How To Start Groundnut Farming in Nigeria: Costs, Profit, Processing, and Full Guide

Groundnut farming in Nigeria is one of the most accessible and lucrative agribusiness opportunities for entrepreneurs who want to tap into the country’s booming agriculture sector. Nigeria is the largest producer of groundnuts in Africa and ranks among the top five producers globally, contributing over 40 per cent of the continent’s output, according to the Food and Agriculture Organisation.

At its core, groundnut farming involves cultivating peanuts for a wide range of uses, including oil production, roasted snacks, peanut butter, and animal feed. It is a crop that thrives in Nigeria’s dry and semi-arid regions, particularly in the north, and requires relatively low capital to start on a small scale. For farmers and investors alike, it offers multiple income streams, from raw sales to value-added processing.

This guide will take you through everything you need to know to succeed in the groundnut business in Nigeria. From choosing the right seeds and preparing your land to harvesting, processing, packaging, and even exploring export opportunities, every step of the journey is covered. Whether you are starting with a small plot or planning a commercial venture, this is your one-stop resource to get it right from seed to market.

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Key Takeaway

1. Groundnut farming in Nigeria is a profitable and scalable agribusiness that offers multiple revenue streams through raw production, processing, and export.
2. Success in groundnut farming depends on choosing the right seed variety, applying proper planting and harvesting techniques, and managing costs with clear financial planning.
3. Value addition through oil production, peanut snacks, and branded products increases profitability and opens doors to supermarkets, health markets, and international buyers.
4. To build a sustainable groundnut business, farmers must invest in quality inputs, market access, post-harvest handling, and take advantage of funding, training, and support services.

See also: How to start a profitable rice farming business

How to Start Groundnut Farming in Nigeria: A Step-by-Step Guide

If you want to build a profitable groundnut farming business in Nigeria, you need more than a good idea and a piece of land. It takes preparation, the right inputs, and a solid understanding of the crop’s lifecycle.

This section walks you through each stage so you can start strong and avoid the costly mistakes that hold many new farmers back.

Step 1: Choose a Suitable Location

The success of your groundnut farm starts with location. Groundnuts require loose, sandy-loam soil with good drainage. Waterlogged or clay-heavy soil will reduce yield and increase disease risk.

Look for land in areas with moderate rainfall and plenty of sunshine. States like Kano, Taraba, Kaduna, and Bauchi offer ideal agro-ecological conditions for groundnut production in Nigeria.

If you are leasing land, make sure there is a clear agreement in place.

Step 2: Prepare the Land Properly

Once you have secured land, the next step is to prepare it for planting. Clear all weeds, shrubs, and debris. Plough the land deeply to loosen the soil and improve aeration.

After ploughing, harrow the field to break up soil clumps and create a fine tilth. If you are farming on a large scale, mechanised tools like tractors and harrows will save time and labour.

Ridges or flat beds can both work, but ridges are better for drainage during the rainy season. Also, test your soil, especially if you are farming commercially. Soil testing helps you decide what fertilisers or amendments may be needed.

Step 3: Select the Right Seed Variety

Not all groundnuts are the same. Choosing the right variety based on your location and market goal is key. Improved varieties like SAMNUT 24, SAMNUT 25, and SAMNUT 26 are disease-resistant and high-yielding. They also have better oil content and shorter maturity periods.

Buy only certified seeds from trusted agro-dealers or the Agricultural Development Programme (ADP) offices in your state. Avoid open-market seeds, which may be mixed, expired, or disease-prone.

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Step 4: Plant at the Right Time

The best time to plant groundnuts in Nigeria is at the beginning of the rainy season — usually between May and June in most northern states. For dry-season farming using irrigation, planting can begin around November or December.

Planting depth should be about 5 to 6 centimetres, and spacing should be 30 centimetres between rows and 10 to 15 centimetres between plants. Overcrowding will reduce airflow and increase disease risk.

Step 5: Apply Fertiliser and Manage Soil Health

While groundnuts fix nitrogen naturally, they still need fertilisers for better pod development. Apply Single Super Phosphate (SSP) or NPK 15-15-15 fertiliser at a rate of 100 to 150 kilograms per hectare, preferably before flowering.

Also, consider applying organic matter like compost or poultry manure during land preparation. This boosts soil structure and microbial activity, which helps pod development and yield.

Step 6: Weed Control and Crop Management

Groundnuts are sensitive to weed competition, especially during the first six weeks after planting. You can control weeds manually using hoes or with pre-emergent herbicides applied shortly after planting. Always follow safety guidelines when using chemicals.

To prevent pests and diseases, regularly monitor your field. Use appropriate treatments if you see signs of rosette virus, aphids, or leaf spot. You can find a breakdown of pest management strategies in our upcoming section on Groundnut Pest and Disease Control.

Step 7: Irrigation (If Farming Off-Season)

If you are planting groundnuts during the dry season or in areas with unpredictable rainfall, a simple irrigation system will help you avoid yield loss. Even basic methods like hose irrigation or furrow channels can support groundnut growth.

For commercial farms, consider installing drip or sprinkler systems to ensure consistent moisture during flowering and pod filling stages.

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Step 8: Harvest at the Right Time

Groundnuts are ready for harvest when the leaves start to yellow and shed, and the pods have hardened. This is typically 90 to 120 days after planting, depending on the variety. Use hoes or groundnut lifters to carefully uproot the plants and avoid breaking the pods.

Leave the plants in the field for 2 to 3 days to dry slightly, then remove the pods by hand or using a groundnut thresher. Proper drying is crucial to prevent mould and aflatoxin, especially if you are targeting premium buyers or export markets.

Step 9: Post-Harvest Handling

After harvesting, dry the groundnuts under the sun until the moisture content is around 8 to 10 per cent. Shelling can be done manually or using a sheller. Sort and grade the pods by size and quality to meet market expectations.

Store groundnuts in clean, dry jute bags or aerated containers. Keep them off the ground and away from moisture to avoid spoilage. We will cover this more under Groundnut Storage and Warehouse Practices later in the article.

Step 10: Develop Your Business Model and Market Plan

Starting a groundnut farm is only the beginning. To build a sustainable agribusiness, you need a plan that covers branding, processing, market access, and financial growth. Whether you want to supply processors, launch your own snack brand, or export, planning ahead will help you avoid surprises.

Our Entrepreneurs Success Blueprint Program offers hands-on training, business structuring, and strategic planning to help you move from farmer to agropreneur. You can also subscribe to our Entrepreneurs.ng Newsletter to receive weekly insights and real-time business updates.

See also: How to start a profitable sugarcane business

Groundnut Farming in Nigeria: Industry Overview

Groundnut farming in Nigeria has been a cornerstone of the country’s agricultural sector for decades. Once symbolised by the iconic groundnut pyramids in Kano, the crop has remained a vital source of food, oil, income, and employment.

With over 3 million hectares cultivated annually and more than 2.6 million metric tonnes produced each year, Nigeria continues to lead Africa in groundnut production. According to the National Bureau of Statistics, agriculture employs over 35 per cent of the nation’s workforce, and groundnut farming contributes significantly to this figure, particularly in the northern states.

This agribusiness opportunity is particularly attractive because of its flexibility. Groundnuts grow well in Nigeria’s savannah regions, with states like Kano, Kaduna, Bauchi, Taraba, and Benue leading the way in output.

