Here in this post, we will bring you guidelines and steps to start groundnut business in Nigeria. We hope you find this informative.
The several steps to start groundnut business in Nigeria is what we are about discussing in this article. We are going to give a comprehensive breakdown of the various steps and what it takes for you to start groundnut business here in Nigeria as well as giving some rough quotation of how much you need to do so.
Groundnut is an essential and highly economical crop with huge nutritious value. Groundnut can be used in several ways, bet it crushing the seed to extract the oil which can be used for many purposes like deep frying, the formation of pomade when mixed with other substances, etc.
Groundnut equally has health benefits when eaten which include growth enhancement, fighting stomach cancer, protection of the skin, fighting against heart disease, it reduces the chances of stroke, fighting of nerve disease, acts as anti-oxidant, etc.
Availability of groundnut in Nigeria
Nigeria currently produces more than 1.55 million metric tons of groundnut per annum which equally ranks them as the highest producers of the crop in entire Africa and sitting at the fourth position in the world groundnut producers ranking.
Several years ago some parts of Nigeria solely depended on groundnut as their main source of revenue, for instance the northern part of Nigeria and middle belt as well where major producers of groundnut and greater part of that area were developed from the funds acquired from groundnut importation and internal sales, something that has changed now thanks to the over dependency on crude oil.
However, groundnut business still stands out as one of the most lucrative businesses in the country as most people who are into this business make a lot of income be it from selling it in a raw state or the processed type.
Groundnut farmers most especially in the northern and middle belt here in Nigeria harvest as much as 5 metric tons of groundnut per hectare of land but same cannot be said about groundnut farmers in the south and east as well as west as the soil in those areas seems not to be a little bit deficient in nutrient demanded by this crop.
Groundnut tends to do well in arid or semi-arid areas which is why most of the products in circulation are cultivated in places like Benue, Kanu, Adamawa, Taraba, Kaduna, Bauchi, and Borno.
Though some other places like Cross River, Akwa Ibom, Edo and Ogun still produce some quantity of this crop but not as much as those once I earlier mentioned.
Read Also: 6 Steps To Produce Groundnut Oil In Nigeria
The several steps to start groundnut business in Nigeria is as follows:
Step 1: Learn How to Fry Groundnut
Before venturing into any business you definitely need to have adequate knowledge of it. You must learn and be perfect in frying groundnut before you start groundnut business.
You can do this either by going for a formal practice or just seeking advice from experts in this field. However, you choose just know that doing so will give an insight into what you intend doing and it would not take much time learning it.
Step 2: Choose a Location
There no doubt to the fact that groundnut is consumed by up to 80% Nigerians but selecting a location with a good population may be of added advantage to you.
However, you can still start the business wherever you are then with time move it to high populated places. Places like schools, major streets, motor parks as well as supplying to supermarkets.
Step 3: Buy & Fry your Groundnut
Since you are new in the system you don’t necessarily need to buy a very large quantity of groundnut as you will use this first time for testing and observation. As such, buy a considerable quantity of groundnut and fry.
Well, here are steps to follow if you have not fried groundnut before.
- Wash your groundnut with water and remove in less than a minute (most people prefer to sprinkling water, claiming it makes the groundnut taste better)
- Add salt to it
- Spray and allow it to dry properly
- Prepare your fire and pot (a flat button pot of big fry-pan is advisable)
- Pour cup(s) of garri or sand and allow it to heat up properly
- Pour you’re your groundnut until it is done (usually looks somehow brownish in color)
- Pour it out and allow cool a bit
- Tie them with waterproof or whatever container you want to
At this point, your groundnut is ready for sale
Read Also: How To Prepare Groundnut Soup
Potential profit and benefit of selling groundnut in Nigeria
One question you certainly will ask is, how much do I make from groundnut business? Yea, it’s right to ask such a question because the primary aim of one going into any business should be to make money and just as you think groundnut business is highly lucrative.
I have heard a lot of testimonies from people who are into this business that they make about 70% to 100% profit from groundnut sale.
For instance, if you buy two buckets of groundnut for N1,500, you make nothing less than N1,000 to N1,500 as profit and it can even be more depending on how to strategize it.
Groundnut is undoubtedly one of the most consumed snacks here in Nigeria, as a matter of fact, research shows that over N80% of Nigerians eat groundnut and at a whopping rate of at least once in two days.
That is to tell you that groundnut is readily bought and you surely will have customers patronizing your business on a daily basis.
Tips to succeed in groundnut business
There are many groundnut sellers out, so how do you break into the market and beat your competition? Well, you definitely have to create some strategy for this.
You could reduce the price of your product and decide to make a minimal profit at the beginning or perhaps increase the quantity in each sachet or bottle. This will definitely do you a great deal in bringing customers to you at the beginning.
I will conclude by saying that groundnut business is highly profitable if it had ever come to your mind or you are looking for a business idea then you should not hesitate to go into groundnut business.
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