Palm Oil Production in Nigeria
Palm oil has been an important ingredient in the diet of many Nigerians. Palm oil is the world’s largest source of edible oil, accounting for 38.5 million tonnes or 25% of the global edible oil and fat production. Palm oil is a product extracted from the fleshy mesocarp of the palm fruit (Elaeis guineensis).
The global demand for palm oil is growing thus, the crop cultivation serves as a means of livelihood for many rural families, and indeed it is in the farming culture of millions of people in the country. Hence, oil palm is often referred to as a crop of multiple values, which underscores its economic importance
The demand for domestic and industrial application of palm oil have continued to increase, t is estimated that for every Nigerian household of five, about two liters of palm oil are consumed weekly for cooking. However, palm oil is an essential multipurpose raw material for both food and non-food industries.
Palm oil is used in the manufacturing of margarine, soap candle, base for lipstick, waxes and polish bases in a condense form, fat spread, ice cream, coffee whiteners, whipping creams, fatty acids free formulation, palm based cheese, micro-encapsulated, filled milk, mayonnaise and sealed dressings, red oil/olefin.
According to United State Department of Agriculture, the crude palm oil production in Nigeria is 920,000 metric tonnes (MT) (2012), which is far below 1,315 MMT domestic demands in 2012, within the period a deficit of 470,000MT were imported the same year to supplement the domestic production.
The market for palm oil and other form of cooking oil is national. With a population of over 165 million people and an estimated national population growth 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 palm kernel oil and its by-products.
The project is technically feasible and economically viable. Raw materials for this project are palm kernel nuts. These are locally available & can be found in the east, west part of Nigeria, in states as Anambra, Imo, Abia, Rivers state, Delta, Akwa Ibom, Edo, Ebonyi etc. Furthermore, the primary materials, that is, the nuts can be successfully grown in abundance in Nigeria
 
This Palm oil project involves starting a small Palm oil production business in any big city of Nigeria which will produce premium quality palm oil to be sold in the local market, competing with a few existing brands. The plant will be equipped with modern equipment & technology in order to ensure the quality of the final products.
The SWOT analysis showed that the opportunities of the business outweigh the challenges and was concluded that Palm oil production idea is healthy and feasible in Nigeria
 
    1.1 Project Brief
    1.2 Proposed Business Legal Status
    1.3 Opportunity Rationale
    1.4 Proposed Capacity
    1.5 Break-Down Capital Expenses
    1.6 Break-Down Working Capital
    1.7 Project Cost
    1.8 Market Analysis
    1.9 Production Process
    1.10 Manpower Requirement
    1.11 Critical Factors in Decision Making
    1.12 Key Operational Processes
    1.13 SWOT Analysis
    1.14 Financial Analysis
 
    Introduction
    2.1 Background Information
    2.2 Objectives
 
    Project Brief
    3.1 Objective of the Project
    3.2 Capacity and Production Output
    3.3 Labor Requirements
 
    Business Legal Status
    4.1 Company Registration
    4.2 Tax Registration (TIN)
 
    Opportunity Rationale
    5.1 Market Overview
    5.2 Demand for Palm Oil in Nigeria
    5.3 Market Trends
    5.4 Competitive Landscape
 
    Proposed Capacity
    6.1 Capacity Selection
    6.2 Production Process Overview
 
    Break-Down Capital Expenses
    7.1 Startup Capex Items
    7.2 Cost Estimations
 
    Break-Down Working Capital
    8.1 Start-up Opex and Opening Stock
    8.2 Operational Expenses
 
    Project Cost
    9.1 Total Project Cost Breakdown
    9.2 Loan and Equity Requirements
 
    Market Analysis
    10.1 Palm Oil Uses
    10.2 Domestic and Industrial Market Demand
    10.3 Consumption Trends
    10.4 Target Market Segments
    10.5 Scale and Pricing
 
    Production Process
    11.1 Process Technology
    11.2 Machinery and Equipment
    11.3 Raw Material Sourcing
    11.4 Production Program
 
    Manpower Requirement
    12.1 Personnel Roles and Responsibilities
    12.2 Staffing Plan
 
    Critical Factors in Decision Making
    13.1 Processing Techniques
    13.2 Seed Quality and Availability
    13.3 Infrastructure and Expansion
    13.4 Compliance and Regulatory Standards
 
    Key Operational Processes
    14.1 Production Operations
    14.2 Marketing Strategies
    14.3 Administrative and Financial Functions
    14.4 Transportation and Logistics
 
    SWOT Analysis
    15.1 Strengths
    15.2 Weaknesses
    15.3 Opportunities
    15.4 Threats
 
    Financial Analysis
    16.1 Cash-flow Analysis
    16.2 Repayment Schedule
    16.3 Key Assumptions
 
    Conclusion
    17.1 Summary of Findings
    17.2 Recommendations
    17.3 Next Steps
 
    Appendices
    18.1 Additional Charts and Graphs
    18.2 Supporting Documents
    18.3 References
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