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Oil palm in Nigeria grows in the coastal belt which varies
in depth from 100 to 150 miles and a riverine belt which follows the valleys of
the Niger and Benue for a distance of about 450 miles from the sea. The main
palm oil producing states includes Ogun, Ondo, Oyo, Edo, Cross River, Anambra,
Enugu, Imo, Abia, Ekiti, Akwa-Ibom, Delta and Rivers.
Palm oil forms an important part of the local diet in
Nigeria because animal fats such as milk and butter are hardly consumed. It is
used both as a cooking material and as an ingredient in soups, sauces and a
variety of local dishes. Consequently, there had long been a thriving market
for palm oil both within the main areas of production in eastern and western
Nigeria and between these regions and the non-palm oil producing northern
region.
The market for palm oil is national. With a population of
over one hundred and fifty {150,000,000} 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 edible oil.
Palm Oil is edible oil extracted from the pulp of the fruit
of the oil palm {Elaeis guineensis} while Palm kernel oil is a white to
yellowish oil which is solid at normal temperatures and is obtained from the
kernels of the oil palm.
“Oil" is a collective term for more or less viscous,
generally organic-chemical liquids. Depending on their chemical composition, a
distinction may be drawn between fatty, essential, mineral and silicone oils.
Palm oil can be differentiated into four {4} types namely
TYPE A: SPO; It has low water content and is the best
quality. They are used in the food industry and in soap making.
TYPE B: TPO; It has high water content and it is not good
to store them for a long time. They are used in the production of soap
especially black soap.
TYPE C: SLUDGE and TYPE D: ROUGH are bye products in the
production palm oil.
For many people in Nigeria, oil palm cultivation is a way
of life and culture. However, during the past decades the country has become a
net importer of palm oil. While in the early 1960’s, Nigeria’s palm oil
production accounted for 43% of world production, today it only accounts for 7%
of total world output.
This situation creates a seller’s market.
The return on investment in the trading of palm oil to local industries in Nigeria is estimated between 10% - 20%.
To continue reading this article and other investment opportunities in Nigeria, please do click on the link below
SUPPLY PALM OIL TO LOCAL INDUSTRIES IN NIGERIA AND MAKE HUGE PROFIT.
Do you know you can access to over 50 market intelligence reports and our monthly E- Magazine for 12 months for just N 5,000?
The return on investment in the trading of palm oil to local industries in Nigeria is estimated between 10% - 20%.
To continue reading this article and other investment opportunities in Nigeria, please do click on the link below
SUPPLY PALM OIL TO LOCAL INDUSTRIES IN NIGERIA AND MAKE HUGE PROFIT.
Do you know you can access to over 50 market intelligence reports and our monthly E- Magazine for 12 months for just N 5,000?
Click on the link below to know more about this offer.
At
Foraminifera Market Research {www.foramfera.com}, we provide bespoke
and up to date market research reports for beginners and on-going
businesses in different sectors of the Nigerian economy.
Our
reports are designed to assist start-ups to understand the legal and
financial requirements of starting the business, the market trends
vis-a-vis demand and supply, competition, risk identification and
mitigation strategies.
You can order our detailed feasibility report on palm oil trading to local industries in Nigeria by clicking on the link below.
Report Code: FORA/08/2012/107
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