Description

Peanut, or groundnut (Arachis hypogaea), is a species in the legume or “bean” family (Fabaceae). The peanut was probably first cultivated in the valleys of Peru.

It is an annual herbaceous plant growing 30 to 50 cm (1.0 to 1.6 ft) tall. The leaves are opposite, pinnate with four leaflets (two opposite pairs; no terminal leaflet), each leaflet 1 to 7 cm (⅜ to 2¾ in) long and 1 to 3 cm (⅜ to 1 inch) broad. The flowers are a typical peaflower in shape, 2 to 4 cm (0.8 to 1.6 in) (¾ to 1½ in) across, yellow with reddish veining.

Hypogaea means “under the earth”, after pollination, the flower stalk elongates causing it to bend until the ovary touches the ground. Continued stalk growth then pushes the ovary underground where the mature fruit develops into a legume pod, the peanut – a classical example of geocarpy. Pods are 3 to 7 cm (1.2 to 2.8 in) long, containing 1 to 4 seeds.

Groundnuts also have a variety of industrial end uses. Paint, varnish, lubricating oil, leather dressings, furniture polish, insecticides, and nitroglycerin are made from groundnut oil. Soap is made from saponified oil, and many cosmetics contain groundnut oil and its derivatives.

The protein portion of the oil is used in the manufacturing of some textile fibres. Groundnut shells are used in the manufacture of plastic, wallboard, abrasives, fuel, cellulose (used in rayon and paper) and mucilage (glue).

Groundnuts are also used for food and as an ingredient in confectionery products. After the extraction of oil, the residual cake is processed largely for animal feed, but is also used for human consumption.

Nigeria currently produces about two million (2,000,000) MT representing five percent (5%) of world production and in the period between 1956 and 1967, groundnuts including its cake and oil, accounted for about seventy percent (70%) of Nigeria’s total export earnings and created the legendary groundnut pyramids which dotted the landscape of Kano.

Some of the other states where groundnut is produced in Nigeria include Kwara, Kaduna, Sokoto, Bauchi, Katsina, Zamfara, Nassarawa and most of the northern states.

Groundnut is the 13th most important food crop of the world. It is the world’s 4th most important source of edible oil and 3rd most important source of vegetable protein. Groundnut seeds contain high quality edible oil (55%), easily digestible protein (25%) and carbohydrate (20%).

Groundnut oil is also one of the edible oils that are in very high demand. Groundnut oil is majorly used for cooking food and for the production of soap, margarine, and cosmetics. The raw materials are also readily available. The production technology is simple and the equipment is locally fabricated.

Due to the ban on the importation of crude 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.

This report seeks to examine the financial viability or otherwise of establishing a crude groundnut oil production plant in Nigeria with groundnut seed as the raw material.

The demand for Groundnut Oil is high in Nigeria. Consumption of palm oil cuts across social, religious, age in Nigeria in general because it is consumed every day in almost every home in Nigeria mainly for cooking purposes.

The production plant comprises of the pre-treatment facility, processing and refining plant and the capacity of the crushing plant is fifteen (15) tons per day, refining capacity of six (6) tons per day and crude/refined oil storage capacity of one hundred (100) tons. The plant would also have a raw materials storage tank of six hundred (600) MT.
The plant would operate triple shift of eight (8) hours per day at eighty percent (80%) of installed capacity for three hundred (300) working days per annum.