The market for Palm Kernel Oil (PKO) is very large. About 80% of all the edible vegetable oil consumed in Nigeria is made from refined palm kernel oil. What we call groundnut oil in the ordinary market place is in fact refined palm kernel oil. Currently refined palm kernel oil is now being exported to some West African Countries.
In Nigeria, the major buyers of palm kernel oil are vegetable oil refineries and soap making companies and our focus would be on vegetable oil refineries and soap making companies. We shall narrow down to vegetable oil refineries since their demand is far above supply.
It is estimated that only about 75% of the demand for palm kernel oil by local vegetable oil refineries and soap making companies is being meet in Nigeria.
The return on investment on the trading of palm kernel oil is estimated between 10%- 15%.