Agriculture in Nigeria: A win-win profitable business to invest

Agriculture in Nigeria: A win-win profitable business to invest

Agriculture in Nigeria is one of the good business to invest in the country; in fact there are lots of business opportunities in agriculture sector for you. To begin with, it provide a great source of income to many today; as a matter of fact, many entrepreneurs are now taking this farming business to a different level.

Truly, Agricultural business in Nigeria is one of the most profitable business of all time. But it is also a business that require good knowledge and understanding before you commit huge investment into it.

Although as a topic, agriculture is vast; nevertheless, I will give you basic information on all you need to know in order to run a profitable agricultural or farming business in Nigeria. Not only will I take you through the profitable agriculture products, but also talk about various income streams and market value of the products.



Meaning, you can make your choice on the types of Agriculture in Nigeria you can profit from. Regardless of what information you are looking for, this piece of write-up will give you relevant information on Nigeria agriculture facts, business opportunities in agriculture sector and many more.

This article will focus mainly on:

  • Agriculture in Nigeria;
  • Agricultural Products;
  • Types of Agriculture in Nigeria;
  • Farming in Nigeria; and
  • List of Most Profitable Farming Business in Nigeria includes.

At the bottom of the article, I have a video about agriculture in Nigeria that will inspire you. The video actually revealed why agriculture is one of the best business opportunities in Nigeria and fastest ways to make money in Nigeria.

Without too much ado, let us look into each one of them in more details.

Agriculture in Nigeria

In general, agriculture can be defined as the science or practice of farming which includes cultivation and breeding of plants and animals for food, medicine and many more.

With Nigeria blessed with fertile farmland and natural resources such as sunlight, water and good vegetation, good agricultural business is just something that you need to consider. Not only is the country blessed with all mentioned, but also blessed with a large landmass available to be use for farming.

Just for the record, Nigeria landmass is 923,768 kmĀ²; with over 70% available for agricultural use.

Types of Agriculture in Nigeria

The two major types of agriculture we have in Nigeria are the – (1) Subsistence Agriculture; and (2) Commercial Agriculture.

Subsistence Agriculture:

It is a small scale type of farming whereby the farmer grow food or rear animals for self sustenance. That is to say, the farmers grow those food for themselves and family to consume.

Although, excess food produced with this type of agriculture is sold by the farmer, the main aim of practicing this type of agriculture in Nigeria is for the farmer to produce food for his or her family.


Commercial Agriculture:

Commercial Agriculture also known as Industrialized Agriculture as the name suggest is a king of agriculture in Nigeria whereby a farm is set aside to the sole purpose of producing crops and rearing animals. This setup is mainly for business purposes; in other words, these crops and animals are on the farm are to be sold for profit.

Agricultural Products

Generally speaking, there are different agricultural products in Nigeria under two main groups; these are crop products for exportation and for home consumption. The exportation of these crops have also contributed to the growth of Nigeria economy immensely. In fact, Agriculture, forestry and fishing has an impressive incremental growth together of 46.71% as at the end of the Q3 in 2017. The figure below on the Nigeria Agricultural sector contribution to the national GDP was captured from the National Bureau of Statistics.

Nigeria Agricultural Products, GDP on Nigeria Agriculture, Agriculture in Nigeria

 

Business opportunities in agriculture sector in Nigeria are in:

  1. Cocoa;
  2. Palm Kernel;
  3. Ginger;
  4. Sesame Seeds;
  5. Garlic;
  6. Shrimps;
  7. Cashew;
  8. Yam Tubers;
  9. Textile;
  10. Charcoal;
  11. Rice; and
  12. Cassava

Let us take them one after the other as we move one to the list of top agricultural products in the country.

List of Top Agricultural Products in Nigeria for Exportation

Below are the top agricultural products in Nigeria for your consideration when looking to start exportation business.

1. Cocoa

Agricultural Products in Nigeria, Top Agricultural Products, Nigeria Agriculture Business

Cocoa Seeds, Agriculture in Nigeria

Cocoa production is a vital part of Nigeria economy. Cocoa farming produce are top agricultural export of the country and according to Statista.com, Nigeria is the sixth world largest cocoa beans producing nation. Furthermore, when it comes to Cocoa Production Statistics, West Africa countries – Ivory Coast (Largest Cocoa Producing nation in the world, Ghana, Cameroon, Nigeria and Togo collectively supplies two-third of the world’s cocoa crops.

