I will start by saying you should never worry about getting a market for palm oil, because there’s no household in Nigeria that doesn’t make use of it. It’s widely used by every tribe and religion in Nigeria.
With that, you can be certain of the lucrativeness of palm oil business in Nigeria. The business you will be doing centres on buying, storing and selling at a good time for profit. It’s really easy; arguably the easiest business you can engage in in Nigeria.
Palm oil is invariably in high demand in Nigeria, but there’s something really unique about this essential commodity. Its price is never stable; it changes significantly during specific periods. Around December to April, palm oil is usually in surplus, and then, it sells at the highest around July to September.
This commodity is sold in various cities across the country. For example, in a city like Lagos you could get it at 6,000 Naira for 25 litres. However, if you go to the farm areas where they’re usually produced and processed, you could get for 4,000 Naira. You should understand that there are times it has sold for 3,000 Naira (25 litres).
Now, imagine getting this commodity in bulk at the time when it’s sold for 3,000/4,000 Naira and then storing them until the price skyrockets to around N12,000 per 25 litres. You’d have made great profit with little effort exerted. If you invest a million Naira and simply wait for 4-5 months, you will make a profit of a million or even more. It can be that good.
If you buy at 5,000 Naira per 25 litres, you can get 20 gallons for 100,000. When the price goes up to 10,000 for same 25 litres, you’ll be getting 100,000 Naira back as profit. The more you invest, the more profit you make.
You can also decide to buy and sell all year round. Find out farms where it’s been processed in large quantities, buy in bulk at a cheap price and transport to your own city (if you have a van, then good, if not, hire one to move your products), and sell at a good price.
Depends on how many gallons you are purchasing, you may need a shop to store your goods. Also, it’s been said that Ebonyi State has high quality palm oil, so you may want to go there to purchase. When you buy, store them and wait for the price to go up before selling.
No doubt, this is a solid investment and the returns on it are always really good!.