Are you thinking about getting in on the soya oil making business sector in Nigeria, which is booming? The fast-growing soybean oil manufacturing business offers Nigerian entrepreneurs a profitable opportunity. In 2021, Nigeria, Africa's biggest economy with 200 million customers, imported 1.2 million tonnes of soybean oil worth over $800 million, a 42% rise from the previous year.
The business is expected to reach $1.5 billion by 2025, driven by rising health awareness, population expansion, and cooking oil consumption. The expected initial capital expenditure for important equipment is 3 to 5 million naira, with an additional 10-15 million for various needs. Despite its complexity, a successful soybean oil manufacturing process factory might earn over 200 million naira in four years.
Smart entrepreneurs may make much money in Nigeria's multi-billion dollar cooking oil sector with market knowledge, a farmer network, and enough finance and equipment.
Investing in this fast-growing business has never been better. Here are the details for setting up a soybean oil manufacturing process in Nigeria:
| Detail | Small-Scale | Medium-Scale | Large-Scale |
|---|---|---|---|
| Raw Material | Soybean seeds sourced locally in Nigeria through contracts | Same | Same |
| Electricity Requirement | 500 KVA transformer | 1000 KVA | 2000 KVA |
| Manpower Required | 20 workers | 50 workers | 100+ workers |
| Total Space | 3 acres | 5 acres | 8+ acres |
| Estimated Project Cost | $150,000 - $200,000 (5 to 50 Ton/day) | $300,000 - $400,000 (1000 liters/day) | $500,000+ (2000+ liters/day) |
For licenses and certificates, here is a comprehensive table you need to consider these:
Equipment Needed For Soya Oil-Making Business
Seed Cleaning and Handling Equipment
The first crucial stage in soybean oil manufacturing is washing and processing the raw seeds.
Buy sturdy destoning machines, gravity separators, seed washers, and elevator buckets to efficiently remove mud, metals, sand, stones, immature seeds, and other soybean lot contaminants.
Specialized seed washing equipment maintains purity before extraction and reduces oil expeller wear.
Cracking, boiling, and flaking clean soybean seeds before oil extraction is essential. Bucket elevators, inclined belt conveyors, distributors, and hoppers are crucial to seed handling.
They carry soybean seeds vertically and horizontally between the cleaning unit and the cooking kettle. Based on manufacturing capacity, choose rugged screw, belt, and pneumatic conveyor systems with low downtime.
Seed Preparation Equipment
Preparing cracked and cleaned soybeans for the oil expeller is crucial. Essential steps include dehulling, frying, conditioning, and flaking. Strong, low-maintenance seed processing equipment boosts oil output and efficiency.
To dehull soybeans, buy modern machinery called hull separators. Then, a steam-jacketed kettle precisely cooks the dehulled cotyledons. Here, soybeans are cooked to maximize moisture and oil release. Adjustable steam control valves make heavy-duty kettles easier to customize.
After cooking, a Seed Crushing Plant, equipped with a roller flaking machine, crushed the soybean into homogeneous flakes with maximum oil cell exposure. Food-grade stainless steel flaking machines are easy to use and avoid contamination. Integration of robust cooling screw presses may help save energy in oil extraction.
Oil Extraction Equipment
Soybean oil extraction requires robust expellers, filters, and pumps. Consider processing capacity, energy demands, maintenance, and after-sales assistance when selecting a palm kernel oil expeller.
Screw-type oil presses work well for medium-sized applications. Hydraulic or spark ignition expellers configured for soybean's ideal 20% oil content may assist bigger operations.
Large mills extracting over 2000 tons per year may use commercially established solvent extraction plants employing food-grade hexane. However, this capital-intensive method requires experienced workers and strict environmental regulations. Good oil-collecting tanks, pumps, and filters help discharge.
Filtration and Refining Equipment
Pre-packaging crude soybean oil requires filtering and refining to remove gums, waxes, and color compounds. Progressively purify the oil using horizontal leaf, bag, and activated clay tower filters.
An edible oil refinery plant, equipped with modern auxiliary equipment, is used to optimize output purity by combining, deodorization, winterization, and bleaching. Based on output size and quality criteria, strategically buy neutralization, steam distillation, vacuum pumps, filters, centrifuges, and dosing equipment.
Storage Tanks and Filling Equipment
Finally, store refined soybean oil in food-grade stainless steel containers to avoid contamination and maintain quality until packing. Buy worldwide bulk storage tank systems with customizable capacity and automatic temperature adjustment. Storage and transport are more accessible with non-corrosive plastic barrels or jerry cans.
