1 ton of groundnut seeds, produces an average of 500kg of vegetable oil.

440kg of groundnut cake and 30kg of groundnut sludge.

The sales of all this should result to a profit of about 17,000 naira per day and 119,000 naira every week. So you see, the vegetable oil business is a gold mine for people who know how to set it up and manage it. Luckily, I will be showing you how to start up your own small scale vegetable oil business In Nigeria.

Raw Materials

You will need a fully automated vegetable oil mill, to be able to recover your capital and a reasonable profit. The equipment needed to start up a vegetable oil business include:


Equipment acquisition


Vehicle and transportation costs


Read Also: How To Start Palm Kernel Oil Business In Nigeria

1. Learn How to Produce Vegetable Oil

In order for you to begin the business, you must learn how to produce vegetable oil on your own. If there is already a Vegetable Oil producing company around your area of residence, you can go there and work as an apprentice. If you are lucky, you might also be getting paid by the owner.

Once you have acquired enough knowledge about the business, it is time to move on to the next step in starting this profitable business.

2. Get a Location

This is where your equipment will be stored, and all operations will be conducted from. It does not have to be the size of a football stadium, however, it does not have to be too small either. The last thing you want is to have a cramped up working space.

Get a property agent and tell him/her the kind of space you need. It is left for the agent to find a space that will suit your Vegetable Oil business just fine.

3. Register Your Business

The next step is to choose a name, and register your business with the CAC. I advise that you choose a name that is easily recallable, with a funny but catchy hook.

This type of products usually do well in the Nigeria, mysterious names and beautiful packaging usually attract Nigerian buyers e.g Baba dudu, Aunty Oil.

As for registering your business, I suggest you visit the Corporate Affairs Commission office closest to you, to begin the process of registering your business name and business.

This will give you autonomy of that name, this means that nobody else can use any name you decide to give your business.

Read Also: How To Start Palm Oil Processing Business In Nigeria

4. Hire Workers

After conducting my research to write this article, Vegetable oil production is just not a business for one individual. The demand for this product is never ending, and in other to meet up, you need extra hands working for you.

Make sure to hire responsible and hardworking employees, because lazy and irresponsible workers can kill a business faster than lack of funding.

5. Test the Market

Now that the equipment, workers and funding has been properly set up, Its time to test your product in the market. Consider producing few quantities of your groundnut oil and taking it to your local market.

Try selling all of the products and if you do, then that is confirmation that your Vegetable oil will do well in the market.

Make sure you have provision for transportation, because late delivery of your product can cause retailers to lose confidence in your business. A small shuttle bus (customized with your brand logo) is enough for now.

6. Market Your Product

Many businesses failed because they lacked a dependable and modern marketing strategy. In contrast, many other businesses have made groundbreaking success because they took marketing and publicizing seriously. Print Leaflets, flyers and distribute them at the local market.

Nowadays everybody spends about 6 hours a day on social media, so if you are looking to properly reach a lot of people, and consider social media advertisements and promotions.

Read Also: Top 10 Highest Oil Producing Countries in Africa


The production of oil from groundnut seeds: seed planning, seed squeezing/oil extraction and filtration. An average vegetable oil mill has the accompanying offices:

  1. Decorticator;
  2. Cooking pot;
  3. Child boiler,
  4. Oil expeller and
  5. Channel press.

So far your vegetable oil is of good quality, you will have customers paying ahead of time to secure their share of your product.

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Emmanuel Chibuike

Chibuike Emmanuel is a Content Developer at 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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