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VEGETABLE OIL PRODUCTION AND PROCESSING IN NIGERIA.{ GROUNDNUT SEED AS THE RAW MATERIALS}

Any nation that requires development must look inwards to identify areas where it has comparative advantage over other nations and seek to develop the identified areas.

Apart from hydrocarbon, Nigeria has comparative in the Agricultural sector where a variety of products are produced due to the favorable climatic condition ,good soil condition and the fact that over 70% of the entire land mass of the country is arable.

Different oil bearing seed are produced in Nigeria to include cotton seed, groundnut seed, palm kernel seed, sesame seed, melon seed of which vegetable oil can be extracted from.

Due to the ban on the importation of vegetable oil, the nation has witnessed a deficit in supply of the product though much improvement has been recorded in the local production of the product.

Ground nut kernel contains 50-55% of oil. The oil obtained from the kernel is yellow to greenish yellow in colour with chief constituents of glycerides of oleic and linoleic acids with lesser amounts of the glycerides of palmitic, stearic, arachidic, behenic, and lignoceric acid.

The oil is used as a substitute for olive oil and other edible oils, soaps, salad and cooking oil, mayonnaise and margarine. The meal is an important component of feeds for poultry and cattle.

The production process for the production of vegetable oil is given below

Groundnut ‘Decorticator’ shells the groundnut into husks and kernels. Husks are thrown away by built in air blower and kernels are screened to separate split kernels from whole kernels. Runs on 2 H.P. Motor. 100 kg of groundnut gives about 73 kg kernels & 27 kg husks.

Cooking kettle heats and cooks the kernels or oilseeds by outer steam or by electricity. A little steam / water is also added to the oilseeds to increase moisture content to optimum level. Kettle is mounted on the expeller and is driven from expeller.Expeller crushes oilseeds producing oil and oil cake.

Filter press filters the oil. Filtered oil is completely pure and fresh natural edible oil.

Boiler provides process steam to the cooking kettle. Husks are used as fuel in the boiler. Any agricultural waste or wood can be used. Water feed pump is mounted on the boiler itself. BOILER IS NOT REQUIRED IF ELECTRICAL KETTLE IS USED.

Neutralizer removes free fatty acids from cottonseed oil by adding caustic soda. It is driven by 1 H.P. Motor. Castor oil also can be heated into neutralizer by steam coils inside the neutralizer.

The market for vegetable oil and groundnut cake is national. With a population of over 165 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.

The demand is high but local supply low hence the need for importation in the past. Industry data suggest that Nigerian consumers use more than one million {1,000,000} tones of vegetable oil annually.

In 2005, in order to stimulate local production and attain self sufficiency in vegetable oil production, the government introduced the presidential initiative on the development of edible oil over a period not exceeding three {3} years.

Under this initiative, attention was focused on the promotion of eleven scheduled oil seed crops which are oil palm seed, groundnut seed, Soya beans seed, cotton seed etc and production target was set for each of the crops under the programme as follow

1. Oil Palm: 1 million hectares capacity of producing 15 million fresh fruit bunches
2. Groundnut: 15 million tons annually
3. Soya beans: 670,000 1 million tons per annum
4. Seed Cotton: 1 million tons over the plan period

After about seven {7} years of the initiative, the domestic edible oil demand far exceeds the national production. The short fall in supply is estimated at about 300,000 tons per year.

From the above figures, it is clear that there is a large and sustainable market for vegetable oil in Nigeria.
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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 business plan on vegetable oil production in Nigeria by clicking on the link below.

Report Title: VEGETABLE OIL PRODUCTION IN NIGERIA; THE FEASIBILITY REPORT

Report Code: FORA/08/2011/048

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