The business idea is for the production and marketing of mayonnaise cream. Mayonnaise is a thick, creamy sauce or dressing that is

made of oil, egg yolks, lemon juice or vinegar and seasonings. The total potential revenue is estimated at NGN 37,440,000 per year, the

production capacity is estimated at 200 containers per day and the total investment cost is estimated at NGN 1,472, 900. The net profit is 26% while the payback period is 1 month.


Production process

A method of producing mayonnaise comprises directing coagulated egg yolk and milk protein into a container in which they are mixed

together and adding salt and a small amount of oil and colorants.

The mixture is then directed through a dosing pump to a first heater in which the mixture is briefly heated to a temperature in the range

of about 80°C-100°C.

The emulsion is then stirred with vinegar and other additives to form mayonnaise. The mayonnaise is pasteurized by heating it

briefly in a second heater to about 80°C-100°C or it is sterilized by heating it to a higher temperature of 110°C- 130°C.

Thereafter, the pasteurized mayonnaise is cooled in a second cooler and it is continuously filled into sterilized containers.

Capital Investment Requirements (CBN exchange rate -$1 to 415.58 NGN) as of  22nd April 2022.

Capital investment item Units Qty Cost in


Cost in USD
Dynamic mixer  No. 1 4700 11.309
Heater No. 2 8600 20.694
Cooler  No. 2 5000 12.031
Packaging No. 200 34,000 81.813
Total cost of machinery 52,300 125.848




Production and operating costs

Cost Item  Units @





Pdn cost/ month  in NGN Pdn cost/  year


Pdn cost/  year


Oil litres 16,000 10 416,000 4,992,000 12,012.128
Vinegar litres 4,000 5 104,000 1,248,000 3,003.032
Milk proteins kgs 10,000 12 260,000 3,120,000 7,507.579
salt kgs 100 2 2600 31,200 75.076
eggs trays 24,000 20 624,000 7,488,000 18,018.191
Sub-total 1,406,600 16,879,200 40,616.007



General costs (overheads) 

 Cost Per Month


Cost Per Year


Cost Per Year


Utilities(water and power)  2000 24,000 57.751
Labour 5000 60,000 144.377
Rent 2000 24,000 57.751
Distribution costs 5000 60,000 144.377
Sub –total 14000 168,000  404.254
Total Operating Costs 1,420,600 17,047,200 41,020.261


  1. Production costs assumed 312 days per year with a daily capacity of 200 tins of mayonnaise
  2. Depreciation (fixed assets write-off) assumes 4 years life of assets written off at 25% per year.
  3. Direct costs include materials, supplies, and other costs that directly go into the production of the product.




Project product costs and Price structure  

Item  Qty /day Qty/yr @ Pdn cost /yr



Pdn cost /yr






Mayonnaise 200 62,400 600 17,047,200 41,020.261 37,440,000 90,090.957



Profitability Analysis

Profitability Item  Per day Per month Per Year


Per Year


Revenue 120,000 3,120,000 37,440,000 90,090.957
Less production and  operating Costs 54,100 1,420,600 17,047,200 41,020.261
Profit 65,900 1,699,400 20,392,800 49,070.696



Market Analysis

Mayonnaise is commonly served with sandwiches and with salads.

Therefore, the product has a high demand. It is supplied to supermarkets, shops, hotels, and restaurants as major outlets.

Sources of raw materials

Raw materials are locally available in shops and markets.

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