Palm oil packaging business venture, by Chinedu Agbaji


Today’s Agribusiness

Palm oil, a product gotten from the processing of fresh fruit bunch (palm tree), forms an important part of the local diet in Nigeria because animal fats such as milk and butter are hardly consumed.

It is used both as a cooking material and as an ingredient in soups, sauces and a variety of local dishes. Consequently, there had long been a thriving market for palm oil both within the main areas of production in southern Nigeria and between the non-palm oil-producing northern regions.

This business is one of the booming businesses that are prominent in the agricultural sector in Nigeria engaging entrepreneurs ranging from small scale palm oil traders to large scale farmers and those who own a palm oil processing factory.

Palm oil business opportunity is one that should be jumped at any time and not to be procrastinated over. To be engaged in this industry you can play in one of the following areas highlighted below:-

  • Buying and selling of palm oil in Nigeria
  • Palm oil packaging and selling
  • Palm oil export business in Nigeria
  • Palm oil plantation business in Nigeria
  • Engage in palm oil processing in Nigeria

For the purpose of this write-up, we will be talking about the palm oil packaging business.

This is the business of branding and packaging red palm oil in a plastic container or sachets.

It is the same thing with buying and selling palm oil in the market but in this case, you added value to it by making it handy, hygienic and branded.

The return on investment is sure; it is commonly used for cooking and is considered one of the best oils for frying.

Palm oil is a highly sought-after commodity in homes, restaurants and food processing industries.

But your source of palm oil is a major factor that needs to be considered before going into this lucrative business venture.

You can buy from the open local market or palm oil processing plants.

Requirements for palm oil packaging business

Raw material availability: Palm oil is the only raw material needed for this business; you need to know where you can get good palm oil at affordable prices. For instance, Nsukka palm oil is considered to be one of the best palm oil but very expensive, so you need to know all the market days in Nsukka such as Obollo Afor market, Eke Ozzi, Ore Igbo Eze/Oba and Nkwo Ibagwa, etc. You can as well buy from other areas such in Kogi state, Edo, Abia, Cross River, Rivers etc.

Plastic containers: You can use plastic containers to package your palm oil or nylon bag in different kgs with a brand name such as mama’s choice etc.

Registration: You have to register your business with CAC and other regulative agencies and your product name.

Factory: This could be a one-room space shop depending on your capacity but it must be neat always to avoid contamination.

Machinery: Such as palm oil purifier, filling machine, sealing machine, labels, etc.

The Market

  • Homes
  • Restaurants
  • Food processing industries
  • Superstores such as Shop Rite, UAC stores, etc
  • Boarding schools

Finally, this is a good business to venture into but you must make sure your raw material which is palm oil, is very hygienic and good for consumption so that one can use it and come back again.

The major challenges in this business are price fluctuation as it is a seasonal product. Contacts on sourcing palm oil are available for both storage and packaging.

Agbaji can be contacted via email: <>


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