According to the March 2022 Analysis of the Cadre harmonize, 38.3 million people will experience a food and nutrition crisis between June and August, an increase of 40.2% from 27.3 million during the same period in 2021.

Based on projections for June-August 2022, the projected number of people in phases 3 to 5 in the most affected countries is 19.5 million in Nigeria, 3.5 million in Burkina Faso, and 4.4 million in Niger, 2 million in Chad, and 1.8 million in Mali.

Conflicts, political instability, the COVID-19 pandemic, and the war in Ukraine are causing the region’s food prices to soar at unprecedented levels, coupled with low purchasing power. Maize (+30%), millet (+26%), sorghum (+24%), and rice (+18%) have seen price increases over the past five years in West Africa.

Prices of vegetable oil, particularly imported brands, have hit the roof beyond the consumers in Nigeria.

By 2100, the region’s population is on track to quadruple from its current 0.9 billion to 3.9 billion people. The U.N. Food and Agriculture Organization (FAO) reports that more than a quarter of Sub-Saharan Africa’s population currently suffers from under nutrition, and the region imports about 20 per cent of its staple calories.

Millions in Africa are expected to have a worsening nutritional situation in a matter of a few months; expectedly six weeks after the war in Ukraine began. 30 per cent of the world’s wheat is produced by Russia and Ukraine together. Low-income and food-deficit countries buy a lot of them because they are the cheapest. Africa imports half of its wheat from Russia and Ukraine. On March 22, global wheat prices had already increased by 19% as a result of the war in Ukraine.

A nation that wants to grow must look inwards so as to harness those areas where it has comparative advantage over other nations. When this is done, then efforts would be done to develop those areas to the advantage of the nation.

Apart from petroleum, Nigeria is blessed with other Agricultural products which when processed and exported can fetch up to 60 percent of the nation’s foreign exchange earnings. Unfortunately, some of those natural resources endowed to the country are not fully utilized.

Could you imagine that until recently, before Federal Government announces the ban on importation of some items, that vegetable oil is being imported into this country? Even in the market there are lots of imported brands. This does not tell well of a nation that wants to generate employment to teeming unemployed school leavers. It does not tell well of a nation that wants to generate more foreign exchange to correct imbalance of payments. It does not tell well of a nation that wants to develop rural areas. Therefore there is urgent need to think of how to make good use of what we have to get what we want.

In this write up we shall discuss on how to establish a project using abundant raw materials grown in abundant in Nigeria; vegetable oil is highly demanded in the international market as well as within the country. Vegetable oil includes Palm oil,Palm Kernel oil, sesame seeds oil, and groundnut oil to mention but few.

Prospective investors will be educated on how to use either local technology or imported machines to set up internationally acceptable product.

The raw materials needed to set up this project are cottonseeds, melon seeds, groundnuts, palm nuts or palm kernel sesame seeds etc. All these are grown in all parts of Nigeria. Therefore easy procurement of raw materials is assured.

Vegetable oil is a major ingredient in soap, cream, butter and margarine production. It is used at homes and fast food centres as cooking or frying oil. It acts as a substitute to a more expensive Olive oil, as salad oil. Vegetable oil is therefore used by cosmetic, pharmaceutical, food & beverages industries.

The cottonseed, sesame seeds, melon seed, groundnut and palm kernel cakes are rich in protein and carbohydrate & fats and are necessary input in livestock feeds formulation.

Vegetable oil and cakes are therefore commercially and domestically valuables. As a result no waste is envisaged.

The increase in the demand for soap, cream, butter, margarine and other industrial products, has made the demand for vegetable oil very high. The demand covers not only within Nigeria, but also across the globe. Some companies in Europe, America, Asia and even some part of Africa are readily available to purchase in bulk from those who may wish to exploit the opportunities in international market. Details of such foreign buyers will be given to prospective investors on contacting the writer.

The plant and machinery required depends on the type of product the prospective investor may wish to produce and the raw material input.

From survey carried out the major raw material required include crusher, Toaster, Filter press, refining plant. Other equipment includes receiving tanks; weighing scale, project vehicles etc.

The advantage of the plant is that it has economic efficiency of processing cottonseed, melon seed, groundnut and palm nuts as well as palm kernel. What the promoters need is to have separate processing shaft for different vegetable oil seeds. The promoters have the option of using either locally made machines or imported ones. Details on how and where to procure and install, quality machines and equipment (both locally made and imported ones) will be given to prospective investors on contacting the writer.

Technically, it implies that the processing plant would be worked to its optimal capacity and all the estimated projections would be achieved. Details would be given to prospective investors.

It is advisable to prospective investors to maintain high quality standard so as to attract wider acceptable of the product both internationally and locally. The refinery plant should be well equipping enough to refine an internally acceptable product. The quality control specified by Nigeria and International Standard Organization is therefore very essential. Moreover NAFDAC requirements are also very important. Prospective investors will be given details information on these vital issues.

Packaging is another important area to pay much attention to. There is internationally recommended method of packaging the vegetable oil. Locally, there may not be much worry about the packaging. In this case the promoters may opt for P.E.T bottles. In terms of international market, adequate care should be taken. Details will be given to prospective investors.

The project cost for each of the projects depends on the type of raw material to be applied. It also depends on the proposed location and type of machines to be applied. The cost will be established after discussing with prospective investors on all these issues.

There are financial institutions and special project funding organizations that would be recommended to prospective investors on contacting the writer.

The seeds contain 25 percent of yellow oil. Adopting two processing machines for project take off at 5 tons per plant, and working for 300 days, 3,000 tons of vegetable oil would be produced in a year. Given 25 percent as oil content per ton, 750 tons of cake would be produced annually. Assuming a conservative price of N580, 000 per ton, an average of N435.00 million would be made in a year as annual turnover. Selling in the international market will yield more returns.

For further details on comprehensive & bankable feasibility studies & reports, procurement & installation of the machines & equipment (both local and foreign made) test-running recruitment of quality manpower and training, funding arrangement, please contact the writer. 

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