The present production level of Vegetable Oil in Nigeria is yet to meet the demand of Nigerians. There is currently a ban on the importation of vegetable oil into the country. The ban was placed in other to encourage local producers to expand their operations, and new investors to go into the production of Vegetable Oil. This has made the business to be very lucrative.
The market for vegetable oil is national. With a population of about 200 million people and an estimated national population growth rate of 5.7% per annum, an average economic growth rate of 3.5% per annum in the past five {5} years, Nigeria has a large market for vegetable oil. The cake gotten as a by-product from producing vegetable oil from soya-bean is used in formulating poultry feeds and other livestock such as cattle and sheep. The demand is high but local supply low hence the need for importation in the past.
Existing producers of vegetable oil in the country are currently enjoying sellers’ market due to low competition.
Vegetable oil gotten from Soya-bean is one of the Chief Sources of vitamins needed for proper functioning of the body tissues. Provision of soybean vegetable oil will contribute to the improvement of our dietary pattern and health came delivery system.
The project is technically feasible and economically viable. The raw material for the production of soyabean oil is soyabean which is available in abundance in Nigeria.
Also read Five Lucrative Businesses You Can Start In Nigeria Today And Make Big Money
The establishment of soybean oil production plant will encourage farmers to produce more of the seeds. The resultant effects are rural development and more rural income.
The project will help the nation to achieve self reliance. Production of vegetable oil in abundance locally will discourage importation or smuggling. This will conserve foreign exchange and improve the country’s foreign reserve.
More employment opportunities will be generated. In this vein, the project will contribute its quota to the national assignment of solving the unemployment problem in the country. This will greatly reduce the level of social vices in the country.
With the newly introduced credit guarantee scheme by the Central Bank of Nigeria (CBN) for the productive sector, investors can access credit to execute this project. A well written business plan is a pre-requisite to access such fund.
We prepared a well researched business plan that envisaged a soya bean oil production plant with a capacity of processing 4 Tons of soyabean per day.
Profitability
Average profit realizable from processing 1 Ton (1000Kg) of soyabean into oil and cake is N20,000. The processing plant referenced has the capacity to process 4 Tons of soyabean per day. If the factory works for 20 days in a month, that gives 80 Tons of soyabean processed per month, the company can make a gross profit of 80 X N20,000 = N1,600,000 monthly.
Also Read: The Business of Soybean Farming In Nigeria
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