Maize Milling Business in Nigeria: 9 Proven Steps to Start & Succeed with Double Profits

Last updated on August 11, 2025

In Nigeria’s bustling agricultural sector, few crops hold as much importance as corn, also known as maize. It’s more than just a staple food; it’s a foundational resource for the entire economy. The processing of corn — from cleaning and milling to packaging — turns raw maize into high-value food and feed products.

As a business, corn milling offers a prime opportunity for entrepreneurs. The demand for processed corn is insatiable, and the opportunity to participate in this market is significant. This guide will walk you through the entire journey, from understanding the market to calculating your profits, giving you the tools to start your own maize milling business. For more high-profit ideas, you can also check out our guide on the 17 Best Crops to Grow in Nigeria for High Profits.

At a Glance

• 💵 Startup Cost: Can range from ₦50,000 for a small-scale mill to over ₦1 million for a commercial setup.
• 📦 Primary Products: Maize flour for human food and bran/germ for animal feed.
• 🌾 Milling Yield: Typically, 100kg of maize yields 70-80kg of flour, with the rest as valuable by-products.
• 💰 Key to Profit: The “double income” model of selling both flour and animal feed.

Understanding the Market Opportunity

The market for corn-based products in Nigeria is massive and growing. As a staple of the national food supply and a crucial input for expanding livestock and aquaculture, the demand for both flour and animal feed is strong. The livestock industry, in particular, is expanding rapidly, creating a constant need for high-quality, affordable feed. This presents a stable and growing opportunity for maize milling businesses. For a deeper look at the raw material side, see How Profitable is Corn Farming and Which Month Can I Plant Maize in Nigeria.

What is the value of the flour market? The value of the flour market in Nigeria runs into hundreds of billions of naira annually, driven by a growing population and demand from both households and the bakery industry.

What is the price of flour mills of Nigeria? The price of flour milling machinery varies widely based on capacity and brand. A small-scale local mill can cost between ₦50,000 and ₦500,000, while larger, industrial-grade machines like roller mills can run into the millions of naira.

How much is maize flour? The average retail price for maize flour is between ₦1,200 and ₦2,000 per kilogram, though this fluctuates with the season. Wholesale prices for bulk purchases will be lower, but offer a more consistent revenue stream.

Your potential customers are diverse, including local bakeries, informal food vendors, large-scale poultry and fish farmers, and individual households. This broad customer base provides stability and multiple avenues for generating income.

From Corn to Product: The Maize Milling Process

How does corn turn into flour? The process involves cleaning, degerming, milling, and sifting the kernels to separate fine flour from coarse by-products. This process is similar in concept to what is covered in our guide on Processing Sweet Potatoes into Flour and Chips or How to Build a Successful Rice Farming Business in Nigeria.

The Milling Flow

Here is a simple, step-by-step breakdown of the maize milling process:

1. Cleaning & Sorting: Remove impurities like stones, dirt, and foreign seeds from the maize kernels.
2. Degerming: The maize is passed through a machine that removes the germ and the outer bran layers. This is crucial for producing high-quality, white flour.
3. Milling/Grinding: The degermed kernels are ground into a fine powder. This can be done using a manual grinder for very small batches or an electric milling machine for larger quantities.
4. Sifting/Packaging: The milled product is passed through a sieve to separate the fine flour from the coarser particles (the bran and germ), which are packaged separately.

This is where the “double profit” model comes in. The coarse by-products like bran and germ are rich in nutrients and are highly sought after by livestock farmers. By selling both the flour and the by-products, you can generate a steady stream of income.

🌽 Maize Products

• White Maize Flour
• Yellow Maize Flour
• Cornmeal
• Animal Feed (from by-products)
• Grits

Milling Yields & Product Value

What is the milling yield of flour? Milling yield is the percentage of usable flour you get from raw maize. A typical yield is 70–80%, meaning 100kg of maize will produce 70–80kg of flour plus valuable by-products like bran.

The yield is the amount of usable flour you get from a given quantity of maize. This means a 100kg bag of raw maize will produce approximately 70-80kg of fine flour.

Several factors affect your yield:

• Maize Variety: Some corn varieties have a higher starch content and a tougher outer layer, which can affect the final yield.
• Moisture Content: Drier maize kernels are easier to mill and produce a better yield.
• Machine Efficiency: The quality and maintenance of your milling machine play a significant role in how much flour you can extract.

Does milling your own flour save money? Yes, milling your own flour saves money by cutting out the middleman and allowing you to capture the added value. This strategy significantly increases your profit margin compared to simply buying and reselling pre-packaged flour.

Starting Your Maize Milling Business: A Step-by-Step Guide

How do I start a maize milling business? You can start a maize milling business by conducting market research, selecting a product focus, and acquiring the necessary location, permits, and machinery. For help with your business plan, see our guide on an Agribusiness Plan That Gets Funded.

