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The Making Of Groundnut Oil: How To Start This Business In Nigeria

Groundnut is a plant that is herbaceous. It usually germinates up to a height that reaches 20-60cm. This depends on the type. The crops germinates side ways and erect with shoots having a breadth that is between 70 and 80cm. The main stem often remain upright.

The Making Of Groundnut Oil: How To Start This Business In Nigeria


There is penetration of the taproots to a depth that is amid 90 and 120cm. This forms branches within the higher level of soil. Rhizobia and mycorhiza mostly occupy the soil.

What Kind Of Soil Do Groundnuts need?

The crop germinate in a PH value of (6.0-6.5). The PH value is acidic and a PH value of 5.5 to 7.7 can still function. This crop is also receptive to soil with much content of soil.

Groundnut Cultivation Process

The planting of the peanuts ought to take a crop rotation of 3 years. There will be increase of soil borne diseases if crop rotation is not the tool here. Loss of humus can also occur due to too much loosening of soil as harvesting goes on. nevertheless the plants have a proper fortification capacity and this is applicable to a non legume.

The Use Of Groundnut In Nigeria

The oil is a neccesity for bcooking in almost every house in Nigeria. From boiling of tomatoes to frying of fish, akara etc, the oil have remained in very high demand.

Majority of the cooking dobe in Nigeria make use of groundnut oil. various dishes in Nigeria utilise this oil. There are various groundnut oil producing companies in Nigeria.

There is current prohibition in the importation of this oil in Nigeria. The production of this oil in Nigeria is not sufficient for the Nigerian population. Making this oil in Nigeria is lucrative and there is an rising demand for it in Nigeria.

The populace of Nigeria now is above 160 million and these people are consumers of groundnut oil.

Cost Of setting up a Groundnut Oil Business

The business cost depends on the level of production. Mini and large scale production requires upto 10-15 million naira to setup.
The cost covers:

  • equipment
  • operational and transportation cost
  • land
  • furnishings


How lucrative Is Groundnut Oil Business?

The cost breakdown of 500 litres is below:

A ton of the seed of this crop makes 500 litres of oil and this is with 42kg of cake of groundnut and 40kg of this groundnut.A ton of oil cost N20000. 75cl of the oil costs N300.
Now continueing with the calculation and with the limit for the mill to be 3.5 ton on a each day.

This is beneficial. There is a profit potential of 3000000 every month.

Steps To startup A Groundnut Oil Business


Do your research for your groundnut business

You have to first do your research. compilation of data is essential. When doing your research you consider the following:

  1. a) What species do I deal on?
    b) What are the fundamental qualities of the oil?
    c) When should you plant and harvest it?
    d) What are the core components of this oil?

This study will inform you on the processing of groundnut oil.


Get a good business plan for your groundnut oil business

The use of business plan is among the strides that are significant. A business plan breaks down the details of the necessity for this option. Opt for business plan services if you will not do it yourself.


Get qualified and get skills for making groundnut oil

You will have to do the training if you are not yet in line with the procedures for this business. Running a groundnut firm involves certain procedures. If you are not familiar with these procedures, then get the training.


Get a well-situated location for your groundnut business

Get a location that is convenient for this business. The location can be an industrialized zone. It should be accessible and possess enough power supply. It should also be strategic in position where people can know and locate your business



Food production businesses like this oil business need to get registered and licensed. This is because there are policies guiding the making of this crop.
When you register with NAFDAC, you can now go ahead an start your business.



This business is a capital intensive business. This means huge amounts are required to start. make sure that you have the capital. The business is beneficial on the long as you will make your capitall within afew months in business.


advertising your groundnut oil

You now market your oil after manufacture. This involves advertising. You can transport to locations away from your place of production. effectual marketing strategies should be put in place.

nonetheless there is already a market for groundnut oil in Nigeria.


Groundnut Oil Making procedure

You follow the steps below to make your groundnut oil:


Getting the groundnuts

Get the amount that you need for manufacture. You may choose to be dealing directly with the farmers. Groundnut farmers may sell them to you at cheaper prices. You may also choose to supply.


The groundnut for your groundnut oil has to be in a hygienic state

Do not use filthy groundnuts for this business. Break the nuts and you can also make use of a machine for this. Fry it for some minutes. You may also rinse them in a water that is cold.


Groundnut soaking

The next procedure is to soak the nuts in a clean bowl. After this you put lukewarm water inside. Let the crop soak inside water for about ten minutes. This make the peanuts softer.


Groundnut blending

Draining of water is the next step. A blending machine is appropriate for this. The blending should make the crop smooth like butter. You can pour little water to make it blend.



Put the paste of peanut in a container that is airtight. Cover the lid in a tight manner. You can put the container in the fridge for not more than 24 hours. Leave it for sometime after which the oil goes up to the vessel.


Oil separation

take apart the oil from the paste after the oil rises. A machine can also do this. The straining happens until you get a paste that is dry.



Oil storage

You can use a straining machine for this. The oil press machine has a function to play.
The following machines are crucial for groundnut oil mill:

  • the corticator
  • the expeller of oil
  • the child boiling machine
  • the pot for cooking


The oil which is palatable is a popular product in Nigeria. Some prodjce using soya beans, cotton seed, palm oil product and melon involve processing with groundnut oil. This business requires capital.

The cost of production depends on the scale. There is also Nigerian government’s ban on the importation of groundnut oil. This ban is an measure to increase the local prodcution in Nigeria.

You have the freedom to use our comment box if you have any questions.


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