This business idea is for keeping bees for the production of honey and beeswax. The Revenue potential is estimated at NGN 4.4m ($11,736) per year with the project cost of NGN3.2m ($7,345) and a profit margin of 60.4%. The expected payback period is 7 months.

Process Description

Beehives are opened after the bees have been smoked out using a smoke pump, honeycombs are pressed by hand. Honey is separated from the wax using pressing machines to produce better quality honey. Honey from a honeycomb is extracted, warmed, strained, and bottled.



Capital Investment Requirements in (CBN Exchange rate – $1 to NGN 380) as of 31st of March, 2021
Capital Item Qty Cost/unit (NGN) Amount in  (NGN) Amount in (USD)
Centrifuge Machine 1 95000 95,000 232
Wooden beehives 30 30000 900,000 2,368
Smoker pumps 1 12500 12,500 31
Buckets 5 500 2500 6.6
Hive tools 4 1500 6000 14.7
Protective wears 3 17000 51000 134
Filtering sieves 4 14000 56000 137
Land (Plot) 2 200000 400000 1,053
Total 1,523,000 4008

Production and Operating Costs

Item: Direct costs Units Per 1kg


Qty Per Day PDN Cost/ Year (NGN) PDN Cost/ Year (USD)
Bee Wax Kgs 100 1 36500 96
Honey Litres 150 1.5 54750 144
Total 91,250 240


General Costs (Overheads) 

Cost/ Year 1 (NGN) Cost/ Year (USD)
Utilities (Power) 180,000 474
Salaries  720,000 1895
Sub-Total 900,000 2368
Total Operating Costs 1,680,000 4421

Direct costs include materials, supplies, and other costs that directly go into the production of the product.


Project Product Cost and Price Structure

Item Period  Output Unit Price (NGN) Total Revenue (NGN) Total Revenue (USD)
Honey Per Year (Litres) 547.5 4500 2,463,000 6467
Bee Wax Per Year (KG) 365 5500 2,007,000 5269
Total 4,470,000 11736


Profitability Analysis 

Profitability Item Rev Per Year Rev Per Year (USD)
Honey 2,463,000 6467
Bee Wax 2,007,000 5269
Sub-Total 4,470,000 11,736
Less Prod & Operating Cost 1,771,250 4,661
Profit 2,698,750 7102


Market Demand

There is high demand for honey for home consumption, pharmaceutical use in making drugs, and in most instances it has replaced the sugar intake among people with health complications. Some beekeepers salvage the combs to extract wax for making candles or at times it is mixed with maize flour to make ice-cream cones. In addition, wax is demanded by cobblers, makers of household textiles, and garments.



The risk involved in this business is that there is never a “superhive”, which could potentially disrupt the bees if there is an interruption. However, this can be mitigated by making diverse beehives.