Realistic Startup Paths

The path you take depends on your budget and ambition. Here are three common entry points:

• Beginner (₦50k – ₦250k): A low-cost manual or small electric grinder is the perfect starting point. Focus on serving your immediate community, such as neighbors and local markets. Your goal here is to learn the process, build a customer base, and prove the business model before you scale up.
• Intermediate (₦300k – 1m): Upgrade to a medium-scale electric mill with a higher capacity. This allows you to serve larger customers like bakeries and livestock farmers. At this level, you can register your business and begin establishing a brand.
• Professional (₦1m+): This path involves investing in a fully automated, industrial-grade mill. Your focus is on large-scale production, serving food manufacturers and major wholesalers. This requires a detailed business plan, significant capital, and a well-structured supply chain.

For example, Tunde from Kwara State started his milling business with just a ₦250,000 grinder. In his first year, he worked hard to build a customer base and became known for his high-quality flour. He sold a total of 310 bags of flour and 110 bags of feed. After accounting for all his expenses, he was able to make a net profit of ₦1.6 million. His success story shows that you don’t need a massive initial investment to get started.

How much does it cost to start a mill? The startup cost for a maize mill in Nigeria can range from ₦50,000 for a small-scale mill to over ₦1 million for a commercial setup.

Scale	Startup Cost (Est.)	Gross Monthly Profit (Est.)
Small-Scale	₦50,000 – ₦250,000	₦150,000 – ₦400,000
Medium-Scale	₦300,000 – ₦1,000,000	₦800,000 – ₦2,500,000

What is the cost of a large scale flour mill project? A large-scale flour mill project can cost upwards of ₦1 million, sometimes significantly more, depending on the level of automation and processing capacity. These projects often include silos, cleaning machines, multiple mills, and automated packaging systems.

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Mill Purchase Checklist

Before you buy a milling machine, ask these crucial questions:

• Warranty: Does the machine come with a warranty? How long is it, and what does it cover?
• Motor Power: What is the horsepower (HP) or kilowatt (kW) rating? A higher rating means more grinding power and better output.
• Output Per Hour: What is the machine’s capacity in kilograms per hour (kg/hr)? Match this to your production goals.
• Spare Parts: Are spare parts (like milling blades, belts, and screens) readily available in Nigeria? This is critical for maintenance and avoiding long downtimes.
• Power Source: Does the mill run on single-phase or three-phase power? Ensure your location can support the required electricity supply.

Costs, Pricing & Profitability

How to calculate the cost of flour: To determine your profitability, you must calculate all your costs. The primary costs are raw materials (maize), electricity/fuel, labor, packaging materials, and depreciation of your machinery. A deeper dive into financial planning can be found in our article on Farm Financial Management in Nigeria.

Localized Pricing and Sourcing

The price of raw maize is not uniform across Nigeria. It’s often cheaper in major maize-producing states during harvest season.

• Sourcing Maize: Reliable maize can be sourced from local farmers’ cooperatives, regional agricultural fairs, and dedicated commodity markets. Look for suppliers in states known for their maize production, such as Borno, Niger, Plateau, Katsina, Gombe, Bauchi, Kogi, Kaduna, Oyo, and Taraba. Buying directly from these sources can significantly reduce your raw material costs.
• Seasonal Pricing: Maize prices are typically at their lowest during the harvest season (August to November). Buying in bulk during this period can cut your annual raw material costs by 20–30%.
• Regional Price Differences: The price per bag of maize can vary by as much as 20–40% between a major producing state and a state that relies on imports.

What is the profit per margin? Profit per margin in milling is the percentage of profit you make from your total revenue. A well-managed mill can achieve margins of 20% or more, depending on operational efficiency and market prices. One study of medium-scale grain mills in Nigeria found a net profit of over ₦4.5 million per year, proving the high potential of this business model.

What is profit milling? “Profit milling” is a strategy that maximizes earnings from every part of the maize kernel, not just the flour. It involves seeing by-products like bran and germ as a second source of profit.

Current Market Prices (Approximate)

Based on recent market data, here are some realistic price ranges for Nigeria.

Item	Good Season (Harvest)	Lean Season (Pre-Harvest)
Maize Price (Raw)	₦650 – ₦750 per kg	₦800 – ₦1,200 per kg
Maize Flour Price (Retail)	₦1,200 – ₦2,000 per kg	₦1,200 – ₦2,000 per kg
Animal Feed Price	₦400 – ₦600 per kg	₦400 – ₦600 per kg

Realistic Profit Scenarios

Let’s look at how your profit can change depending on your scale and the season.

Scenario 1: Small-Scale Batch (100kg of Maize)

Item	Good Season (Cheaper Maize)	Lean Season (Expensive Maize)
Cost of Maize	₦65,000 (100kg x ₦650/kg)	₦100,000 (100kg x ₦1,000/kg)
Milling Yield (flour)	75kg	75kg
Milling Yield (feed)	25kg	25kg
Revenue (Flour)	₦105,000 (75kg x ₦1,400/kg)	₦105,000 (75kg x ₦1,400/kg)
Revenue (Feed)	₦12,500 (25kg x ₦500/kg)	₦12,500 (25kg x ₦500/kg)
Total Revenue	₦117,500	₦117,500
Gross Profit	₦52,500	₦17,500

Scenario 2: Medium-Scale Batch (1 tonne / 1,000kg of Maize)

Item	Good Season (Cheaper Maize)	Lean Season (Expensive Maize)
Cost of Maize	₦650,000	₦1,000,000
Milling Yield (flour)	750kg	750kg
Milling Yield (feed)	250kg	250kg
Revenue (Flour)	₦1,050,000 (750kg x ₦1,400/kg)	₦1,050,000 (750kg x ₦1,400/kg)
Revenue (Feed)	₦125,000 (250kg x ₦500/kg)	₦125,000 (250kg x ₦500/kg)
Total Revenue	₦1,175,000	₦1,175,000
Gross Profit	₦525,000	₦175,000

The net margin, after accounting for fuel, labor, and other operational costs, could be substantial.

