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.
Extensive market research has revealed that palm kernel nut is an everyday goods used by Industries. They are used in the production of palm kernel oil and cake. Palm kernel oil is used in the production of soaps and other food products while the cake is used in the production of animal feeds.
Thus, the market for palm kernel nut is ongoing and is not dependent on economic cycles.
This report seeks to examine the financial viability or otherwise of supplying palm kernel nuts to local industries in Nigeria.
The required start up capital estimate for the business is N 1,639,000 and the business is expected to generate a net profit per transaction cycle of N 311,000.
The manpower required to run the business is between 1-2 with one purchasing the commodity and the other selling to the buyers but the same person can perform the two functions.