One of the important areas the Government promised to pay much attention is manufacturing. In fact, the important sectors to pay attention apart from manufacturing are Agriculture and Technology There is urgent need to boost local production for export to increase the non-oil export values.
Although Nigeria depends heavily on the oil industry for its budgetary revenues, Nigeria is predominantly still an agricultural society. Approximately 70 percent of the population engages in agricultural production at a subsistence level. Agricultural holdings are generally small and scattered. Agriculture provided 41 percent of Nigeria’s total Gross Domestic Product (GDP) in 1999. This percentage represented a normal decrease of 24.7 percent from its contribution of 65.7 percent to the GDP in 1957. Today Agriculture contributes less than 30% of total GDP. The decrease will continue because, as economic development occurs, the relative size of the agricultural sector usually decreases. This is one of the reasons why there is huge increase in unemployment rate in Nigeria. Large increase in unemployment rate has also increased the rate of crime- kidnapping, terrorism and other types of crimes in the country.
Agriculture remains the only way out. The production of agricultural produce is one aspect; another most important way globally is the addition of value to primary agricultural produce. The value chain of oil palm is discussed below; – The end products (value chain) that will be obtained from the proposed project will include refined palm oil; Crude palm oil; refined palm kernel oil; Crude palm kernel oil; Palm kernel cake for animal feed production; Palm kernel sludge and Crushed palm kernel shell for bio-fuel
Palm oil is known to be an excellent source of bio available calcium and least allergic of all edible oil available. The total demand of edible oil is 16,570,000 tones (per head 1120 ml) and supply is 13,326,000tonnes including the imported edible oil). The demand-supply gap thereby opens up an opportunity for investors in this sector. Today the importation of palm oil and palm kernel oil into Nigeria gulps about US$690.0Million annually for commercial, home and industrial purposes. This huge figure calls for urgent need to boost the local production of palm produce.
After our thorough research into the market, we found out that the demand for palm kernel oil (PKO), for commercial, home and even industrial purposes will continue to increase as the year progresses and this is the same for other by-products making it a lucrative business with rewarding incomes. The demand for various products of oil palm is very high and the demand will continue to increase in many years to come. Some of the industries that will not do without palm produce are Cosmetics, Food, Animal Feed, Soap Manufacturing, Confectioneries, and Bio-diesel among others.
Production and packaging Plan
The plants and machinery for setting up of the project, both producing and packaging plants for each of the products both locally and export markets that will be of internationally acceptable standards are locally available. Our available local Technology will give you any quantity, quality and efficiency you require to produce and package for export.
However, arrangements can be made for foreign machines on request. There are foreign machines from China South Korea, Japan, and India etc. Prospective investors would be given the details and would be comprehensively worked out in the bankable feasibility studies report.
Two different types of production processes could be employed. The processes consist of different sections including; procurement and storage (i.e. raw material stores), production, processing and storage and packaging.
The necessary equipment that will be used for this business includes; bunch thresher, boiler, nuts and fiber separator, screw press, oil storage tanks and storage drums, gallons, scoopers, bowls, basins among others.
The product packing plan comprises of oil which will be packaged into 4-litre keg and 1litre, 5liters, 10liters, 20liters and 25liters kegs for both palm oil and kernel oil. There is plan to package in drums of 200liters.
Marketing Strategies
Apart from refining into vegetable oil that can be bottled and serve the households the envisaged products can be sold to industries. The numerous processing industries as well as local dealers are the first targeted customers. All industries in the areas of cosmetics, food, animal feed, Soap Manufacturing, Confectioneries, and Bio-diesel among others are target markets
Promoters can increase the production and sales of palm produce outside the country exporting across West Africa, Africa, Europe and America. We will give details of the buyers within the country and outside the country to prospective investors. For the few competitors in palm oil processing and distribution companies, strategic plans are on ground to surmount any pressure that might arise.
Financial implications and Funding
The cost of establishing this project varies depending on some factors like capacity, the type of products that investors intend to go into, proposed location and other related factors. The estimated cost will be given to prospective investors. Part of the funding of the project will come from stakeholders of the company and counterpart funding from some recommended financial institutions.
For the funding, the Central Bank of Nigeria (CBN) has earmarked funds to fund and encourage investors in this sector. Prospective investors would be given the details on how to establish and run the project profitably All other essential details including accommodation, manpower, production technology, packaging and marketing (both local and international) will be embodied in a bankable and comprehensive feasibility report for prospective investors.
Investment Analysis
The proposed project is always very lucrative. The return on investment is between 87% and 180% and payback period is within 1-3years of operations.
Implementations
For details on comprehensive & Bankable feasibility studies, Business Plan; procurement & installations of strong and durable machines, internationally acceptable packaging methods, Export markets and funding arrangements and Recruitment & Training of manpower please contact the writer. We assist in reviving of death projects.
We observed that some prospective investors would prefer to go to internet and copy pre-feasibility reports done in other parts of the world. The reports are not in the business environment of Nigeria, so it could be misleading. For details contact us
Uba, Godwin
56, Ishaga Road (1st floor), Surulere, Lagos
Tel: 08034494437(WhatsApp), 08023664368 Email: ubagodwin@yahoo.com
