How to Export Palm Oil from Nigeria

Palm oil is edible oil used in the preparation of many dishes. It is common to West African countries, derived from kernel.

The major producers of the oil are Indonesia, Malaysia and Nigeria accounting for 40% of world’s production. To export palm oil you need to establish contact with foreign buyers.

Commodity export is very lucrative business with moderate challenges. You need finance, supply of the product, buyers, export license.

The good news is that the business is not saturated and has room for more investors. Last year (2017) Nigeria’s domestic consumption outweighed the production. Therefore investors could concentrate on local market or export opportunities.

Oil Palm Products

Before venturing into the palm oil business you need to differentiate different oil palm products. Common products derived from oil palm are Palm Kernel Oil, Deodorized Palm oil. Others include Palm Kernel Oil, Palm Kernel Shells, Palm wine, RBD-PKO/PO refined palm oil products.

• Palm Kernel Oil
• Deodorized Palm oil
• Palm Kernel Oil
• Palm Kernel Shells
• Palm wine
• RBD-PKO/PO
• Refined Palm Oil Products.

Opportunities in the Oil Palm Trade

Bulk Trading

Opportunities for investors in the palm business are bulk trading, palm oil processing, running a plantation. Bulk trading involves purchasing and stocking large quantities of the product. The trader earns on margin or during scarcity of the product.

Thing to consider as a bulk trader include good storage facility, funding. More requirements are purchase of quality products, transportation and handling. Palm oil is very durable with a long shelf life even under extreme weather conditions.

Palm Oil Processing

The shortfall in the product in Nigeria is due to outdated traditional processing methods. Modern mills produce high grade products using fabricated or branded equipment. The level of purity depends on the quality of the palm fruits, processing method.

Start a Plantation

The requirements for a successful plantation are quality seedling, good farm land. The investor needs startup capital, direct labor or mechanized equipment. It takes several years before the oil palm produces commercial quantity. This type of investment is long termed, recurrent.

How to Export Palm Oil

Documentation to Export Palm Oil

To export palm products you need some documentation. Documents are company registration, quality assurance and commercial documents. More include tariff concession, shipping documents.

• company registration
• quality assurance
• commercial documents
• tariff concession
• shipping documents

Register the Company

An individual looking to export palm oil could register as a sole proprietor. While medium/large companies can incorporate as a limited liability company.

The regulatory body for company incorporation in Nigeria is the Corporate Affairs Commission. Register your business name, pay required fees.

The Nigerian Export Promotion Council

Any exporter of goods needs to register with the Nigerian Export Promotion Council. They provide viable information on best practices for exporters. Members also get access to foreign buyers, learn regulatory requirements for export.

Quality Documentation

Europe, America and other export destinations have strict rules of compliance. The product should have quality assurance certification. The label should include address of processing company, NFDAC number, and date of production/expiration. The product should be properly packaged, sealed.

Shipping Documents

The mode of transportation determines the type of documentation. The most cost effective method is shipping.

Contact a good shipping company with experience in commodity export. They will provide useful information and handle the documentation. Some documentation involves customs, export agencies, buyers