Agriculture is one of the major sources of foreign exchange in Nigeria so investing in agriculture will make you an earner of foreign currency in Nigeria.
Before now, Nigeria’s major source of income was from agriculture, but over the years it has shifted to crude oil which has become the major source of income for the country.
Nigeria is one of the most blessed countries in West Africa with arable land for cultivation. These natural resources from God have made Nigeria the best country you can invest in the agricultural system and you will be assured of having a good return on your investments.
However, if you have a capital and you are looking for how to invest in agriculture in Nigeria, then you have found yourself in the right place as this blog is going to provide you with all the detailed information you need on how to invest in agriculture in Nigeria.
How To Invest In Agriculture In Nigeria
There are many ways by which one can invest in Agriculture in Nigeria. Each of the means has its own risk and you need to consider these risks before choosing the investment you want to do.
So the list of possible ways you can invest in agriculture in Nigeria are:
- Buying and Exporting of Cash Crops
- Investing in Agriculture Equipment
- Farming of Local Products
- Partnering with Big Agriculture firm
- Buying and Exporting of Cash Crops
1. Buying and Exporting of Cash Crops
Cash crops are crops cultivated only for exportation. These crops have high international market demands because most of the cash crops serve as raw materials for most of the finished products used in Nigeria and outside Nigeria.
Investing in cash crop production can be a very good investment because it has relatively low risks attached to it. You can invest in cash crops by cultivating them cash crops or buying them cash crops from any of the local markets close to you. Then after buying this product, you can sell it in bulk in the foreign market which will guarantee you a good return on your investment.
The list of cash crops that have high market demands internationally and are locally farmed in Nigeria are:
- Cocoa
- Cotton
- Rubber plants
- Cashew Nuts
All these mentioned cash crops above have high market demands and it is a good way to invest in them.
2. Investing in Agricultural Equipment
Over the years, agricultural mechanization has opened doors for farmer to scare up their production. However, due to the high cost of affording this equipment, most farmers in Nigeria don’t have access to these tools.
However, you can create an investment opportunity by purchasing this type of agricultural equipment and then renting it out for farmers who can’t afford to buy one.
You can buy equipment like tractors, ridgers, ploughs, planters, and other mechanical tools and start earning money anytime any farm rents it to use it on their farm.
So investing in agricultural equipment is another way one can invest in agriculture in Nigeria.
3. Farming of Local Products
Local products are farm products that are majorly consumed within the location of production. This type of farm product is not meant for exportation.
There is a great investment opportunity in farming this local product on a large scale and then selling it immediately due for harvesting.
These have some risks attached to it but once you can overcome all the potential risks, you will get a good return on your investment.
Local products that you can farm are rice, beans, yam, etc.
4. Partnering with Big Agriculture firms
Another way that you can invest in agriculture in Nigeria is by partnering with established agricultural firms operating in Nigeria. You can partner with them by buying a share with a company or providing them with financial support like borrowing your money with an interest attached to it.
This is considered safest because the security of your funds is sure and you don’t get to involve yourself in the daily activities of running the firm.
So the above listed ways are the possible ways by which you can invest in agriculture in Nigeria.
Conclusion
Agriculture is one of the booming sectors in Nigeria. Investing in agriculture although comes with a risk is one of the surest ways by which you can easily make a good return on your capital. You can choose from the investment opportunities that are mentioned in the blog post. Don’t forget to do further research as this is not financial advice.