These regions offer ideal agro-ecological conditions, including sandy-loamy soil and rainfall between 500 to 1,000 millimetres. Smallholder farmers dominate the industry, but more entrepreneurs are now turning to mechanised and commercial-scale farming thanks to improved seed varieties and growing market demand.

The rise in local consumption and export potential has expanded the groundnut value chain beyond farming. Today, groundnut oil is a staple in homes and restaurants, while roasted peanuts, peanut butter, and flour-based products are gaining traction in both local markets and retail shelves.

Entrepreneurs who get it right can tap into multiple revenue streams. That is where having a solid business foundation matters. If you are serious about building a scalable and registered agribusiness, check out our Business Registration Services and explore the Entrepreneurs Success Blueprint Program. These tools are tailored to help aspiring agro-entrepreneurs like you start right, scale fast, and build a brand that lasts.

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Benefits of Groundnut Farming

Below are the reasons why you should start groundnut farming in Nigeria.

Groundnut Farming in Nigeria is Highly Profitable

Groundnut farming has one of the best returns on investment in smallholder and commercial agriculture. With improved seed varieties and proper farm management, farmers can earn over 100 per cent profit per cycle.

This is due to its short growing period, low input requirements, and multiple uses across industries. Whether selling raw groundnuts, oil, or peanut-based snacks, entrepreneurs can access diverse revenue streams with minimal overhead.

The Crop Matures Quickly and Allows Multiple Harvests

Groundnuts have a relatively short growth cycle, ranging from 90 to 120 days depending on the variety and climate. This means you can plant and harvest at least twice a year in most parts of Nigeria, especially in the north. Multiple harvests increase your income potential and reduce the risk of total loss in a single season.

Groundnuts are in High Demand Across Nigeria

Nigerians consume groundnuts daily- as roasted snacks, boiled street food, groundnut soup ingredients, or cooking oil.

The rise in health-conscious consumers is also boosting demand for peanut butter, groundnut flour, and other protein-rich plant-based products. As a farmer or processor, this steady and growing demand provides long-term market stability.

It Supports Nigeria’s Food Security and Nutrition Goals

Groundnuts are nutrient-dense, providing proteins, fibre, magnesium, folate, and healthy fats. They are essential in school feeding programs and combatting malnutrition.

Starting a groundnut farming business contributes to local nutrition while also creating livelihood opportunities in your community.

Groundnut Farming Improves Soil Fertility

As a legume, groundnuts have the unique ability to fix nitrogen into the soil through their root systems. This natural process enhances soil fertility, reduces the need for synthetic fertilisers, and improves the productivity of subsequent crops like maize or millet. Farmers can use this advantage in crop rotation to manage soil health sustainably.

It Can Be Grown in Diverse Agro-Climatic Conditions

Groundnuts thrive in Nigeria’s savannah zones, particularly in areas with well-drained sandy-loam soils and moderate rainfall. From Kano to Taraba, the crop adapts to different climates, making it a viable business option in many parts of the country. With access to irrigation, it can also be farmed in dry-season cycles.

The Groundnut Value Chain Offers Multiple Business Opportunities

Groundnut farming is just the beginning. Entrepreneurs can tap into processing, packaging, branding, export, and even livestock feed by-products like groundnut cake and haulms.

If you are considering launching a groundnut product line, you can take advantage of our Entrepreneurs Success Blueprint Program to learn how to scale, market, and grow a sustainable business.

It is Suitable for Smallholder Farmers and Scalable for Commercial Ventures

You do not need to start big. With as little as half a hectare, you can begin a groundnut farm and expand gradually. At the same time, groundnut farming is scalable with mechanisation and modern processing tools. This flexibility makes it ideal for aspiring entrepreneurs, women-led ventures, youth groups, and cooperatives.

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Types of Groundnuts Used for Farming

Choosing the right type of groundnut is one of the most important decisions you will make when starting your groundnut farming business in Nigeria.

Different varieties have different characteristics, including yield potential, resistance to pests, oil content, and suitability for certain regions. Knowing what works best for your soil, climate, and business goals can be the difference between success and struggle.

Valencia Groundnut

Valencia groundnuts are early-maturing and drought-tolerant, which makes them a good option for northern parts of Nigeria where rainfall is limited.

They are sweet, have a bright red skin, and are commonly used for boiling. Farmers favour Valencia because of its quick turnaround and ability to produce under less-than-ideal rainfall conditions.

Spanish Groundnut

Spanish types are smaller in size but rich in oil content, making them a favourite for groundnut oil production. These are typically bushy plants with small pods, suitable for regions with shorter growing seasons.

They are also used in confectionery and roasted snack production, making them ideal for farmers targeting processing markets.

Virginia Groundnut

Virginia groundnuts produce large pods with two to three seeds inside. They are often considered a premium variety due to their size and appearance.

This type is popular in urban retail markets and is commonly used for roasted and packaged snacks. They require more space to grow but offer higher market value.

Runner Groundnut

Runner varieties are known for their consistent pod size and uniformity, which makes them ideal for peanut butter production.

They have a longer maturity period compared to Valencia or Spanish, but deliver good yields under the right conditions. These are suitable for farmers looking to supply to processors or enter the packaged food market.

Improved Varieties from IAR (SAMNUT)

In Nigeria, the Institute for Agricultural Research (IAR) has developed several high-performing and disease-resistant groundnut varieties. The most popular ones include:

• SAMNUT 24: Early maturing, resistant to rosette virus, suitable for rain-fed farming
• SAMNUT 25: High pod and kernel yield, excellent shelling percentage
• SAMNUT 26: Good for oil extraction, widely adopted in the north

If you are just starting out, sourcing certified seeds from reliable suppliers is critical. Avoid buying from open markets without traceability.

Types of Groundnut Farming Businesses in Nigeria

Groundnut farming in Nigeria is not a one-size-fits-all venture. Depending on your goals, location, available capital, and market strategy, there are several business models you can explore. Each type offers unique opportunities and challenges, and knowing where you fit can help you focus your resources and grow faster.

Smallholder Groundnut Farming

This is the most common form of groundnut farming across Nigeria. Smallholder farmers typically cultivate between one to five hectares, using mostly manual tools and family labour. It is a good starting point for individuals who want to enter the industry with low capital and gradually reinvest profits to scale.

Commercial Groundnut Farming

This model involves large-scale operations, often with mechanised tools, irrigation systems, and formal farm management practices. Commercial farms supply processors, industrial buyers, and export markets. If you are considering this route, our Entrepreneurs Success Blueprint Program can help you structure your operations, access financing, and develop long-term strategies for growth.

Organic Groundnut Farming

With the rise in demand for chemical-free and organic foods, some entrepreneurs are turning to organic groundnut cultivation. This involves using natural fertilisers, biological pest control, and eco-friendly practices.

Although it requires more effort to maintain certification standards, it opens doors to premium markets both locally and internationally.

Groundnut Seed Multiplication

Certified seed production is a niche but important segment of the groundnut value chain. This model focuses on producing and distributing quality seeds like SAMNUT 24, 25, or 26 to other farmers.

It requires a high level of expertise and certification, but the margins are often higher than grain production.

Processing-Based Groundnut Businesses

Instead of focusing on cultivation, you can choose to process groundnuts into value-added products. These include groundnut oil, peanut butter, roasted peanuts, flour, or even livestock feed using the by-products.

If you want to launch a branded groundnut product, our Brand Identity Asset Services can help you develop packaging, design, and a cohesive brand that stands out in the market.

