Key Steps to Becoming a Successful Palm Oil Supplier in Nigeria

In the palm oil business, there are three (3) classes; “extractors, producers or manufacturers, and suppliers”.

The extractors are those who pluck the kernel nuts from the trees to sell to companies interested in buying palm kernels.

The producers or manufacturers are those who buy the kernels from the extractors with the main purpose of converting them to red oil popularly known as palm oil.

While the suppliers are those who buy the red oil to sell to the final consumers or retailers.

My focus in this article is to show you how to Become a Successful Palm Oil Supplier in Nigeria, the best place to get the oil, and how to sell and make millions from this business.

But if you want a general knowledge on starting a palm oil business, then you can check this article: How to Start Palm Oil Business in Nigeria after you have read this article.

The red oil business is one of the underrated businesses in Nigeria and Africa as a whole.

This business has the capacity of turning you into a millionaire in less than a year. Even the country Malaysia is wealthy just because they focus on this industry.

And the surprising thing is that the Malaysian red oil was taken from Nigeria.

So if you still think this business is not something worth looking into, then I really can’t tell what your problem is.

One of the best things about the palm oil business is that; it doesn’t get spoilt, and it is ever in demand in and out of its season.

It is also very easy to store and can last long(years) without any signs of spoilage if properly stored.

Another surprising thing about this business is, you can start with as low as N10,000 and make at least N30,000 as a return.

This business is also something you can do part-time alongside your current job, as it doesn’t require daily activities but rather seasonal activities.

These are the things you must know before you start a red oil business as a wholesaler/supplier

How to Start the Palm Oil Business in Nigeria as a Supplier

1.  Locate the state where you can get the best oil.

Obviously, you should know by now that there are varieties of oil just like you see diverse species of other living organisms.

In Nigeria, palm oil is mainly found in the tropical region, and within the tropical region only a few states are best known for producing the best palm oil such as;

  • Edo
  • Delta
  • Akwa Ibom state
  • Imo State
  • Bayelsa
  • Cross River State
  • Ondo
  • Ekiti
  • Ebonyi

All these above-listed states are where you can get palm oil at cheap prices and in good quality.

2. The Best oil to Buy

In locating the best oil there is one major thing to watch out for, which is; the color. if you are just starting it is advised you take an expert along with you.

There are many adulterated palm oil in the market and if you fall victim to any of them, you will not only lose customers you will lose trust.

"Trust is the cartilage of any successful business. If you lose it you might not be able to recover from it."

So, if you are a beginner in this business, it is either you take someone along with you who knows the business or an expert in the field to help you avoid such mistakes.

Note, when you going to buy your oil, make sure you carry your own jerrycan, for the seller(manufacturer) to turn it into yours.

The reason for carrying your own jerrycan “even though they might indulge you to carry theirs for free” is because; some of these sellers do turn water into their jerrycan, then turn the palm oil on top.

Definitely, you know due to their chemical components, the red oil will never mix with the water instead it will float on top of the water.

And if you decide to buy the red oil in the month of March to hoard till September, it will be too late to return it.

The next thing to do after buying the oil is where to store it and how to store your oil.

3. Storage of Oil

Storage of palm oil is one of the easiest to do as it doesn’t require any technological measure.

In storage of the palm oil, one major thing that palm oil doesn’t agree with is sunlight.

This means that at all costs the red oil must be stored indoors.

In storing palm oil indoors, the oil shouldn’t touch the floor, and it should rest on the wall.

In other to prevent that from happening, planks will solve the problem; put planks on the floor and the wall.

That is how easy it is to store your palm oil.

And palm oil can be stored for years without losing its initial taste or color if properly stored as written above.

4. When to Buy and Sell

The palm oil business just like any other agricultural crop has its own in and out season period.

The best time to buy your palm oil is during its season which is normally between February to June.

From February to June palm oil is very cheap and it is always high from September to January.

This means that the best time to sell is from September to January

From September to January, you can make 100% and above as profit even if your selling skills are bad.

Using last year’s market price statistics; palm oil was sold for N6,000 per gallon as of March and in November it was N25,000 per gallon which is 400% profit increment

Imagine you had invested N100,000: 100,000 X 400% = N400,000 profits

And right now in this Buhari regime things are more costly than before. So my advice for you is that you don’t miss the next market opening season of this business which is February to June.

Where and How to sell your Palm Oil

1. You can sell online.

Selling online is very easy, all that is required is that you meet the basic requirement which is; well-packaged products with an authentic NAFDAC number on them.

