Investing in palm oil for export

One of the important areas the government promised to pay much attention to is manufacturing. Other important sectors to pay attention to apart from manufacturing are agriculture and technology.

There is an urgent need to boost local production for export to increase the non-oil export values. The value chain of oil palm is discussed below: The end products (value chain) that will be obtained from the proposed project include refined palm oil, crude palm oil; refined palm kernel oil, crude palm kernel oil, palm kernel cake for animal feed production, palm kernel sludge and crushed palm kernel shell for bio-fuel.

The demand-supply gap has created opportunities for investors in this sector. Today the importation of palm oil and palm kernel oil into Nigeria for commercial and industrial purposes gulps about $690 million yearly. The huge cost calls for an urgent need to boost the local production of palm produce.
Production and packaging plan

The plants and machinery for setting up this project are locally available. Our available local technology will give you any quantity, quality and efficiency you require to produce and package for exports with internationally acceptable standards. However, arrangements can be made for foreign machines on request.

Marketing strategies
Apart from refining into vegetable oil that can be bottled and serve the households, the envisaged products can be sold to industries. All industries –cosmetics, food, animal feed, soap manufacturing, confectioneries and bio-diesel are target markets.

Promoters can export across West Africa, Africa and European countries.
Financial implications and funding

This depends on the capacity and location of the proposed plant. Part of the funding of the project will come from some recommended financial institutions within and outside Nigeria.

Investment analysis
The proposed project is always very lucrative. The return on investment is between 87 and 180 per cent with a payback period of one to three years of operations.