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How to Start a Groundnut Oil Production in Nigeria

Groundnut oil is popular in the Nigeria region and there is a huge market for groundnut oil but the production level is less than consumption. Therefore, a peanut oil making business can be profitable. Are you interested in starting a peanut oil manufacturing plant or factory in Nigeria? Here is an article about peanut oil production in Nigeria and starting their own peanut oil mill plant.

The General Process of Groundnut oil production

From harvested groundnut to pure edible peanut oil is a complex process. The main groundnut oil production process is preprocessing, pre-pressing, filtration and crude peanut oil refining.

This is a good opportunity for businessmen to invest in the oil mill.

First of all, you have to be registered in NAFDAC (National Food and Drug Administration and Control Agency) to start a business in this sector in Nigeria. You can also get help from companies that advise and register about the sector. After setting up your business plan and achieving good feasibility and getting registered, you will be ready to invest in this field.

The equipment needed to build your peanut oil machines can be supplied by GOYUM SCREW PRESS at affordable prices.

Different Set of Machines included in Groundnut Oil Extraction Plant

Groundnut oil extracting plant consisting of oilseed cleaning, crushing, oil pressing, filtration and crude oil refining machines.

Steam Boilers

Steam is generated with the help of a water feed pump in the steam boiler unit. The output stream is transported to the expeller’s cooking kettle where the seeds are pre-conditioned and cooked with mild steam for the same results of groundnut oil extraction.


These are nuts processing equipment according to the type of raw material. All of these are used for the pre-oilseed treatment process to prepare the nuts before crushing them.

Steam Cooking Kettle

The pre-air conditioned oilseed cooking kettle is fed into the feeding hopper for the steam heating purpose of cooking. Seeding is necessary for high recovery and long life of oils. Round kettle and long kettle designs are available for specific oilseeds to achieve proper results in oil production.

Goyum Oil Expeller

The cooked peanuts will come to the expeller where they are crushed inside the chamber. The main production will be cooking oil and the secondary oil by-product will be cake. Our oil expeller machines are very strong and heavy duty to use any type of raw material. This will produce the best quality of peanut oil.

Oil Filter

The crude oil is pumped into the oil filter to be cleaned. The filtered oil will be completely transparent, fresh, pure and natural in taste without any chemicals. The filter press is specifically designed for better filtration and better quality of the groundnut oil.

The initial capital cost of a small to medium-sized peanut oil processing facility in Nigeria ranges from $40,000 to $300,000. This amount will cover the required land, construction costs and equipment.

Groundnut Production Market in Nigeria

Nigeria is Africa’s largest peanut producer. This year, production is expected to be around 3 million metric tons, making it the third-largest producer in the world after India and China. Groundnuts in Nigeria are mainly produced in the northern states: Adamawa, Niger, Taraba, Kaduna, Benue and Kano.

List of Countries by Peanut Production

CountryProduction (Tons)Production per Person (Kg)Acreage (Hectare)Yield (Kg / Hectare)
United States of America2.578.5007,867626.0604.118,6
Burkina Faso335.71516,583420.000799,3