Start Groundnut Oil Production Business in Nigeria – Full Guide for Beginners

How to Start Groundnut Oil Production in Nigeria (Step-by-Step)

πŸ₯œ Why Groundnut Oil Business Make Sense

Groundnut oil (a.k.a. peanut oil) dey used everywhere in Nigeria β€” from mama put to big restaurants. The demand steady, and if you process clean oil, you go sell well.

Bonus: You go also make money from:

  • Groundnut cake (used as animal feed)
  • Husks (used as manure)

Step-by-Step Guide to Start Groundnut Oil Production


πŸ›’ 1. Buy Raw Groundnut in Bulk

You fit source from:

  • Kano
  • Niger
  • Taraba
  • Kaduna

Buy clean, dried, and mature groundnuts β€” avoid wet or moldy ones.


πŸ”₯ 2. Roast the Groundnuts

Roasting brings out oil well and improves taste.
You fit:

  • Roast manually (with drum + firewood)
  • Or use industrial groundnut roaster

Stir well to avoid burning.


🧹 3. Remove the Skin (Dehull)

After roasting, use hand or dehulling machine to peel off skin.

Tip: Use winnower or sieve to separate shell from nut.


πŸ—οΈ 4. Grind and Press the Groundnuts

Use an oil expeller or pressing machine to extract oil.

πŸ’‘ Types:

  • Manual oil press (small-scale)
  • Motorized oil expeller (faster and better yield)

You fit get machine from:

  • Nnewi (Anambra)
  • Lagos
  • Online agro equipment dealers

🧴 5. Filter and Bottle the Oil

Let oil settle, then filter with:

  • Clean cloth
  • Mesh sieve
  • Or oil filter machine

Bottle with clean plastic or glass bottles β€” label am if you want to brand.


🧁 6. Package the Groundnut Cake (Kulikuli)

Don’t waste the cake β€” sell to:

  • Feed millers
  • Poultry farms
  • Local markets

πŸ’° Startup Cost Breakdown (Small Scale)

ITEMESTIMATED COST
1 Ton Groundnut₦200,000 – ₦250,000
Roasting Drum₦30,000 – ₦50,000
Oil Expeller (manual)₦80,000 – ₦150,000
Bottles/Packaging₦20,000 – ₦40,000
Labour + Misc₦50,000

Total: Around ₦400,000 – ₦600,000 (can scale down if you already have some equipment)


πŸ“¦ Where to Sell Groundnut Oil

  • Local markets
  • Mini marts
  • Restaurants
  • Online (Jumia, WhatsApp, Facebook)
  • Export (if well branded and certified)

πŸ“’ Npower Farmers Support

We dey help members:

  • Source raw groundnuts
  • Get machines at better prices
  • Promote your finished oil online
  • Connect to poultry farms that buy groundnut cake

πŸ‘‰ Visit: https://npowerfarmers.ng


πŸ¦ƒ Turkey Sales Still Ongoing!

Healthy, imported foreign turkeys ready for:

  • Poultry farmers
  • Resellers
  • December consumption

πŸ‘‰ Place order now: https://npowerfarmers.ng/foreign-turkey-sales


πŸ“² Stay Connected

βœ… WhatsApp Channel: Click here to join
βœ… Telegram: t.me/farmersupdates
βœ… Facebook: facebook.com/NPFCS


πŸ’‘ Moral of the Day:

You no need million to start oil business. From small roasting and pressing, you fit grow to big factory. Start small, move fast!

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