Nigeria produce over 385,000 metric tonnes of cocoa per annum; and with the International Cocoa Organization price (at the time of publication)staying at $1,916.34/tonne, Nigeria cocoa production is worth approximately $738M per year.

2. Palm Kernel

 

Agricultural Products in Nigeria, Palm Kernel, Palm Kernel Seed, Palm Kernel Uses

Palm Kernel is one of the top agricultural product in Nigeria that has many benefits; In fact, it is a the edible fruit of the oil palm fruit.

The seed has two good oil produce: Palm Oil (the outer part produce) and Palm Kernel Oil (the kernel part produce).

Apart from the seeds’ oil produce mentioned, it also use for making Palm Kernel Cakes. These end product is high-fibre protein feed for diary cattle. Not only is the palm kernel cake good as high-fibre protein feeds, but also good for generating electricity for small villages when burnt in boilers.

Important facts about Palm Kernel business:

1. Demand of the product is high;

2. There are short fall in the product supply;

With Palm Kernel, business opportunities are unlimited.

3. Ginger

Surprisingly, ginger is one of the most popular spice of agricultural product to trade in the world; not only used as an ingredient in cooking, but also for its health benefits.

In spite of Ginger being part of the Zingiberaceae family, alongside cardamom and turmeric, Medical News Today list part of Ginger health benefits; they include relieving nausea, loss of appetite, motion sickness, and pain. The root or underground stem (rhizome) of the ginger plant can be consumed fresh, powdered, dried as a spice, in oil form, or as juice.

4. Sesame Seeds

The most recent article on what Nigeria can make on Sesame seeds exportation is estimated to be at around $4.69bn according to – sunnewsonline.com/nigerias-sesame-seeds-export-can-earn-4-69bn.

Sesame Seeds, Sesame Seed in Nigeria, Agricultural in Nigeria

As shown above, this is good for the country’s economy when it comes to agriculture in Nigeria but is it good for you?

Yes, it is good for you as a business person because of its high demand both within the country and outside the country. Another key point, farmers producing the products are limited; making it a good business to start up.

Globally, Myanmar – a sovereign state in Southeast Asia is the largest producer of the Sesame Seeds product Nigeria stands as the seventh largest producer in Africa.

Most compelling evidence shows that this agricultural product strive well in the northern part of Nigeria and some parts of the western Nigeria states. As a matter of fact, the northern states of Jigawa, Taraba, Nassarawa and Benue are the largest produces in the country.

Up to the present time, the price of sesame seeds has been going up; in fact, the market rate at the time of releasing this article is about N300,000.00/tonne.

5. Garlic

In general, garlic belongs to the family of onions and it has great health benefits such as lowering blood pressure and prevention of heart failure.

Due to high demand of this agricultural product, you are sure of making good cash from the exportation of garlic; this is an investment opportunity for individuals in the country.

Statistics on garlic exportation as a profitable business in Nigeria
  1. United State of America is the largest importer of fresh garlic;
  2. Garlic used for medicinal purpose is in high demand all around the world;
  3. The price of garlic range from N170,000.00 to N220,000.00/MT; and
  4. Starting a garlic production business does not require large amount of capital; in other words, it has low entry barrier.

6. Shrimps

Shrimp in Nigeria, Shrimps Production in Nigeria, Agriculture in Nigeria

Shrimps, a kind of seafood farming agriculture in Nigeria is gaining traction in the international world. In fact, Shrimps (a family of the frozen food) has an export value of over N4.77billion; representing around 22.23 percent of the total agricultural export from the country last year according to a Nigeria News website – Independent News.

The global market is massive; for this reason, there is high demand for the product.

Presently, the amount of shrimps exported out of Nigeria stand at around 12,000 Metric Tonnes annually. This is very small compared to what the country can produce. In addition to that, the sector is experiencing tremendous growth.

Of course shrimp is part of the general aquaculture in Nigeria, but its exportation amount to over N3.39bn according to the Nigeria National Bureau of Statistics on major traded agricultural products.

7. Cashew

Presently, cashew as an agricultural product in Nigeria has seen a significant increase in price and production. As a matter of fact, the National Cashew Association of Nigeria recently announce an increase of over 43% in production over a six years period.

