The palm oil storage business in Nigeria is one of the oldest ventures in the country. Palm oil export was also crucial to the old Eastern Nigeria’s economy. After the end of slavery colonial British interest shifted towards trade. A bulk of that trade was on palm oil. British merchants bought the then high-valued Nigerian palm oil in colonial times and shipped it back to Britain.

The town of Bonny and later Opobo became notable palm oil markets. Notable merchants and rulers like King Jaja of Opobo and Nana of Itsekiri were among the famed individuals in history who drove a substantial amount of their wealth from palm oil and other palm products like palm kernel.

Today, a lot of things have changed, but the palm oil storage business in Nigeria is still very lucrative. The Eastern part of the country remains the most viable when it comes to palm-related businesses in Nigeria; however, regarding palm oil storage business in Nigeria, one can now participate irrespective of what part of the country one is located in. Apart from palm oil storage, Palm Tree Farming Business is also another popular and lucrative venture in Eastern Nigeria.

How Palm Oil Storage Business in Nigeria Originated

Eastern Nigeria produces the highest volume of palm oil in Nigeria. As with other types of production, there’s usually a period of glut; at such time of glut, production is high. This makes palm oil prices cheaper at such times. Then, much later in the year, production drops, thereby triggering a scarcity. Since processed palm oil has a considerably long shelf life, people can store the product during the glut period and sell it during the scarcity period, thereby making some profit.

While not all parts of Nigeria are suitable for growing palm trees, palm oil storage can be done in any part of the country. Palm oil remains Nigeria’s favorite cooking oil and is highly demanded nationwide. Price variation across the zones also means that people can engage in the business of palm oil storage in other parts of the country and make even more gains.

Who is the Palm Oil Storage business in Nigeria for?

The Palm oil storage business is ideal for those who have spare cash and little time. It doesn’t require constant attention, although care must be taken to store the product appropriately. Civil servants and even students can engage in the palm oil storage business since it doesn’t require daily business activities.

People running other ventures can also engage in the palm oil storage business. The most important aspects of the palm oil business are raising capital and finding storage space and containers to store the product. The good aspect of the venture is that the containers can be reused repeatedly so long as they remain in good shape.

Requirements for Palm Oil Storage Business in Nigeria

The palm oil storage business in Nigeria is a very stable venture. At the same time, it is lucrative. Starting the palm oil storage business doesn’t also require a lot.

Depending on the scale of the business, it is not very capital intensive; however, higher-volume storage may need more capital. The most important requirements for the palm oil storage business in Nigeria are a substantial amount of money that such investors don’t need to spend at the moment, containers and a safe place to keep the oil.

Understanding palm oil quality is also very important; however, this can be navigated through the help of locals especially experienced market women who can identify quality palm oil. If you don’t have good knowledge of quality palm oil, it is recommended that you find a reliable local market woman who would help in the identification of quality palm oil.

How to start palm oil storage business in Nigeria

Once you have achieved the requirements as stated earlier, then it is time to go into the market and procure your palm oil. The financial requirements rely on the volume of oil you wish to procure for storage.

After procuring as much oil as you desire and can afford, proceed to turn the oil into your containers. Ensure storing in a cool and dry room for best quality retention. Palm oil is best stored at room temperature, given a relatively long storage time.

After storage, there is no stipulated amount of time that you must keep the oil before selling. It is up to the investor to observe when the price is suitable for profit maximization. The business practice can be repeated.

You can also engage in the palm oil storage business in Nigeria outside the Eastern zone.

Although the East is Nigeria’s biggest palm oil-producing region, individuals can still engage in the business of palm oil storage outside the East. There’s a nationwide demand for Eastern palm oil, which means that merchants can buy palm oil in the East and market or even store it for future marketing in other parts of the country.

The price of palm oil is higher in other parts of the country than in the East. This is due to the transportation cost when transporting from the East, where palm oil production is huge. Given this disparity in price between the East and other parts of the country, one can still engage in the palm oil storage and distribution business in other parts of the country and maximize profit.

The palm oil that is to be stored in other parts can be obtained from palm oil traders who source from the East. Merchants can also buy directly from the East for storage purposes and future distribution in other parts of the country.

Storage Time

There is no required amount of time for palm oil storage; however, storing palm oil from periods of glut to periods of scarcity is the best practice to maximize profit.

Even without prolonged storage, profit can be made trading palm oil instantly; however, for those who prefer storage for its assured profit and hassle-free business model, the palm oil storage business is still very lucrative. The resell of the stored palm oil can take place at any period of storage this means that there’s easy access to investment capital if the need be. 

Available Market

The palm oil market in Nigeria has always been one where demand is higher than supply. As far as the palm oil is of good quality there are always buyers willing to purchase the product at any given time.

Profitability

The palm oil storage business in Nigeria is highly lucrative. For instance, a gallon of palm oil during the glut period may sell for N5000 (five thousand naira). During the scarcity period, it can go up to N7000 (seven thousand naira). This scarcity period is usually between November and January. At this period, palm oil is most scarce.

Note that the price above is only intended as an instance because the palm oil price is not stable; however, one can see a profit margin.

If one can store up to 100 gallons, it could translate to a profit of over #200,000. The profit may, however, vary. It can be more, and it can be less, but it is very unlikely that an investor may experience a loss in the palm oil storage business in Nigeria if every aspect of the business is to be observed appropriately.

Conclusion

The palm oil storage business in Nigeria is a lucrative and relatively easy-to-start venture. The requirements is minimal with assured profits when appropriate step is taken. It is a suitable side venture for those who doesn’t have much time. It doesn’t need sophisticated business practice and can be undertaken by nearly anyone. It is easy to start and run and also a profit-assured venture.

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