• Thursday, June 13, 2024
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How to invest in palm kernel oil, cake processing                                          

palm kernel oil

It has been said that the only solution to the present economic problem in Nigeria is to grow local agro production. Palm kernel oil production is one of the investments that can boost Nigeria’s agro production and investors’ income.

Investment justification 

Palm kernel oil crushing is a viable investment because raw materials can be sourced at ease. The production technology is simple and feasible, and the market for end products are automatic.

Establishment of the plant will have a direct impact on the development of the rural sector.  This can be argued on the premise that farm products, that is, palm kernel and the likes will be in high demand.  This will encourage the farmers to produce more and at the end of the day boost farm activities and incomes.

The project can improve the standard of living of the promoters.  This is because it is profitable.  It is reliable especially for investors residing in the southern part of Nigeria including Kogi and Kwara states.  It is a better alternative to chasing local purchased orders (LPOS) or contracts about because daily income generation is guaranteed.

Palm kernel oil extraction technology is simple, hence the ease of establishment, management and maintenance. Palm kernel oil is in high demand by soap makers, vegetable oil refiners and paints industry.  The cake is demanded by feed millers and by exporters.

Investors can also export directly.  In fact, an established factory will always have customers depositing in advance of production.

Production technology/implementation procedure 

Palm kernel crushing involves feeding of the machine through the hopper with already sorted and dried palm kernel.  The already fed palm kernel will later undergo the process of crushing in which the oil will come out from one end, and the cake from another end.

The oil collected will be filtered and kept in storage tank ready for sale while the cake will be packaged and bagged ready for sale to feed millers and exports.

To establish the project, the procedure include, among others, feasibility study preparation, plant and machinery sourcing, installation at appropriate accommodation, raw materials sourcing and commercial production take-off.  Investors can be put through in all the above listed step.

Financial implication


Pre-Investment                                 :           100,000

Rented Accommodation                   :           500,000

Plant and Machinery                          :        3,000,000

Utilities                                              :           850,000

Take off working capital                    :        1,000,000

            Total                                                N5,450,000



The plant has a capacity of crushing 2.5 tonnes per day input.

A daily net profit of N50,000 has been computed, working for 200 days in a year, this gives the prospective investor a yearly income of N10 million which is not bad in the present day Nigeria.  Serious minded investors can be assisted to successfully establish this project.  The author can be contacted through 08033660177 or  [email protected].