Contract Farming and Out-Grower Schemes

In this model, processors or agri-investors partner with a network of smallholder farmers. The lead partner provides inputs, training, and off-take guarantees while farmers focus on production. This is an ideal model for entrepreneurs who want to scale quickly by leveraging networks and partnerships.

Groundnut Trading and Aggregation

If you are not ready to farm or process, trading groundnuts can be a profitable option. Aggregators buy from multiple smallholder farmers, store the crops, and sell in bulk to processors or exporters. This requires logistics, warehousing, and market connections, but has less production risk.

Each of these models can be built into a sustainable business. The key is to start with a plan. You can download our ready-to-use Business Plan Template from the Entrepreneurs.ng Shop Page.

Best Climate and Soil Conditions for Groundnut Production in Nigeria

Understanding the right agro-ecological conditions is essential for successful groundnut farming in Nigeria. While the crop is adaptable, your yield and profitability depend heavily on soil type, rainfall patterns, and temperature. The better you match your location with the crop’s needs, the more efficiently your farm will perform.

Ideal Soil Type for Groundnut Farming

Groundnuts do best in loose, well-drained, sandy-loam soils that are rich in organic matter. Heavy clay soils hold too much water and can cause the pods to rot underground. Aim for soil with a neutral pH between 6.0 and 7.0.

If you are not sure of your soil profile, consider doing a basic test before planting. The results will help you determine whether you need to improve drainage, add organic compost, or lime the soil to balance acidity.

Best Rainfall and Temperature Range

Groundnut is a warm-season crop and requires moderate rainfall of about 500 to 1000 millimetres during its growth cycle. Too much rain, especially close to harvest, can increase the risk of mould and aflatoxin.

In terms of temperature, the crop thrives in conditions between 27 and 30 degrees Celsius. This makes it highly suitable for the northern and middle belt regions of Nigeria where dry spells and sunshine are consistent.

Agro-Ecological Zones That Favour Groundnut Production

The major agro-ecological zones for groundnut farming in Nigeria are the Sahel, Sudan, and Guinea savannahs. These regions offer a balance of good sunlight, well-drained soils, and manageable rainfall. States like Kano, Katsina, Jigawa, Bauchi, Kaduna, Taraba, and parts of Niger and Benue are top producers for this reason.

If you plan to grow groundnuts outside these zones, irrigation and soil amendments may be necessary. Dry-season farming with irrigation systems is becoming popular in some areas and can allow you to tap into off-season markets with higher prices.

When choosing a location for your farm, consider not just the land but also access to nearby markets, roads, and storage facilities. If you are leasing land or forming a cooperative, you can get help with contracts and structure through our Employer-Employee Protection Bundle.

Cost of Groundnut Farming in Nigeria

Groundnut farming in Nigeria remains a viable venture, but the cost of inputs has risen sharply in recent years due to economic factors. If you are planning to start with one hectare, here is a breakdown that reflects the estimated cost of production in key producing regions like Kaduna, Kano, Taraba, and Bauchi.

1. Land Preparation

• Land clearing (manual or tractor): ₦50,000 to ₦70,000
• Ploughing (tractor hire): ₦45,000 to ₦60,000
• Harrowing and ridging: ₦30,000 to ₦50,000
  Subtotal: ₦125,000 to ₦180,000

If you are leasing land, add an additional ₦40,000 to ₦80,000 per hectare, depending on location and demand.

2. Certified Seeds (SAMNUT 24, 25, or 26)

• Quantity needed: 40 kg
• Price per kg: ₦1,800 to ₦2,200
  Subtotal: ₦72,000 to ₦88,000

Only use certified seeds from verified agro-dealers or state agricultural development programmes for maximum yield and disease resistance.

3. Fertiliser and Organic Inputs

• NPK or SSP fertiliser (2 bags minimum): ₦55,000 to ₦70,000
• Organic compost or manure: ₦15,000 to ₦25,000
• Labour for application: ₦10,000
  Subtotal: ₦80,000 to ₦105,000

Fertiliser prices have skyrocketed. Many farmers now use a combination of synthetic and organic inputs to manage costs.

4. Agrochemicals (Herbicides, Fungicides, Insecticides)

• Pre-emergent herbicide: ₦8,000 to ₦10,000
• Post-emergent herbicide: ₦7,000 to ₦9,000
• Pesticides and disease control: ₦10,000 to ₦15,000
• Labour for spraying: ₦6,000 to ₦8,000
  Subtotal: ₦31,000 to ₦42,000

Pest and disease pressure is higher during the rainy season. Prevention is cheaper than treatment.

5. Labour

• Planting (4 to 5 persons): ₦25,000 to ₦35,000
• Weeding (2 rounds): ₦35,000 to ₦45,000
• Harvesting: ₦40,000 to ₦55,000
  Subtotal: ₦100,000 to ₦135,000

Labour costs have increased significantly. Mechanisation can reduce long-term costs but requires upfront investment.

6. Post-Harvest Handling

• Tarpaulin for drying: ₦12,000 to ₦18,000
• Shelling (manual or sheller hire): ₦15,000 to ₦25,000
• Storage bags (20 pieces): ₦12,000 to ₦15,000
  Subtotal: ₦39,000 to ₦58,000

Proper drying and shelling prevent post-harvest losses. Use breathable bags and avoid storing on bare ground.

7. Transport and Logistics

• Transport to market or warehouse: ₦15,000 to ₦30,000
• Market levies, loading/unloading: ₦5,000 to ₦7,000
  Subtotal: ₦20,000 to ₦37,000

Location determines logistics cost. Transport is usually the final cost before sale.

Total Cost Per Hectare:

₦467,000 to ₦645,000

This estimate does not include the cost of irrigation (if used), permanent storage infrastructure, or equipment purchases like tractors or shellers. The figure may be slightly lower in rural regions with cheaper labour or higher if you are investing in irrigation or machinery.

If you are planning to scale your operations or secure investor funding, a clear cost analysis backed by numbers is your strongest asset.

How Profitable is Groundnut Farming in Nigeria?

Groundnut farming in Nigeria remains one of the most promising agribusiness ventures in terms of profitability. With the right seed variety, land management, and access to markets, it is possible to earn well above your input costs within a single growing season.

However, just like any business, profitability depends on several factors, including yield per hectare, market price, post-harvest losses, and whether or not you add value through processing.

Let us break down how the numbers work using the cost estimates from the previous section.

1. Yield Potential Per Hectare

On average, a hectare of groundnut farmland planted with improved seeds like SAMNUT 24 or 25 will yield:

• Raw pods: 1,500 kg to 2,500 kg per hectare
• Shelled groundnut (kernels): 900 kg to 1,500 kg per hectare after shelling

These figures assume good agronomic practices, proper fertilisation, and effective pest control.

2. Market Prices

Market prices vary depending on the location and time of year, but the average retail and bulk selling prices are:

• Raw unshelled pods: ₦800 to ₦1,000 per kg
• Shelled groundnut (kernels): ₦1,400 to ₦1,800 per kg
• Groundnut oil (if processed): ₦4,000 to ₦5,500 per litre
• Groundnut cake (by-product): ₦200 to ₦300 per kg

If you choose to sell in bulk to aggregators, prices may be lower, but volume sales compensate.

