7 reasons why you need to start investing in agro-business in Nigeria now

“Oil and gas has served Nigeria well. We did not manage the resources well. We can’t blame oil and gas. Now the pressure is on agriculture. How we are going to make it work to ensure yield and harvest is a burden all of us will carry together “We are going to face very serious challenges. We have to earn foreign exchange to replace oil. The demand out there is very high if we can produce the right quantity and quality.
“We have to intensify research, marketing of food. We have to deal with reducing the import burden of food of almost $32bn a year. I don’t know how somebody can explain importing bananas to the country or Irish potatoes from South Africa or vegetables from South Africa into our shores” Mr. Audu Ogbeh, Minister for agriculture.

On our previous post 7 hot agro-business you can invest, we were able to show you a comprehensive list of agro-businesses you can invest in and make fortune. The statistics are there to prove these businesses are lucrative and can make any business person rich given the right investment and execution. On this post we look at some points why you need to invest in agro-business in Nigeria.
Lets get right to it:

#1. Government mean business and there are results already

We’ve always known the Nigerian Government to mean good. However, sadly they set up plans and promises and don’t get to complete them. Nigerians have been hurt by these and carry the scars with them. The implication is they get judgmental and critical about whatever projects Government embarked on. The people’s disbelief in the government is understandable, but maybe its time to start looking at the results now as things are changing especially in the agriculture sector. The previous Nigerian government set up the Agricultural Transformation Agenda in 2011 (ATA), wooing investors in the Agricultural sector. The focus of this was to reduce Nigeria’€™s expenditure on food imports (totaling over $11 billion) and instead raise agricultural productivity and value-addition. This decision was borne out of the decision to refocus the sector on private sector engagement and end decades of government domination. In the space of three years, Nigeria expects to become a net exporter of fertilizers with about $5 billion of new investments in fertilizer manufacturing are ongoing by Dangote, Indorama and Notore amongst others. Nigeria will be on global exhibition. Another result is the new rice self sufficiency policy which will directly save Nigeria $2.5 billion annually. The government has also embarked on free distribution of high yielding rice varieties, provision of fertilizers and mechanized services, supported by small scale irrigation, rice production has been on the increase, reports claiming the number of integrated modern rice mills in the country rose from 5 to 15 within two years, all processing the local paddy into high quality finished rice.
Early investors in this sector would reap higher reward on the long run as evidenced by the 40% ROI in the rice mill business.

#2. Nigeria has no choice but to give attention to other sources of wealth to sustain economy

One can relate Nigeria’s economy situation to one who his ‘back is against the wall’ and needs to act or be consumed. Although it must be said that The whole world have gone through rough patch this year, its not only being Nigeria. non the less, it is good to know Nigeria is rising to the occasion. Nigeria’s dependence on oil over the years have seen it suffer other sectors of the economy but with oil price dwindling, she has no choice but look inward and share this concentration on other aspects of the economy. Boosting Nigeria’s economy through Agriculture is one way out of this mess and thankfully, results are already showing for themselves. For Nigeria to have a sustainable economy, it needs to diversify its economy. It lays in the shoulder of every business person(however small) to establish themselves in line of this revolution and make good money.

#3. Agricultural produce export activities would start improving

If the statement of the Minister for Agriculture in Nigeria tells you anything it would be there’s the urgent need to start producing locally so as not to implode in the economy in the nearest future and alas! there’s so much demand for what we have, lets start producing “…The demand out there is very high if we can produce the right quantity and quality.” The National Cashew Association of Nigeria (NCAN), gives a nod to this, noting that Nigeria will generate a turnover of about ‎N1 trillion in the next 10 years given the right support.

#4. Government policy becoming favorable for indigenous businesses

The present government have stressed the importance of looking within and have also carried on with legacy of previous government in agricultural sector. In the coming years, Nigeria would be a major exporter of rice eradicating its sole dependence of imported rice. This step further empowers local business people to produce more knowing they would get patronage for their produce.

#5. Nigeria is blessed with necessary resources for agriculture

We have necessary resources to succeed in the agricultural sector. Over 84 million hectares of arable land,favorable weather, man power, with over half of the population in Nigeria within the age of 0-35years. The young population are learned and agile and can produce more compared to the older generation. Of course with there’s the wrong notion of the young people not fancying agriculture, the compensation and reward would more than enough to convince them to go into agriculture. Fear has been getting customers for produce, With web platforms like cokodeal.com via which locally produce goods are promoted to new and larger markets, this fear has been long gone. Just by creating an online store, business people and agro-preneurs can promote their produce to thousands of customers, far beyond their reach at a very negligible cost compared to traditional medium of promoting business.

#6. There is ready market for products

Nigeria is one of the most enticing markets for business people. Consumer products thrive in the Nigerian markets, that’s why countries like China would do anything to remain in our markets. With government becoming serious about their plans and execution, perhaps its time to plunge in. We eat food everyday, drink water, need shelter and clothing. Most of these things can be produced in the Nigeria and there are customers ready to buy. platforms like cokodeal online marketplace makes it even easier to get customers from new larger and new markets- Africa and the global world. A real business opportunity lies in the satisfying the increasing demand of Nigerian products from countries in Europe, and neighbouring African countries.

#7. There is technology to promote what you produce

It is sad how unrewarding Agro business has been to the small-scale farm-holders. Perhaps here lies the reason why most young men would prefer to stick their neck for the ‘white collar’ jobs which are fast becoming a mirage in a world where jobs are as scarce as gold. If people identify non-profitability as the reason for not venturing into agro business then they should rethink now that there are enough technological solutions on ground to help foster profitability and growth. When you look at what cokodeal has done for local manufacturers, you can see how technology can drive profitability for the agro business. By Providing online marketplace to promote locally manufactured goods to emerging new markets. Business people can promote their agro products through the platform and reach thousands of people across the world. The rising demand for Nigerian products outside the shores of the country are mostly driven by the Nigerians and Africans living in those places. These people would find it easier with cokodeal to source local producers in Nigeria and place orders.

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