It is no doubt that an average Nigerian knows, and have seen palm oil. But some people may not actually know that there is a hidden wealth in Palm Oil. So in this article, we are going to be discussing on how to make money with palm oil in Nigeria.
Nigeria is a home of natural resources, and a home of business opportunities.
No matter the population Nigeria may have in years to come, we can not still harvest all the business opportunities in the country.
It is always funny hearing that one may have a capital for business but may not see any business to venture into. This kind of people would always complain that all the business opportunities in Nigeria have been saturated.
But the truth is that, the more you open your eyes wide to search for business opportunities, the more you see even unharvested better opportunities for you.
Among all the natural resources in Nigeria, palm oil is one them that have business potential, and does not require much capital to set up.
This means that you can easily make money buying and selling palm oil in Nigeria, even as a beginner in the field of business, who doesn’t have enough capital yet.
Why Palm Oil Business Is Promisingly Lucrative
Just as we all know palm oil, many people would always see it as a very common or ordinary commodity; some may even see it as a business for the local women.
But it would be wise to know that nothing is local until you make it local, and nothing is ordinary until you make it ordinary.
If you think palm oil business does not appear mature to you, then it’s up to you to add value to it and make it appear mature.
But the truth is that you can make cool money buying and selling palm oil in Nigeria.
Palm oil is a promising lucrative business commodity because it falls within our everyday use. Almost all the food we eat on daily basis require palm oil.
Every region of the country use palm oil, unlike some food stuffs that my be restricted to a certain tribe or region. Whether you are in the Northern or Southern part of Nigeria, palm oil remains a general commodity.
I was surprised one day that I went to one villges in the North to buy crayfish, and they told me that they don’t sell or eat crayfish in their village.
This is unlikely to palm oil, as no place in Nigeria that doesn’t use palm oil. This is one reason palm oil would always be on demand, hence a promising asset for lucrative business.
How Much Is Required For This Business?
Making money with palm oil in Nigeria may not really require a lot of capital as you may think, but how mature or huge you would want the business to be depends on the capital you put in it.
Let me give you this breakdown so that you can easily brainstorm the kind of capital you will be hoping on.
The average price you can buy a 20-liter Jerrycan of palm oil in some remote places, ranges from N5000 and above, depending on the place.
There is always time that palm oil is cheap and time when it will be very costly. When the price goes high, these 20-litter Jerrycan you bought for N5000 may be selling at N10,000 and above.
Let’s say you are able to buy 50 pieces of 20-liter Palm oil for N5000 each when the price is cheap; this will actually cost a total of N250,000.
If you are able to sell them at the rate of N15,000 per Jerrycan when the price goes high, it means you may be making a total of N750,000; meaning you were able to make a gain of N500,000 within the space of time, though some expenses may be incurred.
This means that if you have a capital of N500,000 or even less, you can easily start making money buying and selling palm oil in Nigeria.
But if unfortunately you don’t have any capital yet, then you can checkout here for some other lucrative businesses you can do without any capital
How Do I Get Started?
Making money buying and selling palm oil in Nigeria may not really require any certificate or technical skills.
The first thing you need to do is to scout for your capital, look around you to know the possible means you can source your capital. But if you already have your capital, that’s wonderful!
Now that you have your capital, the question you should ask yourself is, “when is the right time to buy?”
You can easily know the right time to buy and store palm oil, by asking questions. Ask around, especially those market women that deal with palm oil.
Ascertain if the price is currently higher than normal or lower. If the price is higher than usual, then it may not really be the right time to buy. You may have to wait for the price to come down before you buy and store your palm oil.
Where Do I Buy Them?
Though the price of palm oil may vary from place to place, but the best places you can get it at very cheap rate is in the remote areas, that is in villages.
There are actually some states in Nigeria that have a lot of palm oil; States like Akwa Ibom, Enugu, Ebonyi, and so on. In these states, a lot of palm oil can be found in the villges, and can always be gotten at a very cheap rate.
In fact almost all the palm oil we use today, is coming from villges. Even in my States, there are some villges that have more than enough oil, and are always ready to sell it out at any little price, because they don’t know what to do with the excess.
I could remember a guy from my State, who was doing his National Youth Service Corps (NYSC) last year during the Covid-19 pandemic.
Due to the pandemic lockdown, he was actually not staying where he was posted to serve, he was rather staying within our home town.
He was receiving his NYSC monthly allowance even while staying at home, because of the pandemic lockdown.
Though he was receiving his monthly allowance, he was staying idle and finding it difficult to venture into any business because nothing was working out due to the pandemic.
At a point, I had to suggest to him, to use little of his NYSC savings to buy and store palm oil, because it was very cheap then.
The interesting thing about the whole story is that palm oil later became hot cake after he might have stored enough of it.
The proceeds he made from it was the major thing that helped him to start the business he is doing today, after his NYSC.
So, if your State has enough Palm oil, look for the particular villages in your State that always produce enough and cheap palm oil, go there and get as much as you can afford.
But if your State does not have enough Palm oil, you are still free to make it inter-state business by checking out on other States that have palm oil, especially Akwa Ibom, Enugu, Ebonyi, and so on.
Go there, buy them and transport your goods to the place you want to store them until you are ready to sell out.
Where Do I Sell Them?
If you have been able to store your palm oil until the price becomes costlier, you may not really have problems getting where to sell it.
I could remember when I was in Akwa Ibom, I had some friends that were doing the business.
They would always come from Abia State, and stay in Akwa Ibom for up to a month, buying the oil from villages.
The always rent some shops there, where they keep the palm oil until it is up to the quantity they want to transport to Abia State.
Sometimes it would even be the villgers that would be bringing the palm oil in small quantities for them to buy, because almost every village there doesn’t know what to do with palm oil because it’s always in excess.
So, there are actually many states you can sell your palm oil if you don’t want to sell it in your state.
You can sell your palm oil in Abia State, Imo State, and so on. Even most States in the Northern Nigeria don’t have enough palm oil, so you may also decide to be moving them to that side.
There is no business that is a neat business unless you make it neat. Don’t see palm oil business as a dirty one, you can actually give it a swag and add value to it.
One good thing about this business is that it’s a kind of investment business, and does not stop you from other business engagements.
Think outside the box, as you can actually make your money from palm oil here in Nigeria.