Description

Soap is the traditional washing compound made from the saponification of oil fats and caustic alkali. Commercially, the fat is sourced from tallow, lard, palm oil, palm kernel oil, coconut oil, marine oil, etc. Although at present, palm oil and palm kernel oil for the local soap making in Nigeria are readily available, nearly all the alkali for soap making is imported.

Soaps are cleaning products that have become an essential part in our daily lives. Cleaning products play an essential role by safely and effectively removing dirts, germs and other contaminants, and thus promote a hygienic lifestyle. There are therefore, indispensable items as a daily requirement in homes, offices, schools, hospitals, restaurants etc

The product is in great demands in Nigeria. Considering the estimated national population of 165 million and per capita consumption of 30 tablets, the national demand for soap is estimated at 4,950 million tablets per annum.

This report seeks to examine the financial viability or otherwise of establishing a laundry soap production plant in Nigeria.

Laundry soap is one of the most essential house-hold items that humans use daily. It commands regular or constant demand in the market place. Soap making business is lucrative and offers reliable and constant revenue for business men and women who are producing and those marketing soap wholesale or retail.

Considering the estimated national population of 165 million and per capita consumption of 30 tablets, the national demand for soap is estimated at 4,950 million tablets per annum.

The industry has developed both in the small scale and organized sector. Laundry soap production is usually done by small scale industries and 90% of the production of laundry soap is in the small-scale sector. Toilet soap is however dominated by the multinational units.

Different types of soap are produced daily and they include – laundry soap, bathing soap, antiseptic soap, detergent and a host of others.

Consumption and usage of soap for personal hygiene and general cleanliness per household is rising, and the importance cannot be emphasized. Nigeria market is a very large one considering the growing population yearly.

The market for laundry soap 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 soap.