3. Revenue Estimates Per Hectare

Based on the above:

• Selling 1,200 kg of shelled groundnut at ₦1,500 per kg = ₦1,800,000
• Selling as raw pods (2,000 kg at ₦900 per kg) = ₦1,800,000

This matches or exceeds expected earnings from many other staple crops, especially considering the shorter maturity period.

4. Profit Margin (After Costs)

Using our total production cost per hectare of ₦467,000 to ₦645,000, and average revenue of ₦1,600,000 to ₦1,800,000, your net profit per hectare could be:

₦955,000 to ₦1,333,000 per cycle

This assumes efficient post-harvest handling and no major pest or disease outbreaks. If you farm twice a year, your yearly profit could exceed ₦2 million per hectare with consistent output and good market access.

5. Value Addition and Scaling Up

Processing groundnut into oil, butter, or snacks increases profit margins significantly. For instance, 100 kg of groundnut can yield 35 to 45 litres of oil, which currently sells for ₦4,500 or more per litre. When you include sales from oil cake and husks as animal feed, your returns increase even further.

To explore value addition, branding, and packaging, our Brand Asset Services and Entrepreneurs Success Blueprint Program will help you launch and scale a groundnut-based product the right way. Whether you are producing oil, snack packs, or peanut butter, how you position your brand affects both pricing and shelf life.

6. Key Factors That Influence Profitability

• Seed quality and variety
• Level of mechanisation
• Pest and disease control
• Harvest timing and post-harvest practices
• Market access and negotiation power
• Processing vs raw sales

If you want to test different pricing scenarios or estimate what it will take to break even, download the editable Business Plan Template from the Entrepreneurs.ng Shop Page.

Equipment and Tools Used in Groundnut Farming in Nigeria

To succeed in groundnut farming in Nigeria, having the right equipment can make a big difference, especially when it comes to saving time, reducing manual labour, and improving post-harvest quality.

Whether you are running a small farm or scaling up to commercial production, choosing the right tools for each stage of the farming process is crucial.

Here is a breakdown of the key equipment and tools needed for groundnut farming, categorised by stages in the farming cycle.

1. Land Preparation Equipment

• Cutlass and hoes: Used in manual clearing and small-scale operations.
• Tractor with plough and harrow attachments: Speeds up land preparation for large plots. Tractor hire now costs around ₦45,000 to ₦60,000 per hectare.
• Ridger: Helps with bed formation and soil aeration for planting. Useful in rainy areas to improve drainage.

2. Planting Tools

• Hand jab planters: Used by smallholders for consistent seed placement.
• Seed drill or groundnut planter (tractor-mounted): Reduces planting time on large farms and ensures correct spacing and depth.

If you are planting manually, ensure spacing of 30 cm between rows and 10–15 cm between plants.

3. Weeding and Pest Control Equipment

• Hand hoes: Still common on small farms for early weeding.
• Knapsack sprayer: Essential for applying herbicides and pesticides. One costs between ₦18,000 and ₦25,000.
• Power sprayers (motorised): Ideal for larger farms to cover more land efficiently.

Weeding early and regularly is key to reducing competition and avoiding yield loss.

4. Harvesting Equipment

• Groundnut lifter or digger: Used to loosen soil before harvesting pods.
• Manual uprooting tools (hoe or fork): Common for smaller farms.
• Groundnut harvester (mechanised): For medium to large farms, reduces labour cost and speeds up harvest. Prices vary from ₦450,000 to over ₦1 million depending on size and brand.

Proper lifting avoids damaging pods and reduces post-harvest losses.

5. Post-Harvest Processing Tools

• Drying tarpaulin: Vital to prevent aflatoxin contamination. Large sheets cost ₦12,000 to ₦18,000.
• Groundnut sheller (manual or electric): Speeds up shelling and reduces seed breakage. Manual shellers go for ₦60,000 to ₦100,000; electric models cost between ₦180,000 and ₦300,000.
• Sieves and sorters: For separating dirt, broken kernels, and immature seeds.

Shelling and drying properly help maintain quality for better market pricing or export readiness.

6. Storage and Packaging Tools

• Jute bags or polypropylene sacks: Breathable and prevent moisture build-up.
• Pallets and raised platforms: Keep bags off the ground to avoid rot and pest infestation.
• Bag stitchers or sealing machines: For those packaging groundnuts for sale or export.

Packaging well adds to your product’s shelf appeal and shelf life. If you plan to brand your groundnuts for retail or export, our Brand Asset Service will help you with label design, identity development, and shelf-ready packaging solutions.

Whether you are starting small or expanding, make a list of what tools you already have and where you need to invest. Buying or hiring equipment in bulk as a group or cooperative can also reduce cost. If you are unsure what to prioritise, our team at Entrepreneurs.ng can guide you through it in the Entrepreneurs Success Blueprint Program.

Groundnut Planting and Harvesting Techniques

Planting and harvesting are the two most sensitive operations in groundnut farming in Nigeria. Doing them correctly can significantly improve your yield, reduce losses, and ensure your produce meets market or export standards.

This section breaks down how to plant for optimal growth and how to harvest without damaging your groundnuts.

When to Plant Groundnuts in Nigeria

The best time to plant groundnuts is at the beginning of the rainy season. In northern Nigeria, planting usually starts in late May to early June, while in southern parts, it can begin in April. If you are farming during the dry season using irrigation, planting can be done as early as November or December.

Timing is key. Late planting can reduce your yield and increase exposure to pests and diseases. Plan your planting schedule around weather forecasts and regional rainfall patterns.

Land Preparation for Planting

Before planting, your land should be well-ploughed and harrowed to create a loose, crumbly seedbed. This helps root penetration and pod development. You can plant on flat land, but ridges are preferred in areas with heavy rainfall because they reduce waterlogging and improve drainage.

Remove all weeds, stumps, and debris to reduce early competition and pest habitat.

Seed Preparation

Use only certified seeds such as SAMNUT 24, 25, or 26. These have been bred for high yield, resistance to rosette virus, and better oil content.

Before planting, treat your seeds with a fungicide and inoculant to prevent soil-borne diseases and enhance nitrogen fixation.

Seed rate:

• 35 to 40 kilograms of shelled seeds per hectare
• Space seeds 30 cm apart between rows and 10 to 15 cm within rows

Use a rope or row marker to ensure even spacing, especially if you are planting manually.

Planting Techniques

You can plant groundnuts by hand, with a jab planter, or a seed drill for mechanised operations. Plant seeds at a depth of 5 to 6 cm. Planting too deep or too shallow can lead to poor germination or weak seedlings.

If planting manually:

• Drop one to two seeds per hole.
• Cover lightly with soil using your hand or a hoe.

Irrigate lightly if the soil is too dry, especially in dry-season farming.

Weed Control

Weeds compete for nutrients and reduce yield. Weed at least twice during the early growth phase, once at 2 to 3 weeks after planting, and again at 5 to 6 weeks. You can use a hoe for manual weeding or apply selective herbicides approved for legumes.

Do not weed late, as it can damage the shallow roots and developing pods.

Harvesting Groundnuts

Groundnuts are ready for harvest when:

• The leaves begin to yellow and drop
• The pods feel hard and snap easily when pressed
• The veins inside the pods turn dark brown

This usually occurs 90 to 120 days after planting, depending on the variety.

Use a hoe or a groundnut lifter to loosen the soil before pulling out the plants. Be gentle to avoid breaking off pods underground. Leave the uprooted plants on the field to dry for 2 to 3 days, then collect the pods.