Platforms like; Jumia, Konga, Kara, etc. are the online platforms you can easily access to sell your palm oil.

The compulsory criterion they will all ask for is your NAFDAC number.

To get the NAFDAC approved number is by joining the “Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA)” or any other registered small agric group that could be of help.

It is also important to note that NAFDAC won’t approve your product if it doesn’t look appealing to the public (ie the packaging speaks a lot if they are to approve your product).

2. You can sell to restaurants

Selling to restaurants might be tiring but profitable as you might be called upon to deliver within short intervals due to their high consumption of palm oil products.

Selling to restaurants directly doesn’t mean you shouldn’t have your packaging right or your NAFDAC number missing, both are very important.

Matter of fact the restaurants you intend to sell to will highly value your product if they are well packaged and have the NAFDAC numbers.

These restaurants don’t exclude international eateries such as KFC, Mr. Biggs, GT, Chines restaurants, etc.

Though they might have their current suppliers, it is also open for you to pitch your own product to them. That is why you must have your packaging right and the NAFDAC number intact.

3. Selling Internationally (EXPORT)

Exporting your red oil might come with a little task, but it is a worthy journey.

You can either join an online platform that allows foreign countries to buy from their sites or you can create a website for your product.

In the case you opt for the creation of the website, it is important to also create Facebook and Twitter ads that have a landing page for your website.

The website might demand a bit more currency (money) just to put it on top of other websites in SEO ranking.

That is why you will have to start with the local market first, when you’ve been able to conquer your local market sufficiently, you can then start the international market.

By then there will be a lot of capital to spare for the building of your brand and website to compete internationally.

And you can use courier services like to ship your palm oil internationally.

Challenges of Selling Palm Oil Products

Selling palm oil products in Nigeria comes with its unique set of challenges, and addressing these challenges strategically is essential for success in the market.

Here are some common challenges you are likely to face selling your palm oil products in the Nigeria Market and potential solutions:

  1. Fluctuating Market Prices: Palm oil prices in Nigeria can be volatile due to factors such as global demand, weather conditions, and market dynamics.
    Solution: Diversify your customer base, explore value-added products, and engage in forward contracts when possible to secure stable pricing.
  2. Quality Control: Maintaining consistent quality is crucial, but issues such as contamination or improper processing can impact product quality.
    Solution: Implement stringent quality control measures at every stage of production, invest in modern processing equipment, and ensure adherence to hygiene standards.
  3. Market Competition: The palm oil market in Nigeria is competitive, with numerous producers and sellers.
    Solution: Differentiate your product through branding, quality assurance, and sustainable practices. Explore niche markets and build strong relationships with wholesalers and retailers.
  4. Supply Chain Challenges: Issues in the supply chain, such as transportation bottlenecks or delays, can affect timely deliveries.
    Solution: Develop robust supply chain networks, work closely with reliable logistics partners, and maintain adequate buffer stocks to handle unexpected disruptions.
  5. Regulatory Compliance: Adhering to local and international regulations, including quality standards and export requirements, can be complex.
    Solution: Stay informed about regulatory changes, seek necessary certifications, and ensure compliance with industry standards. Engage with relevant government agencies for guidance.
  6. Environmental Sustainability Concerns: Increasing awareness of environmental issues related to palm oil production, such as deforestation, can impact market perception.
    Solution: Embrace sustainable and environmentally friendly practices, obtain certifications like RSPO (Roundtable on Sustainable Palm Oil), and communicate your commitment to responsible production.
  7. Access to Market Information: Limited access to accurate market information can hinder effective decision-making.
    Solution: Invest in market research, leverage digital platforms for market insights, and participate in industry events to stay informed about market trends and demand.
  8. Seasonal Variations: Palm oil production may vary seasonally, leading to fluctuations in supply.
    Solution: Plan production schedules to align with peak seasons, explore storage solutions, and diversify product offerings to maintain a steady supply throughout the year.
  9. Financial Constraints: Limited financial resources may constrain investments in equipment, technology, and market development.
    Solution: Seek financial support through government agricultural programs, agricultural loans, or explore partnerships. Develop a budget and financial plan for optimal resource allocation.
  10. Changing Consumer Preferences: Evolving consumer preferences, such as a preference for healthier oils, foreign oils can impact demand.
    Solution: Adapt to changing consumer preferences by diversifying product offerings, exploring healthier variants, and communicating the nutritional benefits of palm oil.

