How Iorfa Asongo Built a Profitable Palm Oil Business From Rural Nigeria

Building a successful business in Nigeria often begins with spotting opportunities hidden in everyday places. This is the story of Iorfa Asongo, a young trader from Adikpo who transformed a simple palm oil buying and selling hustle into a profitable commodity supply business, connecting the rural market of Bishiri in Obudu Local Government, Cross River State, to the growing demand in Abuja markets.

This article explores his journey, the economics behind his business, and the practical lessons Nigerians can learn from his inspiring rise.

1. What Is Palm Oil?

According to wikipedia, palm oil is a natural vegetable oil extracted from the fruit of the oil palm tree. It is widely used in Nigerian homes for cooking, food processing, cosmetics, and local delicacies.

Its vibrant red color and long shelf life make it one of the most sought-after agricultural products in the country.

Importance of Palm Oil in Nigeria

Palm oil is deeply tied to Nigeria’s cultural and economic life. It is essential for:

• Cooking and preparing soups like ogbono, egusi, and banga
• Food production and frying
• Locally made cosmetics and pomades
• Soapmaking
• Export and local trade

The consistency in demand makes it a viable commodity for traders looking for stable markets.

Where Asongo Sources His Palm Oil

Asongo buys palm oil in Bishiri, a small border community located close to Nyon in Kwande Local Government of Benue State. Bishiri is known for its vibrant rural market where farmers bring freshly processed palm oil from surrounding villages.

The price per litre in the Bishiri market is around ₦1,500, depending on season and supply levels.

Where He Supplies His Palm Oil

Asongo supplies his goods to:

• Retail sellers in Nyanya Market, Abuja
• Wholesalers in Wuse Market, Abuja
• Small restaurant owners and food vendors
• Families who buy directly in bulk to reduce costs

Because palm oil sells for about ₦2,500 per litre in Nyanya and Wuse, he is able to achieve a healthy profit margin.

Transportation Cost Breakdown

Transporting goods from rural markets to Abuja is expensive, especially due to distance and logistics.
For Asongo:

• Route: Bishiri → Abuja
• Cost: About ₦220,000
• Load: 25 gallons
• Each gallon: 25 litres

This means he transports 625 litres per trip.

Profitability Analysis

a. Cost Price per Litre in Bishiri:

₦1,500

b. Selling Price per Litre in Abuja:

₦2,500

c. Transport Cost Distribution:

₦220,000 / 625 litres ≈ ₦352 per litre

d. Total Cost Price Per Litre:

1,500 + 352 = ₦1,852

e. Profit Per Litre:

2,500 – 1,852 = ₦648

f. Profit Per Trip:

648 × 625 = ₦405,000

Even after miscellaneous expenses, he consistently makes meaningful profit on every trip, making the business both sustainable and scalable.

Brief History of Palm Oil Trading in Nigeria

Nigeria was one of the world’s largest producers of palm oil before crude oil discovery. Rural communities like Bishiri continue to sustain traditional processing methods, contributing significantly to local income. This heritage makes palm oil trading a deep-rooted business with long-term stability.

Challenges Asongo Faces in the Palm Oil Trade

Like every business, he faces challenges such as:

• Seasonal price fluctuations
• Transport delays during rainy seasons
• Maintaining product quality during long trips
• Storage issues when supply is high
• Negotiation hurdles with buyers

These are normal business challenges and part of the learning process.

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How Technology Helps His Business Grow

Asongo uses simple digital tools to run an efficient operation:

• WhatsApp to negotiate orders with Abuja buyers
• Mobile banking for fast and secure payments
• Google Sheets or notebooks for tracking expenses and profits

His use of technology makes communication smoother and reduces financial risks associated with cash transactions.

Market Demand for Palm Oil in Abuja

Urban centers like Abuja experience strong demand for palm oil because:

• Many working-class families buy food ingredients in bulk
• Restaurants and food vendors rely on large quantities
• Retailers restock frequently due to fast turnover

This demand creates a profitable supply chain for rural-based traders like Asongo.

Quality Control Measures

To maintain trust, Asongo ensures:

• Clean gallons for storage
• No adulteration with kerosene or dye
• Proper sealing of containers
• Safe, cool storage to retain the red color
• Accurate measurement for every buyer

Delivering consistent quality has earned him long-term customers.

How Asongo Built Trust With His Buyers

Trust is everything in the commodity business. Asongo’s principles include:

• Transparent pricing
• Timely deliveries
• Honesty about supply conditions
• Keeping communication open
• Offering small discounts to loyal buyers

These practices help him grow through referrals.

Tips for Beginners Interested in Commodity Trading

For Nigerians hoping to start this kind of business:

• Start small and expand gradually
• Understand rural market pricing
• Build strong relationships with farmers
• Track every expense
• Avoid adulterated products
• Ensure consistent communication with buyers
• Choose reliable transporters

Risk Management in Palm Oil Trading

Asongo minimizes risks through:

• Proper storage techniques
• Frequent communication with suppliers
• Keeping emergency funds for price fluctuations
• Maintaining multiple buyers
• Scheduling trips during good road conditions

This keeps the business steady even during unstable periods.

