Grains are agricultural products that have a very high demand in the country. They usually include Simsim, groundnuts, soybeans, maize, popcorn, and cowpeas.
The project idea is based on adding value by packaging good quality grains and selling them at relatively low prices. The project expects to package 72,000 kgs of assorted grains per annum. Initial investment costs are estimated at NGN 45,448,400 generating revenue of NGN 50,013,60 at a net profit margin of 43% and a payback period of approximately 2 years.
Capital Investment Requirements (CBN exchange rate -$1 to 415.22 NGN) as of 27th May 2022.
|Capital investment item||Units||Qty||Cost in
|Cost in USD|
|Total cost of machinery||21,500||51.779|
Production and operating costs
|Pdn cost/ month in NGN||Pdn cost/ year
|Pdn cost/ year
General costs (overheads)
| Cost Per Month
|Cost Per Year
|Cost Per Year
|Utilities(water and power)||2000||24,000||57.801|
|Total Operating Costs|
- Production is assumed for 312 days per year.
- Depreciation assumes 4-year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days.
Project product costs and Price structure
|Item||Qty /day||Qty/yr||@||Pdn cost /yr
|Pdn cost /yr
|Profitability Item||Per day||Per month||Per Year
|Less production and operating Costs||99,000||2,574,000||45,448,400||109,456.192|
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The market for grains readily exists and their demand continues to grow mainly across borders.
The business risk involved is price fluctuation, which may affect the targeted profits. However, this can be minimized by setting up buffer stocks in times of low prices and resell later when they are high.