Post-Harvest Handling

Once harvested:

• Dry the pods on a clean tarpaulin or raised platform until the moisture content is around 8 to 10 per cent
• Shell using a manual or mechanical sheller
• Sort the kernels to remove debris, immature, or damaged seeds
• Store in breathable bags placed on wooden pallets to avoid mould and pest attacks

Proper harvesting and drying improve product quality, which is important for selling at premium prices or targeting export markets.

Groundnut Processing and Packaging in Nigeria

Processing and packaging are where most of the money is made in the groundnut value chain. While selling raw groundnuts can generate income, turning them into value-added products such as oil, peanut butter, roasted snacks, or flour opens the door to higher profit margins, product branding, and even export opportunities.

Whether you are starting small or building a food brand, understanding the steps, tools, and hygiene requirements will help you get it right.

Common Groundnut Products in Nigeria

Groundnut Oil

Groundnut oil is one of the most popular edible oils in Nigeria. It is used for cooking, frying, and food manufacturing. The by-product from oil extraction, known as groundnut cake, is also sold as animal feed.

Roasted Groundnuts

Roasted peanuts are sold across Nigeria as snacks. You can roast plain or with spices, then package in sachets, bottles, or branded containers. This is ideal for small-scale food businesses.

Peanut Butter

Creamy or chunky, peanut butter is becoming more popular among health-conscious consumers. It is relatively easy to make with basic grinding equipment and has a good shelf life when packaged well.

Groundnut Flour and Paste

These are used in soups and sauces, especially in the north. Flour is made by roasting, de-skinning, and grinding the nuts. It can be packaged and sold to retailers or restaurants.

Groundnut Milk

A niche but growing product, especially among lactose-intolerant consumers or those seeking plant-based milk alternatives.

Steps in Groundnut Processing

Cleaning

Remove stones, dirt, and broken nuts using a sieve or air blower. Quality starts here.

Roasting

Roast using a pan, drum roaster, or oven. This improves taste, removes moisture, and extends shelf life. If making peanut butter or flour, roasting is essential.

De-skinning

After roasting, remove the outer skin either by hand or with a de-skinning machine. De-skinned peanuts have better taste and market appeal.

Grinding or Pressing

For oil: Use a screw press or hydraulic oil extractor

For butter: Use a peanut butter grinder

For flour: Use a dry mill or high-speed grinder

Cooling and Packaging

Let products cool before packaging to avoid moisture build-up. Use food-grade containers, pouches, or jars. Invest in a simple sealing machine for sachets or bottles.

Packaging Options and Branding Tips

• Use transparent sachets or resealable pouches for roasted nuts
• Peanut butter and oil should be packaged in sealed plastic or glass jars
• Add labels with your brand name, ingredients, expiration date, and NAFDAC number if registered
• Choose attractive colours and fonts to appeal to your market segment

Good packaging builds trust. If you want a consistent look across your products, our Brand Asset Services can help you design a unique visual identity, logo, and label suite tailored to the agro-food industry.

Compliance and Hygiene Standards

• Use gloves and aprons during production
• Keep your production space clean and dry
• Follow food safety practices to avoid contamination
• For oil or butter, filter before bottling
• Register your product with NAFDAC if you plan to sell in supermarkets or export

You do not need a big factory to get started. Many successful snack and peanut butter brands began from home kitchens or small workshops with basic equipment.

Groundnut Storage and Warehouse Practices

After harvesting and processing your groundnuts, the next big priority is proper storage. Poor storage not only reduces the market value of your groundnuts but can also lead to total losses through spoilage or pest damage.

Even worse, groundnuts that develop mould or aflatoxins become dangerous for human consumption and may be rejected by processors or export markets.

Whether you are storing unshelled pods or processed kernels, your post-harvest system should prioritise hygiene, aeration, and moisture control.

Why Proper Storage Matters in Groundnut Farming

Protects your investment: Reduces losses and maintains quality for better market prices

Prevents contamination: Lowers the risk of mould and aflatoxins, which are dangerous toxins caused by fungi

Improves shelf life: Properly stored groundnuts can last up to six months or more without spoiling

Supports compliance: Especially important if you plan to sell to bulk buyers, retailers, or export

Groundnut Storage Best Practices

Dry to Safe Moisture Content

Before storing, ensure your groundnuts are dried to around 8 to 10 per cent moisture content. Wet or improperly dried groundnuts are prone to fungal growth.

Use Clean, Aerated Bags

Store in jute bags or woven polypropylene sacks. These bags are breathable and help regulate moisture. Avoid nylon bags, as they trap moisture and promote rot.

Stack on Raised Platforms or Pallets

Never store bags directly on the floor. Use wooden pallets or plastic platforms to improve airflow and prevent ground moisture from seeping in.

Avoid Humid and Hot Rooms

Store in a cool, dry, and well-ventilated warehouse. High humidity increases spoilage and attracts insects.

Fumigate the Storage Area

Use approved insecticides or fumigation tablets to control pests like weevils or beetles. Do this before and during storage as needed, following safety guidelines.

Inspect Regularly

Check bags every two to three weeks for signs of pests, holes, or condensation. Rotate bags occasionally to ensure even air circulation.

Use Airtight Containers for Retail Packs

If you are packaging for supermarkets or retail, store smaller quantities in airtight containers or sealed jars. These prevent the re-entry of moisture and extend shelf life.

Equipment and Tools for Better Groundnut Storage

• Moisture meter: To test dryness before storage
• Jute or polypropylene sacks: 50 to 100 kg sizes
• Wooden pallets: For raising bags off the floor
• Tarpaulin: To dry properly before storage
• Dehumidifier or ventilation fans (for large warehouses)

Investing in good storage is as important as fertiliser or seed quality. It protects everything you have worked for during the growing season. If you are setting up a processing or storage unit and need help formalising contracts, staffing, or logistics, the Employer-Employee Protection Bundle can help you handle structure and risk management the right way.

Groundnut Export Requirements and Compliance in Nigeria

Exporting groundnuts is one of the most profitable opportunities in the value chain. Countries like India, Vietnam, Indonesia, China, and several European nations continue to import thousands of tonnes of groundnuts from Africa, and Nigeria is well-positioned to supply these markets. However, entering the export space is not as simple as bagging and shipping.

Due to past issues with aflatoxin contamination and poor quality control, groundnut exporters from Nigeria must now meet strict international standards. Understanding these requirements is the first step to building a trusted export business.

Why Exporting Groundnuts Is Worth It

• Higher prices than the domestic market
• Foreign exchange earnings
• Long-term contracts and scalability
• Brand visibility and trust building
• Entry into premium health-conscious food markets

But with high reward comes higher standards.

Key Export Requirements for Groundnut Products

Register with NEPC

You must register your agribusiness with the Nigerian Export Promotion Council (NEPC). This gives you an exporter’s certificate, which is required to engage in international trade.

Get Your Business Registered Properly

You need a registered business name or company to export. If you are just starting, use the Business Registration Services at Entrepreneurs.ng to get structured for trade and finance access. Reach us on WhatsApp- 08038874148.

Meet Aflatoxin Compliance Standards

Aflatoxins are toxic compounds produced by fungi in improperly dried or stored groundnuts. They are a major reason why Nigerian groundnuts have been rejected in the past. To comply:

• Dry groundnuts to 8–10 per cent moisture
• Store in clean, ventilated, raised warehouses
• Test for aflatoxins before shipping — labs like NAFDAC or SON provide testing services
• Use hygienic processing and packaging methods

Adhere to Phytosanitary Guidelines

Phytosanitary certificates prove that your groundnuts are pest-free and safe for consumption. You can obtain this from the Nigerian Agricultural Quarantine Service (NAQS) after inspection.

