Starting a palm oil business in Nigeria as a reseller is pretty simple and easy. The idea is that: you will purchase red palm oil where and when the prices are low. Thereafter, you preserve them in storage and then resell them.
In Lagos and some major cities, Palm oil is sold for around #5,500 to #6,000 for 25 liters. There are places and farms you can get your in bulk for around #3,500 to #4,000 or even lesser. If you buy very cheap when palm oil is surplus and then store in a cool dry place, you will then resell when the price is high and make 100% profit from it.
It is usually surplus around December to April and sells at the highest from July to September. So if you can buy enough from December to April and resell between July to September, you can do the calculation by yourself.
If you also plan to be selling all round, that is you don’t wait till July or August to start selling, that will even be a good choice. All you just have to do is located in a place where it’s being produced in high quantities and purchase at a convenient price, then transport to your city and start selling. When you finished selling that, you for another round and keep it on like that.
How much you can make depends on how hard-working and how much you put into it.
Things You Need To Start A Palm Oil Business In Nigeria
Now that you know how the process works, here are things you will need to start a Palm oil business in Nigeria.
Palm oil business in Nigeria is just like any other business that requires capital to start. You don’t need to get a loan or borrow a huge amount of money to start. You can start with the little you have. I am not saying loan and borrowing is bad, am just saying you can start little and expand. The fact still remains that the amount you put in will determine
2. A Store
You will need a place to store your palm oil. A cool dry place is the best. You could use a room in your house, you could use a shop, you could use anywhere indoor to store your palm oil. One of the best way people do it is to get many 25 litres kegs to store the palm oil.
3. Get a Location To Buy From
There are a lot of places where you can buy palm oil, mostly from local farmers. It is always cheap and of good quality when you buy from locals.
Here are some examples of States you can get palm oil in abundance.
Don’t be stingy when buying the palm oil. The quality is crucial and is worth every penny!
4. Transport To Your Location
The next move after buying palm oil from local farmers is to transport the palm oil to your own city. If you have a van or a truck, that will be fantastic and if you don’t have, you can always hire a van that will transport your products for you.
5. Market And Sell Your Palm Oil
Marketing is very important and is still going to give you some marketing strategy below. All you have to do at this point is to wait for the price to go up and then you will start selling.