Agriculture in Nigeria presents a promising venture, given the country’s abundant arable land and growing demand for agricultural products. Starting an agriculture business in Nigeria requires careful planning, dedication, and a solid strategy. Here are seven essential tips to guide you in establishing a successful agriculture venture in Nigeria in 2023.
This concept may be somewhat correct because they practiced subsistence agriculture, in which a farmer simply grows food for his family and friends. Agriculture, particularly farming, has taken on a new face in today’s globe; farmers now invest in big quantities and use modern equipment and facilities, as opposed to the primitive implements of the past.
There are various reasons why agriculture production should be considered as a career option. The most fundamental reason to consider farming as a business is that humans will always require food and clothing. Agriculture is the industry that produces both food and clothing materials.
More so, as Nigeria’s population continues to grow, there will be a greater demand for food to meet the country’s demands. In Nigeria, there is a surge of interest in the agriculture industry. Many entrepreneurs are developing an interest in various aspects of agriculture, with the goal of turning it into financially viable ventures using various forms of information technology. As a result, the agricultural sector is rapidly reclaiming its long-lost prominence.
Furthermore, the Federal Government of Nigeria has supported agriculture through a variety of programs throughout the years; from local farmers to foreign investors, the Nigerian government today actively supports efforts to restore the country to its former glory (agricultural dependence).
To do this, the Nigerian government has softened several of its laws, making it simpler for local and international farmers to do business in the country. Tax rebates on agricultural produce and investment allowances for agricultural business enterprises developed in rural areas without crucial infrastructural amenities are also part of this mitigated strategy.
Agriculture is one of Nigeria’s fastest-growing industries. Anyone with a basic understanding of farming, manufacturing, and operations may establish a profitable agriculture firm with good strategic planning. You’ll discover a helpful guide here if you want to build a profitable agriculture producing business.
What Is Agriculture?
Agriculture is the science and art of cultivating individual plants and rearing domesticated (livestock) animals for the purpose of generating food, feed, fiber, and a variety of other desirable items, as well as the processing of these products for human use. Foods, fibers, fuels, and raw materials are all examples of large-scale agricultural products (such as rubber).
Business Opportunities For Agriculture in Nigeria
a. POULTRY FARMING: Poultry farming is the practice of keeping domesticated birds such as chickens, ducks, turkeys, and geese for the purpose of food grazing. Every day, a variety of dairy products are consumed, including eggs, chicks, and cheese, among others.
b. PIG FARMING: Pig farming refers to the practice of raising pigs. It is one of Nigeria’s most profitable and successful animal industries. Pigs are prolific breeders, capable of producing 10 to 14 piglets in a single birth, which makes commercial pig farming profitable.
Pig meat (pork) is in high demand since it is both nutritious and delicious. In terms of consumption, the pork market in West Africa is valued around $3 billion, with imports accounting for 80% of the total.
c. MAIZE FARMING: In Nigeria, maize farming is a major source of food. Maize, often known as corn, is thought to be one of Africa’s most popular starchy foods. Maize can be boiled, roasted, or further processed into pap, cornflour, popcorn, corn flasks, and a variety of other goods. Maize is in high demand all year due to its many uses.
d. RICE CULTIVATION: Nigeria is still West Africa’s major rice grower and Africa’s third largest producer after Egypt and Madagascar. Rice production in Nigeria is estimated to be at 3.6 million metric tons per year. Surprisingly, despite its massive production, Nigeria is still unable to meet its domestic demand, which is estimated to be over 5.5 million tons.
e. FISH FARMING: The process of rearing fish is called fish farming. It is a prominent sector in Nigeria, and it is growing in popularity as the demand for high-quality animal protein rises. Fish farming has the advantage of not being seasonal, as opposed to other types of farming. It’s possible to accomplish it in both wet and dry weather.
f. CASSAVA FARMING AND PROCESSING: Cassava farming is getting more profitable by the day, thanks to Nigeria’s growing variety of cassava products. This farm crop has traditionally been a source of livelihood and food for millions of Nigerians. 90% of Nigerian families consume cassava products on a daily basis. Garri, wheat-flour, animal feed, commercial caramel, and many more cassava dishes are popular.
G. Goat rearing: Goats are four-footed domestic animals, their feet are made up of hard hooves. They are ruminants and the males are mostly born with a beard and horns. An individual can start this as an agricultural business and make a lot of profits but first you must acquire a good number of healthy male and female goats, the two genders will hasten the birth of new goats. A land for them to feed and stay on. A building in form of a shed or barn or whatever covered building the animals can live on. Then, the individual can make adequate arrangements to make sure they are fed, have clean water, are protected and are accounted for, so that none of the goats gets lost or become harmed on its own or during childbirth.
