5 Best Agribusiness Ideas in Nigeria

    Agribusiness is the business of agriculture which involves all the process of production – producing and marketing of crop produce to satisfy the needs of consumers. Simply say, it’s a business that derives its income from the mere practice of agriculture.

    Over the years, agriculture has become a very lucrative trade in Nigeria, and other nations of the world. With many opportunities, agribusiness became a concept brought to realization by the agriculture community.

    Agribusiness has brought a lot of change to the agricultural community. Notable areas include employment and immense improvement in the quality of farm produce. These developments have made agribusiness a lucrative option for investors in Nigeria, especially with the numerous encouragements in form of loan from the government.

    Top 5 Agribusinesses in Nigeria

    In this article we’re going to list the Top 5 agribusinesses that one can invest in, and start profiting in no time. This list has been created from extensive market research, enabling us to display products that need little or no effort to market nationwide – products that sell themselves.

    • Cassava Farming

    Cassava is one of the three most popular sources of food for Nigerians (alongside rice and beans) has to come first on the list because it can be used to make a variety of foodstuffs. This flexibility has made the demand for this product pretty much unlimited. Though Nigeria is currently the largest cassava producing country, it still doesn’t saturate demand for it within the country.

    A KG of cassava currently sells for ₦700, and a bag contains 50 KG, giving you ₦35000 per bag. It’s also a booming commodity in the foreign market, so exporters are not left out. Pest and diseases that plague this farm produce is mild, and relatively easy to control, when compared to other crops, and put side-by-side with the profit that is achievable. The only problem is its growth cycle is 10-12 months, so you can harvest just once a year, which means you need a large portion of land to maximize profit.

    • Rice Farming

    A whopping 80% of Nigeria’s population eat rice every Sunday, and over 60% eat it at least twice a week. The statistics show the demand for rice in Nigeria is endless, as a rice producer you only need to spend little or nothing at all for promotions, and advertising before your product starts selling in the –market – the high demand from the market does almost everything for you. A 50 KG bag of rice currently sells for about ₦30000, and this is mostly due inability of existing rice farmers in Nigeria to meet up with the high demand.

    It takes an average of 4 months to cultivate, and harvest rice, after which leguminous crops can be planted to preserve the fertility of the soil. An investor needs just about $400000 (just above 160 million naira) to start a standard mechanized rice farm in Nigeria, and the return of investment is about 40% (according to current market trends) – you can make more than twice your initial capital in 5 years.

    • Beans Farming

    Beans which cost almost twice the price of rice is also another lucrative option for agribusiness investors. Though it’s mostly cultivated in the northern parts of Nigeria, it can actually be grown everywhere in the country. It has a relatively short growth cycle, the only problem a farmer/investor can face is diseases, and pests that can infect this type of farm produce even after harvest.

    It returns on investment rate is very high (over 65%), and sure is something to look at considering the demanding market. A hectare produces at least 25 bags, and you wouldn’t need more than ₦100000 for all forms of cultivation practices (including pest control), now say you sell at a wholesale price of ₦27000, that’s at least ₦670000 – that’s a lot of profit if you do the maths.

    • Corn/Maize Farming

    There’s hardly a breakfast combo eaten in Nigeria that doesn’t include a derivative from maize/corn. This particular product is what one can easily term as ”the quick-money maker” in agribusiness – cultivation, harvest, and sales is so fast it can all be over in 6 months. Unlike rice or beans, you don’t spend on preservatives, the nature of products means you sell immediately after harvest.

    The key feature that warrants its inclusion in this list is obviously its high demand during its season. The only downside is the tendency to drain the fertility of any soil really fast, making you spend a lot on fertilizers yearly. However, following standard cultivation practices can generate up to 50% profit after each harvest.

    • Poultry Farming

    Since the ban on importation of poultry products (frozen chicken, and turkey), the demand for poultry products by Nigerians has shown a significant increase.

    However, the number of poultry farms in the country hasn’t been able to meet up with this increased demand, hence creating opportunities for potential farmers/investors that are interested in the poultry business. Although, the market is readily available for potential investors, it has to appear last on the list because not everyone can handle the stress accompanied with poultry farming (or livestock farming in general). Nevertheless, it’s a very lucrative agribusiness option to look at.

    Conclusion

    There are a lot of other lucrative agribusiness options that isn’t on the list above, as stated earlier, the list has been compiled based on current level of demand from Nigerians. If you are interested, or is already into any of the agribusinesses listed above, we would like you to share your thoughts in the comment section below.

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