Groundnut oil extraction by a mechanical device is gaining more recognition in Nigeria but has been limited to industrial use only and becoming inaccessible to local farmers due to the sophistication, complexity, and high cost of available oil extracting machines. A simple and low-cost groundnut oil extracting machine was developed which is easy to operate and maintain at an affordable cost for local farmers using locally available material. This is to address the limitation of groundnut oil extraction in Nigeria, especially among local farmers. The machine was designed to run with a 3 hp single-phase variable speed electric motor at a specific speed of 540 rev/min and it works based on impact, compressing, and shearing force on the groundnut. The experimental machine is capable of extracting oil and at this same time process groundnut as a by-product into cakes called kuli-kuli. The experimental machine was tested with three replicates of roasted groundnut to determine its performance efficiency. The research showed that the machine had a performance efficiency of 60.1%. The machine developed was found to be cheap, effective, and affordable to the rural farmers.