Product Testing and Certification

International buyers may require:

• Certificate of Analysis (COA)
• Heavy metals and microbial content tests
• Oil content and moisture analysis
• Packaging label review

These tests can be conducted through NAFDAC-certified labs or private testing centres.

Proper Packaging and Labelling

Your packaging should meet international food safety standards. For raw groundnuts, use double-lined bags or vacuum-sealed pouches. For peanut butter or roasted peanuts, use sealed, tamper-proof jars or pouches with:

• Ingredients
• Nutritional information
• Expiry date
• Storage instructions
• Country of origin (Made in Nigeria)

Shipping, Documentation, and Logistics

Work with a freight forwarder or export agent to:

• Handle customs clearance
• Secure shipping containers
• Prepare documents like Proforma Invoice, Bill of Lading, and Commercial Invoice
• Ensure your goods are insured and properly documented

You may also need to factor in warehouse-to-port transport, depending on your buyer’s Incoterms (e.g. FOB, CIF, EXW).

See also: How to start a successful exportation business in Nigeria

Health Benefits of Groundnuts

Groundnuts are more than just a tasty snack, they are a nutritional powerhouse packed with health-boosting properties. In Nigeria and across the world, groundnuts are gaining more attention for their role in supporting heart health, boosting energy, and reducing the risk of chronic diseases.

For agro-entrepreneurs, understanding these benefits gives you an edge when marketing peanut-based products. Whether you are selling roasted snacks, groundnut oil, peanut butter, or flour, highlighting the health value can attract customers and open the door to niche wellness markets.

Groundnuts are Rich in Protein

Groundnuts are an excellent source of plant-based protein, making them ideal for vegetarians, athletes, and people looking to build or maintain muscle. One hundred grams of groundnuts contain around 25 grams of protein, which helps support tissue repair, hormone production, and immune function.

They Support Heart Health

Groundnuts are naturally rich in monounsaturated fats, the same type found in olive oil. These fats help reduce bad cholesterol (LDL) and increase good cholesterol (HDL), lowering the risk of heart disease. Regular consumption of groundnuts has been linked to improved cardiovascular health.

This makes groundnut oil and roasted peanuts attractive to consumers seeking heart-healthy diets.

Groundnuts Provide Lasting Energy

With a balanced mix of fats, protein, and carbohydrates, groundnuts offer sustained energy. They are a great addition to breakfast cereals, snacks for schoolchildren, or energy bars for busy professionals and athletes.

The slow digestion rate of groundnuts keeps blood sugar stable, preventing energy crashes.

Rich in Antioxidants and Vitamins

Groundnuts are high in vitamin E, resveratrol, and other antioxidants that help fight oxidative stress in the body. These compounds support healthy skin, fight inflammation, and reduce the risk of certain cancers.

They also contain:

• Magnesium: Supports nerve and muscle function
• Folate: Vital for pregnant women and fetal development
• Niacin: Important for brain function and mental clarity

Helps in Weight Management

Although groundnuts are calorie-dense, studies have shown that they can support weight control when eaten in moderation. The combination of protein and healthy fats promotes satiety, helping people eat less overall. This makes them suitable for individuals managing weight or avoiding frequent snacking.

Beneficial for Diabetics

Groundnuts have a low glycaemic index, meaning they do not cause sharp spikes in blood sugar. This makes them a safe snack option for diabetics and others managing insulin sensitivity.

Supports Child Nutrition

Groundnut paste, groundnut flour, and boiled groundnuts are commonly used in child feeding programs across Africa. They offer affordable, high-density nutrition that combats malnutrition in school-age children and infants. This is especially relevant for social entrepreneurs working in the health and nutrition space.

Business Opportunities in Groundnut Farming in Nigeria

Groundnut farming offers more than just the chance to sell raw crops at the local market. The value chain is full of untapped potential, from seed production and processing to product development and export.

Entrepreneurs who understand how to position themselves in the right segment can build profitable businesses that scale.

Whether you are a smallholder farmer or an investor looking to enter agriculture, here are the most promising business opportunities within the groundnut sector in Nigeria.

Seed Multiplication and Supply

One of the foundational gaps in the groundnut value chain is access to certified seeds. Most farmers still use market seeds, which results in poor yield and low disease resistance. This opens the door for agripreneurs to become licensed seed producers, supplying improved varieties like SAMNUT 24, 25, or 26 to cooperatives and ADPs.

This business requires training and registration but offers high returns, especially during the planting season when seed demand spikes.

Groundnut Processing for Oil and By-products

Oil extraction remains one of the most profitable areas of groundnut processing. You can produce:

• Groundnut oil for cooking and industrial use
• Groundnut cake as livestock feed
• Peanut husks for compost or biomass energy

Setting up a small-scale oil mill with a press and filter can serve both local markets and SMEs. Profit margins increase when you brand your oil and sell it directly to consumers or restaurants.

Roasted Groundnut and Snack Production

Roasted groundnuts are a staple across Nigeria, from roadside vendors to supermarkets. You can start a snack line producing plain roasted nuts, coated peanuts, or spiced peanut packs. With proper branding and packaging, you can supply stores, schools, and even online markets.

You’ll need a roaster, de-skinner, and sealing machine to begin. This is one of the most accessible processing models for young entrepreneurs and women-led businesses.

Peanut Butter and Speciality Products

Peanut butter is gaining traction among health-conscious consumers. You can start with basic equipment like a grinder and jar sealer. Some Nigerian brands are also producing flavoured butters — honey, chocolate, or spicy versions — to stand out on shelves.

There is also a growing market for:

• Peanut milk (dairy alternative)
• Protein bars or nut clusters
• Groundnut flour for gluten-free baking

Export of Groundnuts and Oil

If you meet quality and phytosanitary standards, you can export raw or processed groundnuts to countries in Asia, Europe, and North Africa. Exporting offers premium prices and bulk contracts, but it also requires proper registration, testing, and logistics planning.

Exporters can operate alone or act as aggregators, buying from local farmers, storing in certified warehouses, and selling to international buyers.

Supply Chain and Logistics Services

If you prefer to stay off the farm, there are still opportunities in:

• Transportation of groundnuts from farm to market or port
• Warehouse management
• Fumigation and pest control services
• Drying and packaging services for third-party processors

These support roles are vital to the ecosystem and can be highly profitable in growing agricultural hubs.

E-commerce and Distribution

With Nigeria’s digital economy growing, you can launch an online store selling branded groundnut products. Use platforms like WhatsApp Business, Jumia, Instagram, or your own website to reach wider audiences.

You can also build a distribution business, supplying finished products to supermarkets, schools, hotels, and eateries.

In every part of the groundnut value chain, there is room for innovation, income, and impact. The key is to focus on one segment, do it well, and scale over time.

Challenges of Groundnut Farming in Nigeria

Groundnut farming in Nigeria offers a wide range of business opportunities, but like any agricultural venture, it comes with its own set of challenges.

From climate-related risks to supply chain issues, understanding these obstacles early will help you plan better and build a more resilient groundnut farming business.

Here are the major challenges you are likely to face and how to manage or avoid them.

