How To Invest In Agriculture In Nigeria: Your Complete Guide
To invest in agriculture in Nigeria is one of the greatest investments you can have at this point in time. The agribusiness sector is a multi-billion dollar industry that really demands your attention. If you are still seeing agribusiness investment in Nigeria as a poor man’s business, then you are really poor. When you understand that food is the primary source of sustenance to any population, you will appreciate agricultural investments.
Just because agribusiness investment is very profitable and lucrative does not mean that farmers don’t lose money. There are certain things that you need to know before you invest in agriculture in Nigeria. That you have the money is not just enough, there are other parameters to consider as well. This article provides you with the needed information on things to consider before you invest in agriculture, especially in Nigeria.
This article will open your eyes to the following:
- Agric investments in Nigeria
- The business opportunities in the agriculture sector
- Agriculture in Nigeria today
- The agriculture investment opportunities
The good thing about investing in agriculture is that there is always room for investment. In order to invest in agriculture and be successful, there are important guidelines that you must follow. It is simply not enough to just select a particular agribusiness niche in Nigeria. You must have to make sure that certain things are in place as well. Agric investments in Nigeria is not what you should allow to pass you by, you really need to be part of it.
Important Guidelines Before You Invest In Agriculture
Your interest and experience matters
No matter the agriculture investment opportunities you want to venture into, your interest and experience matter a lot. The reason your interest is very important is that it will be the thing to keep you going during the tough times in business. If you lack interest in the agribusiness investment you have, chances are that you won’t be successful in the end. When you invest in agriculture and that is where your interest lies, you will always put in your best no matter what.
It is your interest that will make you develop the skill and acquire the necessary education to excel in your agribusiness investment niche. Thus, before you invest in agriculture in Nigeria, there is a need for you to empower yourself with information. The important thing is for you to be properly grounded in a particular agribusiness investment niche in Nigeria. You should invest in agriculture when you understand that particular area.
The agriculture investment opportunities in Nigeria are numerous; you must keep you cool and invest in the niche you understand. When you invest in agriculture, your experience along the line matters a lot.
Take note of the season
For you to invest in agriculture and be successful, it is important that it is done at the right time. Planting your crops and/or breeding your farm animals can only be successful when it is done in the right season. For instance, if you invest in rice farming in the dry season it will certainly cost you more money. This automatically reduces your profit potential, thus negatively affecting your chance of success.
Therefore, to invest in agriculture in Nigeria you need to be careful of the season in order to maximize your profit potential.
Before you invest in agriculture, you should be sure of the market. It will be a colossal waste of money if you invest in agriculture only to meet with poor sales. As a potential agribusiness investor in Nigeria, you need to understand the market before investing your hard earned money. What this means is that you should investigate the farm produce in high demand in your locality before deciding o investing.
Your financial capacity
This is another important consideration before you invest in agriculture in Nigeria. Even with the right season, vibrant market, and great interest; you cannot invest in agriculture without startup capital. It will be very disastrous for you to initiate an investment that you can’t see to the end. So, you can always start small and gradually expand your agribusiness investment to a commercial scale in Nigeria.
As an agribusiness investor, you need to be very careful about the location you use for your farming activities. Try to avoid locations that are susceptible to natural disasters like flood, drought, etc that may destroy your crops. You don’t just select farmland for your agribusiness investment; know the potential negative natural factors affecting such places.
If you don’t put this into consideration, the business opportunities in the agriculture sector will be for nothing. Without proper knowledge, you can lose millions of Naira due to these unfriendly natural factors.
Be mindful of environmental laws
This is another very important consideration before you invest in agriculture in Nigeria. You should understand the environmental laws governing your area when it comes to agribusiness investment. It is very important that you avoid locating your farm where the government can shut is down. Avoid setting up your poultry or pig farm near residential areas as you might constitute a nuisance in the neighborhood.
The land is very important to agriculture and you must make sure you have it all settled before investing your money. The larger the land available to you the better as you can combine both animal and crop production business. Before you invest in agriculture, make sure that there is already an available land for that purpose.
There are certain agricultural investments that you will need hectares of land and not just a plot. If you are considering palm tree plantation agribusiness investment, a plot of land won’t be enough. Therefore, land availability is very crucial to your investment in agriculture.
Availability capable manpower
Before you invest in agriculture, especially on the commercial scale, you need to be sure that there are capable hands to handle your business. There are lots of agribusiness investors that have gone bankrupt due to the lack of capable hands to handle their agribusiness investment. There are certain agricultural businesses that you need trustworthy people to manage it for you before you can invest in them. You need to be careful of the kind of employees you engage in your farming business investment in Nigeria.
Avoid too much risk
Although there is no business venture without a level of risk, you shouldn’t just jump into risky investments. If you want to invest in agriculture, there is a need for you to start small and then expand. There are certain Agric investments in Nigeria that comes with lots of risks. For example, poultry and fishery farming businesses require that you start gradually while applying all necessary precautions.
Believe you can be successful in your agribusiness investment
It is very important that you believe in your ability to succeed in your chosen agriculture investment in Nigeria. When you invest in agriculture, have the mentality that you will be successful in the agribusiness venture. You don’t have to be scared to invest in agriculture; it is still very profitable and lucrative. Countries around the world spend billions of Dollars importing agricultural produce, so the market is still very large and promising.
To invest in agriculture might be your best investment ever if you adhere to the above-listed guidelines.
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