The story you are about to read below will give you a perfect idea on how to make money trading palm oil in Nigeria without getting your neat hands dirty, do not rush reading, be slow so you don’t miss keywords.
I know of a lady who paid her university school fee by selling red oil. That was around 2017, I proposed the business idea to her while she was thinking of a business to do as a student to enable her to pay her bills.
She was from Crossriver state, schooling in Benue State and according to her explanation, red oil was trading around N 5,000 per 20 litres and the rural women hardly see payers.
While that same 20 litres of palm oil was trading around N9000- N10,000 in Benue State. Her concern was where to sell the palm oil if she brings it to Benue from Crossriver, I suggested selling right at the motor park on arrival.
While she was on holiday, I called her to come back with one 20 litres and she did. It will shock you, right there at the park we sold the palm oil for N9,000 cash, the palm oil was undiluted, the red colour was attractive and the buyers begged if we can supply more.
That was how she got steady customers willing to pay for her palm oil before arrival, the deal was to sell to them 20 litres for N8,500 since it would be consistent.
Note: She purchased for as low as N5,000 from her village, transportation was N1,000 per gallon, the total cost for 20 litres was now N6,000.
Her pure profit per gallon of 20 litres was N2,500 and her monthly supply was around 50-70 gallons of undiluted palm oil.
Let’s see her profit: N2,500×70= N175,000 cash…
Her mother was there in the village, packaging her orders, loading then and sending down to Benue State. As a student, a side hustle that was paying her a sum of N175,000 without distracting her academic works was a perfect hustle.
An undergraduate earning an average of N100,000 monthly was huge, she could pay her bills, school fees and never depend on her parents for financial support.
My target audience here are Nigerian students, civil servants, stay at home mothers, and those who are looking for a business to do by the side.
Start trading palm oil today.
If you want to go into red oil trading as a full-time business, then I will advise you to conduct a market survey. Do not jump into palm oil business with the popular assumption they way normal entrepreneurs do.
“Everybody cook, so everybody will buy my red oil”
YES, we all use palm oil but not everybody will patronize your business and you cannot reach out to 200 million people in Nigerians, therefore, know your audience.
Also, know your source of supply. If you can source undiluted oil, you will secure a good number of buyers.
Top 10 States that produce Palm Oil in large quantity in Nigeria are listed below,
If you are in the above-mentioned States and are you still looking for a side hustle or fulltime business, look no further. view the list again, you will discover that far northern states are not included in the top 10 list and can’t even be listed in top 20.
With the best of my knowledge, palm trees strive better in rainy zones, it demands much water to survive and produce quality/quantity oil. And we all know the northern states suffer from rains naturally.
What does this mean to you as potential palm oil seller?
Just hold your breath for a second and think about the population of human mouths that uses palm oil daily in those states. These states are, Kano, Kaduna, Jos, Jigawa, Gombe, Benue, Yobe, and many more should be your target market.
start developing a strategy on how you transport the surplus palm oil to deficits states of the Federation.
Is sad that most Nigerian youths prefer hustling than building a business that can create employment opportunities for others, I advise you to embrace trading and you’ll never lack money.
Now, I know Trading Palm Oil might not be profitable for other people based on their environment and demand within their reach, but trust, it is a business worth trying if you are looking at a big picture.
Let’s assume you base in Lagos, but you are from Cross River or any of the above-mentioned states, and you saw how expansive undiluted palm oil is, and your current job is paying peanut as 30 days salary, sack yourself today.
Or better still, proposal your palm oil to your colleagues at work. They all use red oil at home, use them as a yardstick.
I am writing to you if all you search is “How to secure white-collar job” in the banking sector simply because you read Accounting in university and graduated with First Class or Second Upper, therefore be gainfully employed by Zenith Bank or UBA to delete that certificate mentality.
Hide your paper certificate in a cabinet and TRADE PALM OIL without the fear of “What People” would say if they see me selling red oil BSc holder. What people say doesn’t pay your utility bills.
Do not be a stay at home mother depending 100% on your husband to pay your sundry expenses, your house frontage can be converted to a shop where you display your palm oil.
Start trading palm oil.
How To Start?
Conduct a careful market survey and if feasible, invest your money. For women, getting undiluted palm oil in the marketplace is always a huge challenge, therefore, introduce original red oil and your top the chat.
If you supply undiluted palm oil, you’ll have steady customers waiting for the arrival and if you are diligent, they’ll pay before delivery.
Be like my friend Magret, your parents can help you at the point of sourcing undiluted oil, while you receive and distribute to your clients.
At this age, don’t think of joining market women to sell in a conventional marketplace, differentiate yourself from them by packaging/branding your oil in neat/new bottles before displaying for sell.
As I type this, I know a woman who sells 25 litres of undiluted palm for N9,000 and waybill cost N1,500 to N2,000 nationwide and she does not have a physical shop, but she makes use of social media.
Do you have a Facebook account?
Do you have a Twitter account?
Do you have an Instagram account?
If yes, then you have a perfect shop. Your home is just a warehouse, you do not need money to rent a spacious building, use what you already have in your hands.
You can start with 20 or even 10 litres of palm oil, do not allow procrastination or excuse of “I don’t have the capital to start” stop you. I know someone reading this article have millions to invest in the trading already, but I advise your start small so you can learn the unwritten codes of the business.
Trade and make the Agro-money
DON’T BE JOBLESS IN NIGERIA…