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How much does it cost to start a palm oil business in Nigeria?

The startup cost for a palm oil business in Nigeria vary based on the season you choose to commence the venture and the prevailing market inflation.

As a supplier, you can start a small-scale palm oil supplier business with a capital of N200,000 Naira, while on a larger scale, the startup capital ranges from 500,000 Naira to 1,000,000 Naira and above.

How much is 25litres of palm oil in Nigeria?

With the current market inflation, the cost of 25 liters of palm oil in Nigeria should range between 25,000 Naira to 35,000 Naira.

Is palm oil profitable in Nigeria?

Oh yes!👌 Palm oil business is very profitable in Nigeria. You can double your cost as profit if you play by the rules of the business, which I have stated in detail in the article.

How much do I need to start up a palm oil business?

The cost of starting a palm oil business in Nigeria depends on the season at which you want to start the business and the current inflation in the market.

But to be on the safer side, you can start with a capital of 200,000 naira on a small scale and on a large scale you can start with 500,000 naira to 1,000,000 naira only.

Which state in Nigeria has the best palm oil?

In Nigeria, palm oil is mainly found in the tropical region and within the tropical region only a few states are best known for producing the best palm oil such as;

Akwa Ibom state
Imo State
Cross River State

Who buys the most palm oil?

Restaurants have been known to buy most palm oil. But nevertheless, you can leverage your sales only on the ordinary individual consumer and still make enough profit for yourself. I gave more details on this in the article already

When to buy palm oil cheap in Nigeria?

The palm oil business just like any other agricultural crop has its own in and out season period.

The best time to buy your palm oil is during its season which is normally between February to June.

From February to June palm oil is very cheap and it is always high from September to January.

This means that the best time to sell is from September to January


I hope you benefited from this article; “how to become a Successful Palm Oil Supplier in Nigeria”

Do you have any questions or contributions? Please leave them in the comment section below.

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  1. Hello.
    Good day.
    Your write-ups are really exceptional.
    Foodstuffs and provision business merged together isn’t in your top lucrative business. Does it mean the profit margin isn’t high like others listed starting with not less than #1m.

    1. Thank you for the compliment.

      it is lucrative, and many others I didn’t write on this article will be written in other articles in time to come.

    1. Go to the NAFDAC office in the state u currently reside in. For Packaging, that one depends on what you want.
      But you can go to print press for assistance with the design.

    1. You can.. But make sure you have someone who is guiding you as a business coach

  2. Sincerely their is Notting to throw out from this your contents.But I want to consider palm oil, because I have someone in Ondo who can actually get it down 👇 for me to pick. Here is my question sir if I’m getting like 15 jerrycan how do I transport it to lagos

    1. Transporting to Lagos is not the issue. The issue is, do you have the market waiting for the goods?

      I meant that before you transport to Lagos, try to get the contacts of people you have talked to beforehand about the palm oil so that it will be easy to sell when the oil arrives.

      But if you don’t have the market yet and you know, you can safely store your oil somewhere in Lagos before you start marketing it, you have no issue. Just hire a van that can help with the transportation.

  3. Hi bros, you tried so much, a great teacher indeed, i love your write up and i have decided to go for palm oil business, am from Imo, i will be getting it from my state but i don, t have buyers at hand, how do i go about it?

    1. No entrepreneur was given buyers, we build buyers! Go out there and sell your market to restaurants, market women/men, and every other person or sector that could be your target buyer.

  4. Thank bross I am very excited to all your article. This is my question sir to market it is difficult for me, let assume I have 15 to 20 jerrcan how do I market it once because we can’t stay to market it one by one and can you mention the state most preferable to market it to.

    1. First of all, all states are profitable, even in the desert, because oil is an essential commodity.

      Secondly, as a new entrepreneur in this industry, you will need to exercise the virtue called patience… In the course of patience, you market yourself out to potential buyers, and let people know that you do this kind of business.

      I gave a tip on who your potential clients could be.

      No business became great without first advertising what it does to the public”

  5. Good day to you Mr Igbinigie, thank you for generously giving us this information. I am blessed to have come across this write-up. I am a 55years old Lady returnee from abroad without much money and have been worried about what to do and how to start. Now I know. Because of your article, I have chosen the palm oil business. I will start and keep you updated.

  6. Thank you so much for this well detailed article. God bless you for your generosity . I quite understand your explanations very well but I think I still need a mentor, please can you mentor me?

    1. Thank you for the compliments, but for now, we have not yet started mentorship program.

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