What to know about palm kernel oil in 2025

Many people are familiar with palm oil – a major ingredient used in cooking different delicacies in Nigeria, ranging from stews to all kinds of soup. But not many people know about palm kernel oil, a byproduct of oil palm, scientifically known as Elaeis guineensis, used in the production of drugs, cosmetics, and cooking, among a list of numerous other things.

Palm kernel oil, also called PKO, is a major agric export in Africa’s most populous nation earning foreign revenue for the country due to its economic and industrial usage.

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According to data from the National Bureau of Statistics (NBS), Nigeria earned N4.62 billion from palm kernel oil exports in the nine months of 2024. This establishes the FX potential of the oil.

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The kernel oil is derived from the palm nuts.

Nigeria is one of the top producers of palm kernel oil in Africa with a long history of palm cultivation. Some major production states include Akwa Ibom, Cross River, Edo, and Ondo.

Here’s how to start a palm kernel oil business

Starting a palm kernel oil business might be what you need to do in 2025.

BusinessDay looks at a few things you can do to start a palm kernel oil business in 2025.

Source for palm kernel nuts

First of all, the palm kernel nuts need to be sourced in large quantities from producing states. The kernels can be sourced from large farms or aggregated across smaller ones.

Market research

Understanding the market will save you from a lot of financial loss and stress. Therefore, through adequate research, understand the key players in the industry and know who the top competitors are.

Choose a business niche

You need to know what niche to focus on in the palm kernel sector. Some include processing which has to do with extracting the oil from the palm nuts and then selling to pharmaceutical or cosmetic industries.

Getting the necessary equipment

You need to acquire equipment like palm nut crackers used in breaking the palm nuts and cold compression machines to squeeze out the oil from the nut.

Read also: Nigeria can beat the world in palm kernel export – NEPC boss to South-South exporters

Secure a marketable location

Knowing who your market targets are will help you know where to position your business location. Therefore, it is best to do a market survey before securing a location.