Investment in palm oil is becoming increasingly inevitable amid prevailing economic challenges, as the product remains a daily household necessity across the country.
The increasing number of hotels, eateries, and other hospitality businesses expanding across cities and rural communities has further heightened demand for palm oil.
Beyond household consumption, palm oil investment offers a viable pathway to sustainable economic growth for individuals willing to venture into the sector.
The commodity is not only used for cooking but also serves as a key raw material in the production of cosmetics, soaps and other industrial products, making it a highly sought-after item.
Industry players note that palm oil investment can be highly lucrative due to its constant demand and wide application.
Investors also stand to contribute to employment generation, as storage, transportation and distribution of palm oil require additional labour, particularly to meet the needs of restaurants, canteens and food vendors that depend heavily on the product.
In addition to direct sales, palm oil storage and distribution present opportunities for investors to earn extra income alongside other business ventures.
As an edible commodity consumed nationwide and an essential input for manufacturing, palm oil remains a dependable investment option.
Palm oil has continued to become one of the most important commodities in the food preparation chain as stakeholders say entry into the business can yield quick returns due to its steady market demand.
Speaking with LEADERSHIP Weekend , an academic who also engages in farming as a business, Dr Innocent Ogbonna, advised prospective investors to strategically time their investments by purchasing and storing palm oil during periods of surplus.
“Palm oil is usually in surplus from December to April, while prices often peak between July and September,” he said. “An investor who puts in about N300,000 can make as much as N500,000 within four months.”
He, however, cautioned that palm oil investment is labour-intensive, requiring both time and financial commitment, particularly in handling and storage.
Experts also emphasise proper storage conditions, noting that palm oil should be kept in a cool, dark place, away from heat sources such as ovens, refrigerators or freezers, to preserve its quality.
Another respondent, Mrs Ojo Agnes, a palm oil trader from Edo State based in Lagos, urged prospective investors to carefully study suitable storage facilities to ensure the oil lasts for an extended period.
Mrs Ojo, who trades at the Oke-Arin market on Lagos Island, further advised would-be investors to secure adequate startup and working capital, as well as sufficient storage space. According to her, the palm oil business requires proper sanitation and ample space due to the nature of the product.
