In Nigeria, soybean oil is increasingly favored by middle-class consumers in urban areas. This trend is driving investments in soybean processing.
In Nigeria, Uba Sani, the governor of Kaduna State, kicked off construction work on a soybean oil refining plant in Kutungare, located in the Igabi local government area, on May 13. The announcement was made in a statement posted on the State government’s Facebook page.
With a total cost of $50 million, the project is financed by Sunagrow International Oil Limited, specializing in the production and marketing of edible oil. While the duration of the construction work has not been disclosed, it’s known that once operational, the plant is expected to produce 500 tons of oil per day.
“The establishment of this soybean processing project will increase value addition in the sector through the production of soybean oil or flour. It perfectly aligns with our goal to attract investments in the State and drive economic growth in the region,” stated Mr. Sani.
For its raw material supply, the plant can rely on the state’s soybean sector, which accounts for 12% of the country’s total production, ranging between 1 and 1.2 million tons per year, according to the United States Department of Agriculture (USDA).
In Africa’s most populous country, the processing industry provides approximately 90% of the soybean oil consumption, which stands at around 175,000 tons per year, according to the USDA.