Investment opportunities in the Agro industry #nigeria

Imagine 84 million hectares of arable land, 230 billion cubic
metres of water and very clement weather all year round.
Then imagine the same place with over N1.3 trillion of food
imports in a year, over 50 percent post-harvest waste and
40th of 56 positions on the global hunger index. This
disconnect, on one hand is cause enough for alarm and on
the other a call to opportunity.
Over the past 40 years, there have been various government
initiatives to improve the agricultural sector and some of
these include:
- 1974 - African Development Projects geared towards
increasing agricultural productivity - 1976 - Operation Feed
the Nation, sought to encourage widespread participation in
agriculture - 1980 - Green Revolution, which was aimed at
increasing food production in order to guarantee food
security - 1992 - National Agricultural Land Development
Authority, which had the aim of supporting and promoting
land development - 1993 - National Fadama Development
Project designed to promote simple low cost irrigation
technology for farming - 2003 - Roots and Tuber Extension
Programme aimed at increasing the production of staple
foods such as yam, cassava and potatoes - 2011 -
Agricultural Transformation Agenda which is currently
aimed at increasing self-sufficiency by promoting
agricultural production
Despite the widely acknowledged shortcomings of some of
these initiatives, the agricultural sector remains full of
potential and its value-chain brimming with opportunity.
The preponderance of opportunities suggests that
agriculture is pivotal to solving issues of unemployment,
food shortage and poverty that abound in the country. These
opportunities will be presented at each stage of the value
chain, with the hope that this knowledge will increase
interest in the sector and spur further activities towards
wealth creation.
Pre-production Site preparation: This includes land
clearing, land preparation and land development. It is the
most important stage in agricultural production as it affects
the productivity and yield from farms. There are very few
companies currently engaged in providing site preparation
services and many farmers are not skilled with good site
preparation techniques. As such, individuals and
corporations can provide land development services or
consultation on land development techniques.
Seed production and distribution: The availability of arable
land and diverse climatic conditions across the country
present good opportunities for seed production. According
to the Agricultural Transformation Agenda Mid-term Report
2013, Scorecard (ATA Scorecard), only five of the 71
registered seed companies in Nigeria are operational. There
is a significant gap between the demand and supply of high
quality seeds for production. As such, one can start new
high-quality seed production companies, invest in existing
seed production companies or buy one of the defunct seed
companies to transform it.
Fertilizer production and distribution: Fertilizer is an
important component in crop production. According to the
ATA Score-card, only one in four registered fertilizer
companies in Nigeria is operational. Inputs for fertilizer
production are readily available in the country. As such,
there are opportunities to invest in a fertilizer blending plant
or provide venture capital for one of the new fertilizer start-
ups in the country. The fertilizer market is currently
dominated by inorganic chemical based fertilizers which are
not all together beneficial in the long-term. One can invest
in the production of organic fertilizers as well as the
wholesale trading and distribution of fertilizers in the
country.
Machinery and equipment: Majority of the farm implements
used in Nigeria are imported. There is an urgent emphasis
on increasing productivity by adopting modern farming
practices and mechanizing farm operations. One can
manufacture equipment locally or import and sell farming
implements. Individuals can also provide maintenance and
repair services for such implements, to commercial
agricultural producers and farmers.