How to establish a groundnut oil processing factory

Groundnut is grown heavily in the middle belt and Northern parts of Nigeria. This means that raw materials for the processing of groundnut oil are readily available. The establishment of a groundnut oil processing factory will contribute to rural sector development, as farmers will be encouraged to produce more because their products can get ready market.

The market for vegetable oil in Nigeria cannot be overemphasized. With the Nigerian population of over 120 million people, and vegetable oil being a daily need item, the market for groundnut oil in Nigeria is very big now as supply cannot meet the demand of the people.

The establishment of groundnut oil processing factory will create employment opportunities and reduce social vices.

Vegetable oil is one of the chief sources of vitamins and minerals, meant for the growth and development of human beings. In this case, the establishment of this project will contribute to the physical and mental development of Nigerians.

The northern part of Nigeria has been known for the groundnut pyramids in those days. Groundnut production has contributed tremendously to the development of the northern part of Nigeria because it is both a food and cash crop. Encouraging groundnut oil production will return this old glory and feat.

The technology for the production of groundnut oil is very simple to install and maintain.

In this regard, various government agencies (State and Federal) can adopt it and install in all rural areas of Nigeria as part of poverty alleviation programme.

Production technology

To produce groundnut oil, groundnut with pedigree to produce oil are procured and brought to the factory.

The procured nuts are sorted out and cleaned before being fed into the machine for extraction. The extracted oil is then refined through the process of filtration and heating. The end product is then collected and packaged in the desired containers. Establishment of this project involves Feasibility study preparation, procurement and installation of machines in the appropriate accommodation,followed by recruitment of personnel and project commercial take-off. Investors will be readily assisted in any of the above listed steps.

Profitability

The plant has the capacity to crush 500 metric tonnes per annum. A net profit margin of N20,000 per tonne of raw groundnut crushed has been computed. This means that prospective investors can earn annually, N10 million, by embarking on this project.

Serious minded investors can be assisted by the author in the establishment of the project. The author can be contacted through, Nucleus Ventures (Nigeria) Limited, Makoni Plaza,Off Eleyele Round About, Eleyele – Eruwa Road, After Askar Paints, Eleyele – Ibadan.

Tel: 080- 23058045, 080-55159473 & 080-33660177. OLUMAKINDE ONI, B. AGRIC (HONS) MSC, AMNIM, MAES is

managing/director/chief consultant, Nucleus Ventures

(Nigeria) Limited

Tel: 080-23058045, 080-55159473 & 080-33660177,

E-mail: olumakindeoni@yahoo.com.