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Waste Oil Recycling Into Base Oil and Sludge In Nigeria; The Feasibility Report.

Waste Oil Recycling Into Base Oil and Sludge In Nigeria; The Feasibility Report.


Used oils such as engine lubrication oil, hydraulic fluids, and gear oils used in cars, bikes, or lawnmowers can pollute the environment if they are not recycled or disposed properly.



Engine / Lube oil is a substance (often a liquid) introduced between two moving surfaces to reduce the friction between them, improving efficiency and reducing wear. They may also have the function of dissolving or transporting foreign particles and of distributing heat.

Lubricants today are classified into two (2) major groups: automotive and Industrial lubricants. Lube oil contains about ninety percent (90%) base oil (most often petroleum fractions, called mineral oils) and less than ten percent (10%) additives.

Vegetable oils or synthetic liquids such as hydrogenated polyolefin, esters, silicones, fluorocarbons and many others are sometimes used as base oils.
Lubricating oils are widely used in automobiles and industries to reduce friction and wear by interposing a thin film of oil between metallic surfaces. They keep our cars, lawnmowers, and many other machines running smoothly.

However, during normal use, impurities such as dirt, metal scrapings, water, or chemicals, can get mixed in with the oil, so that in time, the oil no longer performs well. Eventually, this used oil must be replaced with virgin or re-refined oil to do the job correctly.

Used oils such as engine lubrication oil, hydraulic fluids, and gear oils used in cars, bikes, or lawnmowers can pollute the environment if they are not recycled or disposed properly.

Waste oils are hazardous waste as they display some hazardous properties. Waste oils that are found in rivers, lakes and streams threaten aquatic life. Indeed, a litre of waste oil can contaminate a million litres of water. Furthermore, severe soil contamination can result from waste oils being left on the ground.

Used motor oil is insoluble, persistent and can contain toxic chemicals and heavy metals.

The used oil re-refining market has evolved tremendously in the last decade. From being a disposal liability, used oil is now a product with significant economic value. The growth in basestock prices created the incentive to maximize used oil collection.

At the same time, the used oil collection infrastructure and re-refining technology continues to improve. This has motivated the development of a number of re-refining projects.

However, in the recent years, growth of the re-refining industry has been limited due to lack of enforcement of regulations in developing countries, customer perception about re-refined basestocks and lubricants, and low crude oil price resulting in low prices of virgin basestocks.

Finding solutions to these challenges will be key for any re-refiner to be successful in this industry.

Several countries in the world have put in place, policies and plans to manage the disposal of their used-oil to protect their environment. Unfortunately, the appropriate management of used oil is a common problem for many African countries, including Nigeria, where much of the wastes have negative environmental and human health risks because of inadequate systems for collection, storage, recycling, reuse and disposal.

According to National Bureau of Statistics (NBS), vehicle population in Nigeria is eleven million, four hundred and sixty thousand (11,460,000) with commercial vehicles accounting for the largest share.

The total official lube produced in Nigeria is about one hundred and thirty-five million (135,000,000) litres, although unofficial figures put it at two hundred and seventy million (270,000,000) litres per annum. Imports to Nigeria are about sixty million (60,000,000) litres annually.

The above data gives an insight into the number of automobiles using oil in their engines and the amount of lube oil produced in the country. There is no data on the quantity of used lube oil generated in Nigeria on a annual basis.

This report seeks to examine the financial viability or otherwise of establishing a waste lubricant oil recycling plant in Nigeria.

The plant would refine used lube oil into different varieties of base oil (SN 150, SN350 and SN 500) and sludge.

The capacity of the proposed plant is ten (10) tons for twenty-four (24) hours per day. The plant would operate at eighty percent (80%) of the installed capacity for triple (3) shifts of eight (8) hours each per for three (300) working days per annum.

Table of Contents


1.0 Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of product
2.2 The Opportunity
2.3 Pricing Strategy
2.4 Target Market
2.5 Distribution and Delivery Strategy
2.6 Promotional Strategy
2.7 Competition

3. Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production / Refinery Process
3.5 Legal Requirement and Operational Guidlines
3.6 Production Cost
3.7 Stock Control Process
3.7 Pre-Operating activities and expenses
3.8.1 Operating Activities and Expenses
3.9 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of salary schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start – Up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Analysis
5.7 Cash Flow Analysis
5.8 Viability Analysis

6.0 Business Risks and SWOT Analysis

6.1 Business Risks
6.2 SWOT Analysis

Report Details

Report Type: Feasibility Report
Formats of Delivery: EXCEL / MS WORD
No. of Pages: Text – 46 Pages /Excel – 6 Pages
Publisher: Foraminifera Market Research
Release Date: 16/01/2019; Update Every 3- Months
Language: English
Delivery time: 24 – 48hours

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