In addition, the association pointed out that the market value has an incremental value of over 83%; that is to say, it has increase from $300.00 per tonne to $1,800.00 per tonne for the six years under review.

What does this mean?

It simply mean that there is more opportunities for cashew farmers. Not only that, but also more money to be made in the cultivation and selling of the agricultural product.


8. Yam Tubers

When it comes to agriculture in Nigeria with its produce, yam tuber is one of the products Nigeria is good at producing. As a matter of fact, Nigeria is the largest producer of yam in the whole world. The country produce over 60% of yam consume worldwide.

Yam Production in Nigeria, Yam tuber in Nigeria, Top yam producing nations

As shown above, Nigeria produce an average of 40.5 million metric tonnes of yam each year; equivalent to over $6.05 billion in value. This makes Nigeria the top yam producing nation ahead of Ghana and other African countries.

9. Textile

The Nigeria textile industry is presently experiencing dramatic changes. These changes came about when the Federal Government injected around N100 billion.

Because of the revenue potential in the industry, the industry is mainly dominated by foreigners; although, we have various other players, investors and partnerships in the industry.

As things stand today, Nigeria is not a major textile exporting country but there are rooms for the country to make an impact. With the total dollar value of the textile export topping over $284 billion, there is an opportunity to make some cool cash in the industry.

10. Charcoal

Truly, Nigeria is still not a major player in the global charcoal industry market; but the country has the potential to be a dominant player in the industry. Currently exporting over 380,000 metric tonnes of the product annually with the market value of $3.2 million, the country only has 0.3% of the global market.

Not impressive.

There is good news!

Charcoal produced in the country is highly preferred by the western world. Why is this?

Simply because of the fact that the country is rich in tropical hardwood used in the production of charcoal; In addition, charcoal produced in Nigeria are of high quality, burn slower, easy to light and are hotter.

On the positive side, this is a good business opportunity for Charcoal exporters in Nigeria.

11. Rice

When talking about agriculture in Nigeria, there is no way we are not going to talk about rice. Not only is it a popular agricultural consumption product, but also because its local production has increased drastically.

Additionally, rice remain the second most important cereal crop of all time and it is largely produced locally.

In fact, the local rice production in the country has reached over 15 million metric tonnes per annum. Making it one of the most produced agricultural product in the country.

Although, there is a significant increase in rice consumption and its production, it is still way short of the amount required to meet domestic consumption. In other words, there is shortage of rice production in the country.

For this reason, Nigeria is still considered to be a major importer of rice in the global market.

With demand for rice not meeting its supply, there are opportunities for individuals looking to start rice production business in Nigeria.

Importers of Nigeria rice

The global rice production statistics shows that the following five counties are major importer of Nigeria rice:

  1. United State of America;
  2. Vietnam;
  3. India;
  4. Thailand; and
  5. Brazil.

Presently, Nigeria is Africa’s leading consumer of rice and at the same time, one of the largest produce of rice in the continent; making rice production a lucrative business you can look to invest in.

12. Cassava

What makes cassava production important when it comes to agriculture in Nigeria?

Simply because it is vital to the economy of Nigeria.

Indeed, cassava another important product of the Nigeria agricultural industry. As a matter of fact, Nigeria is the world largest producer of cassava with an estimated 50 million metric tonnes produced annually.

Recent statistics shows the dollar value of cassava exportation from Nigeria will reach $5 billion annually. This is a significant figure that is important to Nigeria economy.

In addition, the figure on cassava production also indicates that Nigeria produce about 20% of the global output.

Nigeria Agriculture facts and products to export

As can be seen, the above information about the Nigeria agriculture are facts that can not be ignored.

The fact remain that Nigeria is bless and the country can produce more than enough of the mentioned product for local consumption and exportation. In fact, the above made up of 95% of export products from the country.

If you are looking to start exportation business, make sure you do your due diligence on the above; as a matter of fact, check out the top export products from Nigeria.

Conclusion

As shown above, agriculture in Nigeria is vital to the country’s economy.; in addition to that, it provide greatĀ business opportunities in agriculture sector for anyone looking to venture into it. Looking at the twelve of the top agricultural products in Nigeria, we can see that there are great potential for for us all to profit from. Starting an agricultural exportation business is viable and does not require much capital.

In fact, there are various government and private organizations that will help start-ups when it comes to starting up an agricultural business in the country.

The video below explain more.

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