Automatic volumetric dosers and piston fillers maximize filling efficiency and minimize bottling waste. Optional capping mechanisms provide leak-proof packing for a longer shelf life. Integrating automated labeling equipment lets you brand and label your soybean oil-packed versions for B2B or retail.
Process For Soybean Oil Production
The soybean plant, Glycine max, is the source of soybean oil, which comprises between 18% and 20% oil by weight. The nutritional value, adaptability in cooking, and low price make it one of the most popular cooking oils in the world.
The primary processes for refining raw soybeans into this transparent, amber-colored oil are:
- Cleaning : Cleaning the incoming soybeans eliminates contaminants such as dust, grime, stones, etc. The oil output and quality are both improved by this process.
- Cracking & Dehulling : Cracking apart soybeans and removing their outer hulls reveals their oil-rich cotyledons.
- Flaking : Rolling cotyledons into flakes enhances oil extraction by increasing the surface area.
- Conditioning : Cooking the flakes at a certain temperature facilitates oil extraction while protecting the enzymes.
- Pressing : Pressing the flakes of soybeans yields crude oil. To get greater yields, modern big plants use hexane-based solvent extraction.
- Refining : To get refined, stable, and odorless soybean oil fit for consumption, crude oil goes through procedures such degumming, neutralization, bleaching, and deodorization.
- Packaging : Shipped in food-safe containers, refined soybean oil is now ready for purchase.
Estimated Costs
A soybean oil factory startup in Nigeria necessitates a substantial financial outlay to secure prime industrial site, design and build a suitable plant, acquire necessary oil extraction and refining equipment, and fund early raw material and operational costs.
Projected Expenses for a 5 to 50 Ton/D soybean oil manufacturing plant in Nigeria:
| Cost Component | Estimated Investment | Percent of Total Capital |
|---|---|---|
| Land and Factory Building | $20,000 - $30,000 | 15% - 20% |
| Machinery and Equipment | Starts from $500,000 | 45% - 50% |
| Installation and Commissioning | 5% - 10% | |
| Total Fixed Capital Investment | Starts from $1 million | - |
| Working Capital for Initial Months | $20,000 - $30,000 | - |
Operations and Maintenance
Raw Material Sourcing and Handling
Develop relationships with reliable regional dealers to guarantee soybean quality year-round. Check raw seed batches and rotate stock first-in-first-out while controlling pests in storage facilities. Durable jute bags make inter-unit transport easier.
Staffing and Labor Costs
Hire mechanical engineers to oversee seed preparation, solvent extraction, oil filtering, and safety. For 24/7 workflow, use semi-skilled assistance and line operators in 3 shifts. Wages should reflect experience and expertise.
Utility Costs
Soya oil making business processing needs stable power, water, steam, and biomass. Optimize yearly utility expenditures with energy-efficient and automated gear. Consider using green energy.
Service and Maintenance
In-house equipment maintenance and yearly maintenance contracts for inspections, component replacement, etc., reduce catastrophic breakdown-related downtime.
Potential Returns on Investment and Profit Margins
- Production Expectations : At 70% capacity, efficient 5 to 50 Ton-per-day mills earn upto USD 250,000 annually.
- Payback Period : Smaller soybean oil units with careful execution provide ROI in 2.5 years.
- Profit Margins : Cost management and consistent volumes should boost profit margins by over 25% before considering scalable exports to double benefits.
Government Regulations and Incentives
- Tax Incentives : Import oil mill equipment and claim GST input credits, customs duty exemptions, and concessional financing.
- Loans and Grants : Find 5-year collateral-backed loans to cover 50% of capital expenses—request project subsidies and utility connection fee waivers from government agencies.
Conclusion
Many things go into starting a soybean oil business in Nigeria, such as how much the equipment costs and how much it can produce. In Nigeria, a small soybean oil factory can cost anywhere from $20,000 - $150,000. or more, based on what you need it for.
But the starting cost of oil handling equipment is only one part of your investment. You'll also need to plan for costs like setup, upkeep, and other running costs.
To figure out how much the machine can do, think about how much you need to produce. For instance, a small soybean oil mill plant sent to Ghana made 25 tons of usable oil from beans and nuts every day. The items used in this plant cost about $500,000 (equipment).
N & T Engitech, a leading edible oil factory and industrial spares manufacturers, can provide you with the expertise and machinery you need to start a business making soybean oil in Nigeria. You should start with a small oil mill plant and add on to it as your business grows.