The place they stay needs to be cleaned from dirt, dirty water should be changed and food brought regularly. They should be allowed some free time to move around but under the careful guidance of the owner or an employee. Goats are very expensive, so a lot of money can be made when they are sold and you take of the next new breed and the business cycle continues. Their meat is very delectable that is usually known when you want to eat or sell it or use it’s animal products for other profitable activities.
H. Plantain plantation: A plantain is a perennial crop and are related to bananas. The inner white parts are succulent in nature and that part maybe covered by a greenish outer layer. Plantains may come in various forms because they are made up of different species. Although it’s lifespan may not be much, some times as it bears fruits and gets old, a new breed also grows along side the old plantain. Iit grows within a year and is not limited by any seasons.Having a plantain plantation is a large business and has a lot of prospects.
Selling those bunches of plantain or exporting them is a lot of money coupled with using the leaves for cooking food and other related purposes. Plantain has a lot of products. It can be converted into like flour, it can be fried to an extent that it is so dry; it turns into chips, it can be boiled, roasted or combined with other food stuffs. When you want to plant it, you get the young plantain suckers and put inside the fertile loamy soil preferably during the rainy season, you plant it where it will get adequate sunlight then add water and manure for proper growth.
How To Start Agriculture Business in Nigeria
1. MAKE RESEARCHES AND DETERMINE THE AGRICULTURE ASPECTS IN WHICH TO INVEST: Defining the scope of an agricultural business is a key aspect of getting it off the ground. Agriculture is a large industry with many different sub-sectors.
Would you like to start a vegetable farm? Farms with livestock? Do you intend to plant cashew, cassava, or cocoa (perennial crops) on a large scale? Or how about a mixed farm? I.e. a livestock and agriculture operation with a variety of livestock and crops.
All of these are important topics to consider when starting an agricultural business. This, in my opinion, should be the first step for any potential agribusiness investor. Outlining your objectives allows for effective planning.
2. OBTAIN THE TECHNICAL KNOW-HOW REQUIRED IN THAT INDUSTRY: It is better to obtain all of the technical abilities needed to embark into the agricultural production industry after picking the sector you wish to venture into.
This is an important phase because your ability to succeed in any subject is heavily influenced by your understanding of that field.
3. FORM AN ENTREPRENEURIAL PLAN (BUSINESS PLAN): Is a business strategy required for agriculture? Yes. In agribusiness, a business plan is perhaps more critical than it is in most other industries. This isn’t to argue that a business plan isn’t necessary in other industries. Agriculture is more than just planting and harvesting; it provides income not only to individuals but also to nations, and it should be treated as such.
A business plan helps investors understand the concept behind your business, how your products will be sold, who your target market is, and how the company plans to sustain the market. Most importantly, it portrays professionalism and the viability of your business venture.
4. OBTAINING FUNDS: The next stage is to secure the capital required to operate the company. You could get money by taking out bank loans, looking for investors, borrowing from friends and relatives, or asking for government grants.
5. OBTAIN A PRODUCTION SITE OR FARMLAND: After obtaining your cash, the following stage is to acquire a production site or farmland, which may be obtained either outright or by renting the property for a set amount of time. Make sure your acreage or production site is appropriate for your agricultural operation.
Getting a piece of land, on the other hand, isn’t sufficient for starting an agriculture business. There are a few more things to consider.
a. Selecting a location with the best climate for the crops you want to grow.
b. Determining the topography of the land.
c. Identify the soil type that best suits your chosen agricultural produce, such as cashews and cocoa, which grow well in sandy loams, and yams and cassava, which grow well in sandy clay.
When choosing farmland, all of these factors, as well as others, must be taken into account.
6. APPLY FOR A COMMERCIAL NAME, LICENSE, OR PERMIT: Obtaining a business name, license, or license is a legal requirement for establishing an agricultural business in Nigeria. A business name, usually referred to as a trading name, is a name or title that a person or other legal entity uses to conduct business. Your firm becomes a legal entity after you register a business name.
Before doing business in Nigeria, a company with foreign ownership must get a business license from the Ministry of Internal Affairs. It is critical to understand that starting a business in Nigeria needs the acquisition of a license or permit that allows the company to be formally and legally recognized.
7. OBTAIN REQUIRED TOOLS AND LABOR FOR PRODUCTION: This is the final step in the process of beginning agricultural production. It’s time to put a property into production after you’ve bought it. This step entails obtaining all essential tools, machines, and goods, as well as the necessary labor to begin production.
Agricultural production will never be obsolete because there will always be a demand for food, which means that agricultural products will always be in demand. The agriculture production business in Nigeria can be a lucrative and successful enterprise to start because of the vast market requirement and your ability to develop a broad supply chain network.
If you’re looking to build a supply chain business in Nigeria, agricultural industry is a great option to consider.