Climate Unpredictability and Drought

Weather patterns in Nigeria are becoming increasingly unpredictable due to climate change. Irregular rainfall, prolonged dry spells, and flash floods can all affect groundnut germination, flowering, and pod formation.

Solution:

• Invest in dry-season farming using simple irrigation methods like furrow or drip systems
• Monitor rainfall patterns using mobile apps or agricultural extension advice
• Use drought-tolerant seed varieties like SAMNUT 24 or 25

Pest and Disease Infestation

Groundnut crops are vulnerable to pests like aphids and termites, as well as diseases like rosette virus, early leaf spot, and groundnut rust. These can reduce yield drastically if not addressed early.

Solution:

• Apply preventive pesticides and fungicides at the right growth stages
• Practise crop rotation and proper spacing
• Use certified disease-resistant seeds
• Get training from local ADPs or join a cooperative for group treatments

Limited Access to Finance

Most smallholder farmers lack access to affordable financing for land, seeds, inputs, or machinery. Traditional banks often see agriculture as too risky, and interest rates can be discouraging.

Solution:

• Explore agri-specific lending through NIRSAL Microfinance Bank or anchor borrower programmes
• Join a cooperative to increase bargaining power and loan eligibility
• Use financial tools to apply for structured loans or investor partnerships

Post-Harvest Losses

A significant portion of groundnut crops are lost after harvest due to poor drying, storage, or pest infestation. These losses can wipe out profits and damage your reputation if you supply commercial buyers.

Solution:

• Dry properly on clean tarpaulin
• Store in aerated bags, off the ground
• Fumigate storage areas
• Invest in simple shelling and drying equipment or hire processing services

Price Volatility and Market Fluctuations

Groundnut prices can swing widely depending on the season, harvest volume, and market demand. Farmers often sell at low prices during harvest due to lack of storage or urgent cash needs.

Solution:

• Store and sell off-season when prices are higher
• Build direct relationships with buyers or processors
• Add value through processing (oil, snacks) to command premium pricing
• Explore market trends through Entrepreneurs.ng’s newsletter and resources

Inadequate Mechanisation

Manual farming limits productivity and increases labour costs over time. However, many farmers cannot afford tractors, planters, or shellers on their own.

Solution:

• Hire machinery cooperatively with other farmers
• Apply for mechanisation schemes through government or donor-funded programs
• Outsource post-harvest processing to local processors

Regulatory and Certification Barriers

For processors and exporters, meeting NAFDAC, SON, or NEPC standards can be overwhelming without clear guidance. Failure to meet packaging, hygiene, or documentation standards can delay or block product sales.

Solution:

• Start with small-scale compliance (basic labelling, expiry dates, clean packaging)
• Join the Entrepreneurs Success Blueprint Program to get guidance on structuring your operations for regulatory success
• Work with certified labs for aflatoxin and safety testing if you plan to export

Facing these challenges does not mean groundnut farming is too risky. It means you must enter the business informed and prepared. Many of the most successful agro-entrepreneurs in Nigeria started with small setbacks but scaled up by planning, partnering smartly, and building systems that support growth.

Marketing and Selling Groundnuts in Nigeria

After a successful harvest or processing cycle, the next big question is: how do you sell your groundnuts profitably? Many groundnut farmers in Nigeria struggle not because their product is bad, but because they lack access to good markets or sell in desperation during oversupply periods.

This section explores smart ways to market and sell your groundnuts – whether raw, processed, or branded — so that you get the best value for your effort.

Sell at the Right Time

Timing is everything. Most farmers sell their produce immediately after harvest when the market is flooded and prices are low. Those who store and sell during off-season (typically three to four months after harvest) often earn up to 30 to 50 percent more per kilogram.

Here is a strategy to use:

• Invest in proper storage (see earlier section)
• Monitor market trends using agri-data apps or cooperative market reports
• Plan your sales calendar around price cycles

Understand Your Target Market

Your marketing strategy will depend on the product format:

• Raw pods: Best for rural or open markets
• Shelled kernels: Ideal for processors, oil mills, and bulk buyers
• Roasted nuts or peanut butter: Target urban supermarkets, snack shops, and online buyers
• Groundnut oil: Market to restaurants, households, or bulk distributors

Each buyer type has different price points, quality expectations, and negotiation styles. Know your market before harvesting.

Sell to Local Markets and Aggregators

For smallholder farmers, the easiest entry point is local markets or aggregators who buy in bulk. These buyers are always active during the harvest season and may also be connected to larger processors or exporters.

Follow these tips:

• Join a farmers’ cooperative or association to access larger markets
• Use WhatsApp or SMS groups to stay updated on buyer visits or price changes
• Negotiate per kilogram pricing based on pod quality, dryness, and quantity

Supply to Processors and Industrial Buyers

Oil mills, food processors, and flour manufacturers buy groundnuts in large volumes. If you are consistent with quality and quantity, you can negotiate long-term supply contracts.

How to connect to buyers:

• Visit local processing companies directly, or list your availability on agro platforms
• Attend trade fairs or agricultural exhibitions
• Partner with aggregators who already supply big brands

If you are ready to structure your supply chain and negotiate better, the Entrepreneurs Success Blueprint Program can guide you through building a sales pipeline and managing client relationships.

Launch a Branded Product

If you are processing groundnuts into oil, snacks, or butter, a branded product allows you to control pricing, tell a story, and build a customer base.

Here are available distribution options:

• Supermarkets and local shops
• Pharmacies and health stores (for peanut butter or milk)
• Restaurants and catering services
• Direct-to-consumer via Instagram, WhatsApp Business, or your own website

Make sure your product is well-packaged, has a clear label, and meets basic health and safety guidelines. If you need help creating packaging and positioning, use the Brand Asset Services available through Entrepreneurs.ng.

Sell Through Online Channels

E-commerce and digital marketing are now essential. You can sell directly using:

• Instagram or Facebook Shops
• WhatsApp catalogues
• Jumia, Konga, or niche agro-food marketplaces
• Your own website or landing page

Promote your product using clear images, health benefits, customer reviews, and availability. If you are consistent and responsive, you can build a loyal customer base with minimal overhead.

Export Opportunities

If your product meets the right standards, you can sell to international buyers through:

• NEPC trade fairs or virtual B2B matchmaking
• Global platforms like Alibaba, TradeKey, or ExportHub
• Working with licensed exporters or cooperatives focused on foreign markets

Make sure your groundnuts are tested for aflatoxin, well-packaged, and properly documented. Refer to our earlier section on Export Requirements for a full guide.

No matter how you choose to market and sell your groundnuts, having a clear strategy, quality product, and reliable distribution plan is key.

Funding and Government Support for Groundnut Farmers in Nigeria

Groundnut farming in Nigeria is capital-intensive if you want to scale, process, or export. The good news is that there are several funding options, grants, subsidies, and government-backed initiatives designed to support farmers, especially those involved in cash crops like groundnuts.

Whether you are a first-time farmer or an experienced agro-processor looking to expand, here are the top ways to access funding and support.

Central Bank of Nigeria (CBN) Intervention Programmes

The Central Bank of Nigeria has several funding schemes aimed at empowering farmers and agro-entrepreneurs. These include:

Anchor Borrowers Programme (ABP)– Offers input financing and guaranteed off-take for smallholder farmers through partnerships with aggregators and processors. Groundnut is recognised under the programme in several northern states.

