The Business of Red Oil Part 3: Buying Palm Oil in Bulk in Nigeria

Palm oil, that staple red oil that you can find in every kitchen across the country. Used for various soups and sauces, from Egusi to Vegetable soup. The Business of Buying Palm Oil for all those Kitchens is a multi-billion Naira industry that’s over 35 years old.

As you can see, because of its usage, palm oil purchase and supply has remained a viable business for so long. A business that has consistently been producing over 970,000 metric tons of palm oil yearly, for local markets and for exports.


Palm oils current price as at May 15th 2021 for 1 metric ton international markets stands at $1036 or N502,460. 

Where does all this palm oil come from?

It still originates from local Mills in various states in Nigeria to the market women who handle its sale and distribution of nationwide and internationally, which is largely unregulated and documented by the government.

Which makes it one profitable business to get started on in 2016.

Getting started in Palm Oil purchase and supply, means getting to know how the business operates, where to buy, who are the players in various state etc.

Because without the information, you will just waste time an effort groping blindly in the dark and losing money.

So what do you need to know first?

Buying palm oil in bulk, Where to go?

Palm oil is usually milled from the palm fruit bunch by both small and large plantations. The plantations are usually the best place to go if you require large quantities of Crude palm oil.

Local Palm Oil Mill

You can also meet with rural Road side Mills,

If you are from a palm producing state, I.E Edo state, Delta, Ekiti, Cross River, Awka Ibom, Imo, Abia, Anambra, Rivers and Ebonyi State. You will usually be accustomed to seeing rural road side mills as you move around towns in each local governments of the state. Sometime you might have upwards of 5 mills per area.

Sometimes these milling my not be alone the roads but further inside. To find them you might have to ask people around or follow your nose for that palm kernel oil smell.

What types do you buy?

Most of us believe that palm oil is just palm oil. The truth, just as soups come in different flavors so also does palm oil. There are two types of palm oil you need to pay close attention to when you go buying in bulk.

Low moisture content and high moisture content palm oils.

Palm oil types

Have you ever gone out to buy palm oil from your local food sell and notice that it’s a chore to get the oil out of the bottle? That bottle of palm oil has low moisture content meaning, it’s rich in fatty acids that make up the palm oil plus it tends to turn solid when not at room temperature.

It’s really good for cooking and can be stored for long periods of time without any significant change in taste.

Now as you can imagine, Palm oil with high moisture content, is usually more fluid. That Palm oil that when you want to use it flows right out of the bottle without hindered. You notice that the longer it stays it changes taste. It is usually better when it’s used immediately for cooking, but never a good idea for storing for long periods.

When buying Palm Oil in bulk, you stand to make a lot if you buy it pre rainy season when it is cheaper.

It’s far better for you to just buy and store in bulk than buying when demand goes up. Because as demand goes up during August September so does the price. 

How much do you sell to you customers?

As at 20th May 2021, Palm oil is being sold at N15, 500 per 25 litres in the markets in Lagos. While at village markets you can get it at between N12,000 and N13,000.

Who will buy bulk orders from you?

You can supply bulk to various local markets and major cities, all depending on the price you purchase during storage period. It’s always better to make inquiries various people and place, across the Nigeria about the price in their markets. This will give you the opportunity of locating the best place to supply your Palm Oil.

If you are looking for companies and individuals to supply Palm oil, Palm kernel Nuts, Palm Kernel Oil and Palm Kernel Cake

Follow the link below

Companies and Individuals who buy palm oil, palm kernel nut, palm kernel oil and palm kernel cake

How do you export?

When your current supply far outweighs your demand, it’s better to begin looking for markets outside of the country.  If you are looking for international buyers please follow the link to get access to companies International buyers of oil palm products


Are you looking to start producing Palm oil?

Would you like to know what it entails?

Are you interested in getting connected to buyers of palm oil across Nigeria?

Then Join our online one on one Palm Oil Production and Supply Training

This training will provide you details on

  • Best location to locate your mill
  • How to source for palm fruits to mill
  • What Equipment required and capacity of machine needed
  • Contact of Machine fabricator
  • Production planning and staff numbers
  • Output details of Fresh fruit bunch to oil and palm kernel nuts and oil
  • Buyers you can supply your palm oil and palm kernel to

To find out more about this training click the button below


The business of palm oil can be very lucrative, when you know the right sources to get it, how best to store it and have the ready market to deliver it to.

I hope this detail helps you in your decision to get started or run it smoothly.

If you have any questions or want more details about local and international buyers of palm oil.

Please feel free to drop a comment.

The Business of Red Oil Part 3: Buying Palm Oil in Bulk in Nigeria

27 thoughts on “The Business of Red Oil Part 3: Buying Palm Oil in Bulk in Nigeria

    1. Hello Mr Adeniran.

      Glad to hear you hve your own plantation, if its palm oil you want buyers for, check out the part three of our post on “The business of palm oil part 3”. This should give you some insights into getting buyers for palm oil.

    2. My name is Phyllis kanma, am a palm oil dealer who have been dealing with just d consumers but now I want to expand my scope of business by doing wholesale supplies to companies. Pls may I have d list of viable companies dat buys palm oil and probably cashew too in wholesale large quantity for export and distribution. I reside in abuja and want d companies within abuja for now.

  1. hhello sir,
    im abdulrazaq,from lagos,i just want to venture into supplying of palm oil.whewre cani get it cheaper.rasmod7777@gmail,com

  2. Im Intrested In The Oil Thing But I Need To Start Small Like 10 Cans, I Also Need A Guaranteed Market Where I Can Be Saling It On Whole Sale Bases So That I Can Be Growing. Pls Is There A Market For It Like That? Joel

  3. Good afternoon. My name is Mukky. I am about to venture into palm oil storage business. My major problem is getting supplier. Do you know of any solid contact? I need high quality palm oil like 40kegs of 25litres. Also i do not quite understand something from your post.Do you mean that low moisture palm oil is of better quality than high moisture palm oil? How do i determine which is of best quality?

  4. I just want to appreciate you for your kindness to humanity. God Will prosper and show you unimaginable favour. Once again thank you for interest in other people wellbeing.

    Israel Negedu

  5. Thanks so much for the insightful lessons personally I have gained so much and looking forward to get connected to some companies I can supply .bless you sir
    Ebiloma mrs.

  6. Hello good afternoon
    My name is Uche .I just want to commence the sale of palm oil.
    I live in ekiti and I have located a village to get t the oil but I need a market to sell after stocking

  7. Am Clara from lagos, please I want to venture in palm oil business, how can I get it in cheaper price and to consumer

  8. Hi my name is Joy,i have been selling at a retail price but now i want to start selling at wholesale price please where can i buy at a cheaper rate for drum, thank you.

Feel free to ask me any questions

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