Economic Impact on His Community in Adikpo

His business supports:

• Local palm oil processors
• Transporters and loaders
• Market women in Bishiri
• Youths who help with packaging

He indirectly contributes to rural development and economic growth.

Plans for Expansion

Asongo hopes to:

• Rent a larger storage facility
• Brand his palm oil in labeled containers
• Supply supermarkets
• Extend deliveries to Gwarimpa, Kubwa, and Mararaba
• Invest in a small truck to reduce transport costs

Key Lessons From Asongo’s Journey

• Opportunities exist everywhere
• Rural markets hold hidden wealth
• Consistency builds trust
• Starting small is powerful
• Understanding market price gaps is profitable
• Technology enhances small businesses
• Discipline and honesty attract long-term customers

Financial Discipline and Record-Keeping

Asongo keeps a small notebook where he documents every expense:

• purchase price per gallon,

• transport cost,

• loading fees,

• storage costs, and

• selling price per litre in different Abuja markets.
  This financial discipline helps him calculate his exact profit per trip, avoid unnecessary spending, and make better decisions for upcoming business cycles. It also prevents confusion during price fluctuations, enabling him to stay organized and confident.

Seasonality of Palm Oil Supply and Pricing

Palm oil production is seasonal, and this affects how traders like Asongo plan their buying cycles. During peak harvest months, farmers bring more palm fruits to local mills, resulting in lower prices and higher availability.

At this time, Asongo takes advantage of the lower prices to buy larger quantities.
However, during off-season months, supply reduces and the price per litre increases across markets.

By understanding this pattern, he knows when to stock up, when to slow down, and how to maintain consistent supply for his Abuja customers. This knowledge helps him remain competitive in a business where timing is critical.

How Asongo Manages Inventory and Storage

To avoid spoilage or contamination, Asongo invests in clean containers and cool storage spaces. Palm oil is sensitive to heat and moisture, so proper storage ensures that the oil maintains its bright red color and natural taste.

He stores gallons in a dry room raised slightly above floor level to prevent moisture absorption. He also rotates stock based on purchase date, ensuring that older supplies go out first.

These small but important steps help him maintain quality and prevent losses in a business where every litre counts.

The Role of Market Research in His Business Growth

Before expanding his supply to Abuja, Asongo took time to understand:

• who buys palm oil in bulk,

• which markets sell it the fastest,

• what price differences exist between locations, and

• what packaging preferences buyers have.
  This simple market research gave him an advantage because he knew exactly where demand was strongest and how to price his product. It also allowed him to identify Nyanya and Wuse as profitable hubs instead of randomly choosing markets.

Ethical Trading Practices

In the palm oil industry, trust is everything. Asongo has built his reputation by being transparent with his customers, avoiding adulterated products, and always delivering the exact quantity buyers pay for.
His principles include:

• honest measurements,

• clear communication about price changes,

• proper sealing of containers, and

• respectful customer relationships.
  These ethical values have turned many first-time buyers into returning customers.

How Networking Helped Him Grow His Buyer Base

Asongo understands that relationships are a powerful business tool. He greets people warmly, maintains contacts with market women, and consistently checks on buyers after deliveries.
Over time, satisfied customers in Abuja began recommending him to others.

Through simple word-of-mouth, his buyer list expanded, and he now serves restaurants, retailers, and households. Networking has become one of his strongest marketing tools, even without advertising.

Community Empowerment Through Local Sourcing

By purchasing directly from farmers in Bishiri and nearby villages, Asongo helps sustain rural livelihoods. Local producers rely on traders like him to bring their products to urban markets.

Because he buys in large quantities, farmers are assured of quick sales and steady income. Transporters, loaders, and market women also benefit from his regular visits, making the business a small but meaningful contributor to the local economy.

Long-Term Sustainability of Palm Oil Trading

Palm oil remains one of the most stable commodities in Nigeria. Its use in cooking, food processing, and cosmetics ensures consistent demand.

Asongo’s focus on quality, ethical trading, and proper storage positions him for long-term stability. With future plans such as branded packaging and expanding supply routes, he is building a business model that can remain relevant for many years.

Conclusion

The story of Iorfa Asongo from Adikpon demonstrates how vision, discipline, and strategic thinking can turn a small rural trade into a profitable regional business.

By understanding market demand, maintaining high-quality products, and practicing ethical trading, he not only built a sustainable income for himself but also supported his local community.

His journey shows that success does not always require massive capital or urban resources careful planning, financial discipline, and building strong relationships can create wealth even from modest beginnings.

For aspiring traders and small business owners in Nigeria, Asongo’s experience offers practical lessons in entrepreneurship, market research, and long-term business sustainability.

Most importantly, his story reminds us that opportunities are everywhere; it is the willingness to act, adapt, and remain consistent that transforms everyday trades into thriving enterprises.