Agricultural Credit Guarantee Scheme Fund (ACGSF)– Provides up to ₦10 million in loans to farmers with reduced collateral requirements. Loans are partially guaranteed by the CBN to reduce risk for banks.

Accelerated Agricultural Development Scheme (AADS)– Targets youth and supports large-scale agricultural production, often through clusters or cooperatives. It includes training, land access, and credit.

Visit your local bank, microfinance institution, or state ADP to get listed for CBN-backed schemes. You must have a registered business and a clear plan.

Bank of Agriculture (BOA)

BOA offers short and medium-term loans for farmers at low interest rates. Groundnut farmers can access credit for equipment purchase, working capital, and input financing. BOA also supports group lending for cooperatives.

Requirements:

• Valid business registration
• Collateral or guarantor
• Loan application with a farm plan or business proposal

NIRSAL Microfinance Bank (NMFB)

NMFB, through its AGSMEIS and Targeted Credit Facility, provides loans to farmers and agro-SMEs with or without collateral. Repayment is flexible, and the interest rate is subsidised.

Always include proper cost estimates, pricing strategy, and sales channels in your application.

State-Level and Donor-Funded Programmes

Many state governments and international donors provide support through:

State Agricultural Development Programmes (ADPs)– These provide extension services, training, and sometimes subsidised seeds and fertiliser. Visit your local ADP office for updates.

IFAD Value Chain Development Programme (VCDP)– Active in several Nigerian states, this programme supports rural farmers in infrastructure, capacity building, and cooperative formation.

USAID and FAO Projects– Occasionally fund groundnut value chain development, especially in food security regions like the North East and North West.

NGOs and Development Agencies

NGOs such as Heifer International, Oxfam, and Synergos often run time-limited funding or capacity-building projects for crop farmers and cooperatives. They also provide inputs, training, and access to markets.

Register with a cooperative or cluster to qualify for group-based applications. Cooperatives are preferred for grants and large funding schemes.

Private Sector and Agritech Financing

Several agric tech platforms have previously funded smallholder farmers through input finance and market linkage. Some of these platforms also offer:

• Mobile training
• Credit scoring
• Insurance coverage

Keep an eye on their calls for participation or register your interest on their websites.

Conclusion

Groundnut farming in Nigeria is not just another agricultural hustle. It is a serious business opportunity that can generate steady income, support food security, create jobs, and even grow into a global brand. From selecting the right seeds and preparing your land to processing, branding, and exporting, every stage of this venture offers the chance to build something profitable and sustainable.

Yes, the challenges are real — rising costs, climate unpredictability, limited access to funding, and inconsistent markets. But the rewards are equally real for those who enter the business with a plan, stay consistent, and use available tools and support systems.

Whether you are starting with half a hectare, launching a peanut snack brand, or planning to export groundnut oil, the tools are in your hands. Use this guide as your blueprint, get the right training, start small if you must, and grow with structure.

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Frequently Asked Questions About Groundnut Farming in Nigeria

1. What is groundnut farming?

Groundnut farming is the cultivation of peanuts for food, oil, snacks, and animal feed, and it is a major cash crop business in Nigeria with both local and export opportunities.

2. Is groundnut farming profitable in Nigeria?

Yes, groundnut farming in Nigeria is highly profitable, with net returns ranging from ₦900,000 to over ₦1.3 million per hectare, depending on yield, input cost, and market price.

3. What is the cost of groundnut farming in Nigeria?

The cost of groundnut farming in Nigeria ranges from ₦467,000 to ₦645,000 per hectare, covering land preparation, seeds, fertiliser, labour, and post-harvest handling.

4. How long does groundnut take to mature?

Most groundnut varieties in Nigeria mature within 90 to 120 days, with early-maturing varieties like SAMNUT 24 ready in as little as 90 days.

5. What are the best groundnut varieties to plant in Nigeria?

The best groundnut varieties in Nigeria include SAMNUT 24, SAMNUT 25, and SAMNUT 26, which are high-yielding, disease-resistant, and suitable for various ecological zones.

6. What type of soil is best for groundnut farming?

Groundnut thrives in well-drained, sandy-loam soil with a pH of 6.0 to 7.0, and soil testing is recommended before planting.

7. What is the best time to plant groundnuts in Nigeria?

The best time to plant groundnuts is at the start of the rainy season (April to June) for rain-fed farming or between November and December for dry-season farming under irrigation.

8. How many kilograms of groundnut can be harvested per hectare?

Under good conditions, farmers can harvest between 1,500 kg and 2,500 kg of raw pods per hectare or 900 kg to 1,500 kg of shelled groundnuts.

9. How much is a bag of groundnut sold in Nigeria?

A 100 kg bag of unshelled groundnuts currently sells for between ₦85,000 and ₦120,000 depending on the season, location, and product quality.

10. What are the steps involved in groundnut farming?

The main steps are land preparation, seed selection, planting, fertilising, weeding, pest and disease control, harvesting, drying, shelling, and storage.

11. What tools or equipment are needed for groundnut farming?

Basic tools include hoes, sprayers, tarpaulins, shellers, and drying mats, while commercial farms use tractors, planters, groundnut harvesters, and oil presses.

12. Can I grow groundnut on a small scale?

Yes, groundnut farming can start on as little as half a hectare, making it ideal for beginners, youth farmers, and those looking to test the business before scaling.

13. How do I process groundnuts for oil?

To process groundnuts into oil, clean and dry the seeds, use a mechanical oil press to extract oil, and filter it before packaging for sale.

14. What are the uses of groundnut?

Groundnuts are used to produce edible oil, peanut butter, roasted snacks, animal feed, flour, and even skincare products due to their oil content.

15. How can I brand and package groundnut products?

Use food-safe jars or sachets, include clear labels with nutritional and expiry details, and register with NAFDAC if selling at scale or to retail outlets.

16. Can I export groundnuts from Nigeria?

Yes, groundnut export is possible and profitable if you meet requirements such as NEPC registration, aflatoxin testing, phytosanitary certification, and proper packaging.

17. What are the major challenges in groundnut farming in Nigeria?

Challenges include climate variability, pests and diseases, lack of financing, poor post-harvest practices, and price fluctuations at harvest.

18. How can I access funding for groundnut farming?

Farmers can access funding through CBN’s Anchor Borrowers Programme, Bank of Agriculture, NIRSAL Microfinance Bank, and state-level agricultural grants and schemes.

19. What are the health benefits of groundnuts?

Groundnuts are rich in protein, healthy fats, fibre, and antioxidants, supporting heart health, brain function, and weight management, while offering energy and essential nutrients.

20. How can I write a business plan for groundnut farming?

Use a structured template like the Business Plan Template from Entrepreneurs.ng to plan your budget, forecast profits, and apply for funding.

21. What value-added products can I make from groundnuts?

You can produce groundnut oil, roasted nuts, peanut butter, groundnut cake for feed, flour, or groundnut milk, each with unique market and income potential.

22. How do I sell groundnuts in Nigeria?

You can sell at local markets, to processors, through bulk aggregators, in supermarkets, or online using platforms like WhatsApp Business, Instagram, or Jumia.

23. Can groundnut farming be done by youth or women?

Yes, groundnut farming is ideal for youth and women due to its low entry barrier, short maturity cycle, and opportunities in processing, branding, and retail.

24. How can I learn more about starting a successful groundnut business?

Join the Entrepreneurs Success Blueprint Program to get expert mentorship, training, legal structuring, and strategic growth support for your agribusiness.