Common Pitfalls to Avoid

Starting a new business is challenging, and avoiding common mistakes can save you significant time and money. Here are some of the most frequent pitfalls in the maize milling business:

• Underestimating Packaging Costs: Don’t forget to factor in the cost of good packaging. Quality sacks, bags, and labels not only protect your product but also build your brand and command a higher price.
• Poor Storage: Spoilage from mold, insects, and rodents can wipe out your inventory. Invest in proper storage solutions, such as airtight containers or a dedicated, dry warehouse, especially if you buy in bulk during harvest season.
• Overpaying for Machinery: Research is key. Don’t rush into a purchase. Compare prices from multiple local and international suppliers. Sometimes a used, well-maintained machine is a better investment than a cheap new one that is prone to breaking down.
• Neglecting By-Products: The bran and germ from maize milling are a second source of income. Not marketing and selling these by-products is a major missed opportunity for double profits.

Insider Tips: From the Field to the Mill

This section shares a few practical, on-the-ground tips that can help you stand out and run your business more efficiently. These are the kinds of things you only learn from experience.

1. 🌾 Maize Variety Matters: To get the best yield and quality, you need maize with high starch content and low moisture. Look for varieties like the SAMMAZ series or Ife Maizehyb-08, which are known for their milling qualities. A good rule of thumb is to seek out “Dent Corn” or “Flour Corn” varieties, as these are specifically bred for their soft, starchy kernels, perfect for making fine flour.
2. 🛠️ Stock up on Sieve Meshes: The sieve mesh is a critical, high-wear part of your milling machine. It’s what separates the fine flour from the bran and other by-products. A torn or clogged mesh can stop production completely. It’s always a good idea to have a few spares on hand to ensure you can switch them out and keep the mill running without any downtime.
3. 🛒 Diversify Your Bag Sizes: Don’t just stick to one bag size. Think about your customers. Households typically buy in smaller quantities like 1kg or 2kg bags, while bakeries and livestock farmers need much larger quantities, such as 25kg or 50kg sacks. Offering a variety of sizes makes your product accessible to a wider market and helps you capture different types of sales.
4. 🤝 Team Up to Save Money: The cost of raw maize is your biggest expense. One of the best ways to cut this cost is to form a group buying cooperative with other small-scale millers in your area. By pooling your resources, you can buy maize directly from large-scale farmers or commodity markets in bulk, which often gets you a significant discount. This can be a game-changer for your profit margins.

Getting Started Now: Choose Your Path

The most important step is the first one. Here’s a simple way to figure out your starting point, based on your available capital.

• If you have ₦50k–₦250k: Your best bet is to start small and local. Acquire a simple electric grinder and learn the business by serving your immediate community. Focus on selling directly to neighborhood households and small bakeries. Your goal is to build a reputation for quality, master your process, and reinvest your profits to upgrade to a larger machine.
• If you have ₦500k–₦1m: You can bypass the smallest scale and invest in a small automated mill. This will give you a higher output and better consistency. At this level, you can afford to hire a single assistant to help with sorting and packaging. Your customer base can expand to include wholesalers and larger bakeries, giving you a more stable and higher-volume revenue stream.
• If you have ₦5m+: Your vision is much larger. You can go for a fully automated system with multiple mills and cold storage facilities. This will allow you to produce high volumes of both flour and feed, and store raw maize bought during the harvest season for use all year round. Your market will be large-scale food manufacturers, commercial farms, and major distributors.

Final Thoughts

Maize milling is a robust and essential business. By understanding the market, mastering the milling process, and strategically managing your costs and sales, you can build a highly profitable enterprise. The double income opportunity from producing both flour and animal feed is a powerful model for success. The journey starts with a single bag of corn and a plan. With careful execution, you’ll be turning maize into profit in no time.

Frequently Asked Questions (FAQs)

Your Next 5 Steps:

1. Decide on your target market.
2. Choose your maize product focus (flour, feed, or both).
3. Draft your business plan.
4. Secure funding and buy starter equipment.
5. Launch with a harvest-season maize buy.

Further Reading to Kickstart Your Business

• For more on maize production: How to Start a Maize Farming Business in Nigeria
• To create a strong business plan: How to Write an Agribusiness Plan That Gets Funded
• For other processing ideas: Processing Sweet Potatoes into Flour and Chips
• To secure funding for your business: Top 7 Agric Business Loans in Nigeria