Nigeria, a leading producer of sesame seeds, presents a compelling opportunity for sesame seed oil production businesses. This study explores the market potential and feasibility of entering this industry.
Industry Overview:
Sesame seeds represent a significant oilseed crop cultivated across various regions of Nigeria.
Sesame oil, a nutritious vegetable oil, finds widespread application in cooking and food processing.
The demand for sesame oil in Nigeria is on the rise, fueled by population expansion and changing dietary preferences.
Due to restricted local production capabilities, a substantial portion of the demand for sesame oil in Nigeria is currently met through imports."

Market Analysis
The total demand for sesame oil in Nigeria is estimated to be approximately 3.3 million tons per year, with an annual growth rate of 7%. Currently, Nigeria has only three functional processing plants for sesame seeds (two in Kano and one in Lagos).Aggregate processing capacity of the three plants is 300 tonnes, with each producing 100 tonnes. The poor number of functional processing plants has affected the quality of the seeds, as most seeds are processed manually. For a country that produces over 1200 tonnes per day, manual sorting and processing of these seeds is inefficient.
Key demand segments include:
Households
Food processors
Cosmetics and pharmaceuticals
Currently, over 70% of sesame oil is imported from Asia and the Middle East.
There is a strong opportunity for import substitution by establishing domestic production within Nigeria.
Proposed Project
Our proposed modern oilseed processing plant aims to extract high-quality sesame oil from sesame seeds. Here are the key details:
Capacity: The plant will have a daily processing capacity of 100 metric tons of sesame seeds.
Location: The facility will be strategically situated in , Nasarawa, which is a major sesame-producing areas in Nigeria.
Production Process:
Mechanical Oil Extraction: We will use oil expellers for efficient oil extraction.
Solvent Extraction: Additional extraction method for maximum yield.
Value Addition:
Refinement: The extracted oil will undergo refining processes to enhance quality.
Packaging and Storage: We’ll package the oil in branded containers for retail and bulk sales.
Market Focus:
Initially, our focus will be on substituting sesame oil imports with locally produced oil.
Future expansion opportunities will be explored based on market demand

financial analysis
financial analysis indicates that this project is both profitable and viable. With the right execution and market dynamics, we can establish a successful sesame oil production venture in Nigeria

Key Success Factors:
Sourcing consistent supply of quality sesame seeds at reasonable prices
Implementing stringent food safety protocols to ensure premium oil quality
Competitive pricing compared to imports through efficient production
Effective branding and marketing to develop consumer demand for Nigerian sesame oil

This study concludes that given the growing market demand, import substitution opportunity, and positive financial projections, a new commercial sesame seed oil extraction facility is a viable business opportunity in Nigeria. However, securing raw material supply, production efficiency, quality management, and effective marketing are critical success factors.