Groundnut oil production business plan guide in Nigeria

Groundnut oil production business in Nigeria is a very profitable project with huge export potential. Besides, the government of Nigeria has been very supportive of edible oil production projects in recent years. In order to seize this chance, you can also firstly initiate the groundnut oil production business by setting up small or medium scale oil mills based on the desired output and project cost.


Here is a groundnut oil production in Nigeria business plan guide given by our project managers. Hope it can help you.

To Initiate a groundnut oil production business, you require a feasibility study, procurement, and installation of machines, hire staffs and so on.

1. The questions you need to consider before starting a groundnut oil production plant in Nigeria

(1)What do you have which can help you be a groundnut oil manufacturer? Raw material, budget, market or others?

(2)What product will you manufacture? Crude groundnut oil or refined groundnut oil?

(3)What is the most effective method to start your groundnut oil production business?

(4) How much will you cost to start the groundnut oil production business?

(5)How much will your product sell and what will your profit margin be?

(6)Where is the market for your product? Who will buy it? How will you market your product?

(7)How can you arrange finance for this business?

Ask yourself these questions before moving forward into the groundnut oil production business. And then you can move to the next step.

2. Arrange finance for your groundnut oil production business in Nigeria

No business can be successful without monetary support. So you need finance or borrowing money from banks.

3. The procurement of groundnut oil production machines

groundnut oil and groundnut meals

Choose high-quality groundnut oil production machines and advanced groundnut oil processing technology. Only a customized detailed groundnut oil processing technology can give you the best production effect. So choose a professional vegetable oil machine manufacturer is your first thing to do.

Henan Doing Mechanical Equipment Co., Ltd has more than 30 years enperience in designing and manufacturing groundnut oil production machines, and other vegetable oil machines. Our engineers can customize the groundnut oil production machine and technology according to your requirements.

4. Learn about the groundnut oil processing technology

Groundnut oil processing technology can be divided into the pressing method, the combination method of pre-pressing and solvent extraction. Complete industrial groundnut oil production plant includes groundnut pretreatment & oil pre-pressing machines, groundnut oil solvent extraction plant and groundnut oil refining machine.

1) Groundnut pretreatment & oil pre-pressing machines introduction:

Groundnut pretreatment & oil pre-pressing machines include cleaning machine, crushing machine, flaking machine, softening machine, cooking machine, and oil pre-press machine.

groundnut oil pretreatment & pressing machine

Cleaning: Remove impurities such as leaves, sticks, stones, sand, dirt, spoiled seeds and metal contaminants. This process is commonly referred to as cleaning and scalping equipment including sieve, destoner, peeling machine, magnetic devices, and belt conveyor, etc. The cleaning machine is good for peanut oil pretreatment and pre-pressing machine.

Dehulling: Most oilseeds need to remove the abrasive shells before oil extracting since the oil content of shells and hulls is less than 1%. Besides, shelling can not only improve the capacity of oil extraction equipment, increase the efficiency of oil production, but also can reduce the wear of oil expeller. Dehuller is commonly used in peanut oil pretreatment and pre-pressing machine.

Crushing & Flaking: Most oilseeds require size reduction prior to oil extraction. Crusher and flakes are used in peanut oil pretreatment and pre-pressing machine. Some small seeds such as corn germ, rapeseed and canola don’t need to be cracked.

Cooking: Heating the seed is an option, but not necessary. It can increase the efficiency of extraction and protein availability.

Pre-pressing: The oilseeds pre-pressing machine adopts domestic mature DY series pre-presser which specialized for peanut, the oil residue in the cake after pre-pressing is about 10-18%, the peanut cake can adopt solvent extraction method to get more oil. The most features of this machine are low energy consumption, less occupied area, etc which is the first choice for peanut pre-pressing.

2) Groundnut oil solvent extraction plant introduction:

groundnut oil solvent extraction plant

The groundnut oil solvent extraction plant is one of the most important pieces of equipment in the peanut oil mill plant. Groundnut oil solvent extraction plant is ideally suitable to extract and produce oil from any kind of oil cake, such as peanut/groundnut, sesame, copra, linseeds, sunflower, castor seed, cottonseed, palm kernel, etc. Peanut oil solvent extraction plant consists of the extraction system, D.T.D.C  system, condenser system, and recovery system. Groundnut oil solvent extraction plant available at small scale and big scale as per buyer’s need.

Functions of Groundnut oil solvent extraction plant main parts:

Extracting: To extract the oil in the cake by solvent, the general solvent is 6# extraction solvent oil or commercial hexane.

Desolventizing: To remove and recover the solvent in the meal; Dry and cool down the meal at the same time.

Evaporating and stripping: Heating the miscella by indirect steam, so that it can vaporize the solvent and concentrate the miscella.

Solvent recycling: This process is to recover the solvent, decrease solvent consumption, Solvent recycling can keep safety production and improve product quality in the peanut oil solvent extraction plant.

3) Groundnut oil refinery plant introduction:

Groundnut oil refinery plant is to refine crude groundnut oil into standard groundnut oil. It consists of the degumming process, deacidification process, decolorization process and deodorization process.

The main process of groundnut oil refinery plant

(1) Degumming — to remove gum and impurities from crude oil

(2) Deacidification — using alkali to neutralize acid inside crude oil

(3) Decoloration — using clay to bleach crude oil

(4) Deodorization — using the deodorizing tower to remove odor from crude oil, then will get refined peanut oil

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