Nigeria is one of the largest palm oil producers in the world, and the palm oil industry plays an important role in Nigeria’s economy. The benefits of palm oil plantation in Nigeria are analyzed as follows:
From the fourth year, it can provide 12.5 tons of red palm oil per hectare. The minimum price for a tonne of red palm oil was 150,000 naira ($406), and the total revenue was 37.5 million naira ($101,700). 7.5 metric tons of palm kernels can also be obtained per hectare, and the annual income can reach 26.25 million naira. Achievable gross income of 63.75 million naira minus annual operating expenses of 15 million naira, net income of 48.75 million naira ($132,210).
The cost of setting up a palm oil plant with 100 tons varies depending on several factors such as the location of the plant, the type of equipment used, the capacity of the plant, and the cost of labor. According to a report by IMARC Group, the total capital investment required to set up a palm oil processing plant ranges from USD 1,500 to USD 5,000 per tonne of processed palm oil.