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Small Scale Coconut Oil Production In Nigeria: Complete Guide

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Eno Johnson
Eno Johnson is my name, I am an entrepreneur in the making. This blog was birthed because I needed a platform to pen my experience down in Agriculture and business.

Large scale coconut oil production is very expensive but you can start from small scale. Because the capital is less and it can easily be managed. The use of machine is good for commercial coconut oil production. But you can produce homemade coconut oil for family use without machine. it is very simple and straight forward. Coconut oil is used for cooking, for cream and soap production.

Many people are now aware of its rich benefits especially the role coconut oil play on our skin and hair. Go to many homes today you will find coconut oil at least in a small container.

Cosmetic companies now use coconut oil as their main ingredients. Some people combine it with Shea butter, black palm kernel oil or honey for greater enhancement on the body. Coconut oil business is very lucrative; a litre of coconut oil cost as much as #5,000. These and many more reasons will make coconut oil to sale any day anytime.

READALSO: How To Start Small Scale Moringa Oil Production In Nigeria
Coconut oil market is enjoying steady growth both locally and internationally. The global export volume of coconut oil in 2015/2016 was estimated at 3.32 million metric tons. In 2017/2018 it was estimated at 3.44 million metric tons. Out of which Nigeria produced about 246,000 metric tons. Indicating that we are gaining steady growth. The sudden surge in the demand for coconut oil is as a result of in-depth awareness of its health benefits. Entrepreneurs can take this advantage and invest into coconut oil production business.


Coconut oil is a consumable oil extracted from the meat (kernel) of matured coconuts that are harvested from matured coconut palm trees. The oil from coconut has high saturated fat content, slow to oxidise, resistant to rancid and can last for more than 6 months at a temperature of 24*C without getting spoilt. 

READ ALSO:How To Start Black Palm Kernel Oil Production In Nigeria

Coconut oil production business is one of the most profitable small scale production businesses. This is because the cost of production and the risk involved in it is not as high as other ventures.


There are many ways of extracting oil from coconut kernel; hand made and industrial coconut oil production. Note that the coconut to use must be very matured. A young coconut kernel is difficult to process, it will not produce much oil. Any oil extracted will be below quality



  • Knife
  • Grater
  •  Blender
  • Bowl
  •  Pot
  • Jar
  • Chiffon 


  • Break the coconut and bring out the kernel
  • Cut them into pieces and put them into blender. or grate and blend, it can help preserve your blender.
  • Add a little water to make it blend well.
  • Put chiffon cloth and filter on a jar with mouth.
  • Turn the shredded coconut on the cloth and squeeze out milk into the jar.
  • Press it very well so that all the milk can come out.
  • Leave it for 24 hours or over night for the milk to set and the oil to separate.
  • A layer of cord will appear on top of the jar.
  • Put the jar in a refrigerator for the cord to harden quickly.
  • You can put it in a room that is cold in place of refrigerator.
  • Scoop the cord out leaving the pure virgin coconut oil in the jar. You can use the cord to feed livestock, prepare coconut rice or spice other foods. The pulp can be ground into powder for cake making, cookies preparation etc.


  • Copra cutter
  • Oil expeller
  • Screw conveyor
  • Bucket elevator
  • Micro filter
  • Volumetric
  • Filling machine
  • Storage tanks
  • Wooden storage drums
  • Steam jacketed kettle
  • Baby boiler
  • Filter


  • Coconut pulp after drying is called copra, 
  • The pulp can also be called meat
  • Copra meal gotten after extraction is also referred to as cake
  • the moisture content down to 6% -10% ,copra fat is 57% -75%, copra meal after extracting coconut oil can be used as animal feed. Coconut flesh can also be processed into coconut powder, copra and other foods.


The whole method of processing coconut oil through industrial process involves;

  • pretreatment of coconut
  • extraction of oil and
  • refining the oil 



  • crushing section,
  • cooking and roasting section
  • oil pre press section
  • final press section
  • coconut cake receiver
  • crude oil filter section
  • degumming section,
  • deacidification section
  • , decolorization section,
  • deodorizing, section
  • Final processed oil

Crush and cook or roast the coconut pulp. Press the crushed coconut for the first time. Press the cake again to bring out the remaining oil from it. Remove the cake and filter the oi. Degum the oil and deacidify the oil. Decolour and remove other from the oil then package the extracted oil.



In this process fresh coconut meat (Copra) is used in extracting the oil.  The kernel is crushed  through wet milling, but it can be dried and screw press applied to extract the oil.

The extraction is done through mechanical means free from high heat so as to preserve all their nutritional values.  The wet method produce less oil than in dry process about 10-15% lower. And it require much energy before you can successfully extract oil.

 Virgin coconut oil contains 10 fatty acid that enhance human immunity that protects it from germs. It is used for cooking and salad making. The oil contains plenty of mineral, vitamins and anti oxidation properties.


Heat and chemical solvent are applied to the copra mainly to eliminate taste, smell and impurities. It has more nutritional value than virgin coconut oil since it is refined.

READ ALSO: How To Start Vegetable Oil Production In Nigeria

Conventional coconut oil can be processed by using hexane as a solvent to extract the oil. It yield oil 10 times more than the ones gotten from millers and expellees. The oil is refined in other to remove free fatty acids so as to reduce rancidification.


Pure coconut oil is made from copra that has been exposed to impurities such mold. And could pass through kiln, solar, smoke drying because of the mold just to reduce the impurities. Cheap filtration method is used to refine the oil. It gets rancid easily and has short shelf life.


This is carried out in such a way that a fraction of the oil undergo hydrolysis after extraction when water is added to it.


High cost of productionLack of financesPoorly managed supply chainLack of experience Low consumer purchasing power


Coconut has several benefits including health benefits, nutritional benefits and economic benefits.


  • It soothes dryness and irritation from rashes
  • Reduces wrinkles and controls ageing 
  • Treats eczema
  • As a deep-conditioner
  • To remove eye makeup
  • As a body moisturiser
  • To clean your face


  • Prevents Breakage
  • Regular use of coconut oil would make your hair softer and more lustrous than before. It makes hair healthy and shiny.
  • Boosts Blood Circulation
  • Rich in Nutrients
  • Coconut oil is loaded with natural antioxidants and nutrients such as Vitamin E, Vitamin K and Iron.  
  • Fights infections because of its Antibacterial, anti fungal antioxidants, antiviral and antibacterial properties. 


It is an important base recipe for the production of soap. Coconut oil is soluble in hard water and salt water than any other soap that is made from other oil sources. The soap is clear in colour when melted and bright when hardened. 


Coconut oil in the global market is growing in demand so you can be producing mainly for export and be making money in dollars. Meanwhile, you can supply locally to food companies, Cosmetics Industries and Pharmaceutical Industries.

Package the oil in small containers and supply to supermarkets, shops, market women, homes, individuals etc.

If coconut oil business was useful to you, Please follow us on Facebook and Twitter Use the comment box for your questions and get a prompt response and don’t forget to subscribe to our newsletter below, just enter your name and email address. Lastly, if you enjoyed this post, why not share with it your friends by making use of the share buttons below the newsletter form! In case you want us to write on any other topic, please let us know in the comments section or contact us. We appreciate your support Thank you

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