Nigeria is blessed with land suitable for growing crops, which makes agriculture an important sector of the economy. The agriculture sector also has a high potential for profits. Although in Nigeria, the sector has been largely dominated by subsistence farming. However, with the introduction of modern technologies such as improved seedlings and other modern farming methods, the agricultural sector has experienced growth and is a good place to invest in.
How to Invest in Agriculture in Nigeria
Are you thinking of investing in agriculture in Nigeria and are not sure how to? This article will provide you with information that will guide you on how to make wise decisions regarding investments in Agriculture in Nigeria.
Investing in Agriculture is risky just like many other investments out there. However, for a sector that has to do with living things; plants, animals, etc., the agricultural sector has its own peculiar risks. Investment in agriculture is a risk but it is highly lucrative.
However, in this day and time, investing in agriculture is not as scary as it used to be. What with the crude nature of farming prevalent some years ago, lack of information and data, etc., farming used to hold lesser returns on investments than it does now.
Nowadays, there are a lot of digital agriculture investment platforms. These digital platforms include agro-crowd funds. With crowd farming, one entity owns the land, and the farmer who has the farming skills continues to farm, and others invest in the production.
Now, you can invest in agriculture from the comfort of your home. These platforms allow you to be just as involved in farming. It is important you are sure which Ago- crowdfund to invest in. So if you’re thinking of investing in agro crowdfunds, here’s what you should know about the digital agro crowdfunds in Nigeria:
Interest and knowledge: Firstly, before you engage in agriculture not only as a farmer who is directly involved but more so as an investor, you need to stock up on some knowledge about the area of agriculture you want to invest in. It is even better to choose an area you are interested in. This will help you be more involved in the business which makes you more aware of the happenings in the sector.
The agriculture sector is open to private participation and investment opportunities across various categorizations. Some of the areas which crowdfund invest in includes:
- Mechanized crop production such as rice, maize, millet, cassava, sugar cane, tomato, and cash crops such as cocoa, palm kernel, rubber, etc.
- Food processing and preservation.
- Beef processing and packaging.
- Fruit juice/canned fruits.
- Beverages and confectionery.
- Cash crop processing – cocoa, palm kernel, rubber, etc.
- Exploitation of timber and wood processing activities to be driven to the piers by highly recommended log trailers in order to export the final products
- Livestock cultivation – dairy and aquaculture (fisheries) development.
How to know the right digital platform to invest in:
- Be sure to know if the crowdfund or their parent company is registered with the Corporate Affairs Commission: You must avoid doing business with any company that is not registered. You can do verify by visiting the Corporate Affairs Commission website.
- Check to be sure whether the farms of the platform are insured by an Insurance Company. It is important an agriculture investment platform is insured in case of losses and especially because of the kind of business this is. You can also request for your farm insurance documents.
- Read about the founder(s) of the company. Finding out tiny bits about their backgrounds, qualifications, etc. can help you be more confident about the investment plan.
- Verify the business office address. If possible, pay them a visit.
- Insist on signing an official agreement with them.
- Read through the lines to understand their terms and conditions or disclaimers. Do not assume things.
- It is essential you read online reviews about the digital agriculture investment platform you want to invest in. Ask questions about them.
- Find out all you can about the potential market for the products the crowd fund will be investing your money in before attaching your investments
- Find out about the presence of major competitors in your area.
How to know the best investment platforms
- Don’t be quick to embrace mouth-watering offers that are too good to be true. Don’t go for high or crazy Return on Investments or Low return on Investments either. ROI’s that are modest and fair is just fine.
- Find out if they actually farm with your money or not.
- Visit the farm as often as you can. Don’t underestimate the importance of visiting the farm yourself.
- Subscribe to platforms where you can keep pace with issues such as prices, demands etc.
- Ask questions to those involved in the farming business. You could find the truth.
- Do not accept any other bank account that is not bearing the name of the company except if it is spelt out that the name on the account owns the company you are involved in and other documents.
- Ask if they have Commodity off-takers who will buy the farm produce directly from them: It is always best if a farming company sells directly to off-takers who buy the farm produce at good prices without involving middlemen. This makes for higher profits and less risks.
What type of crowdfunding to invest your money in
- Investment in crop production is risky but rewarding. Different crowd funds offer differing terms and conditions. If you find an agricultural investment platform that can assure you of your capital no matter the farming outcome, do embrace them.
- Invest in crowdfunds that buy farm produce during harvest and sell when the prices are high. This is more rewarding and stable.
The Best Livestock to Farm:
If you are interested in Livestock farming in Nigeria, check out for crowdfunds that invests in the following livestock that has high market value:
- Chicken
- Turkey
- Catfish
- Pig
Best Crops to Farm: If you are interested in investing in crop produces. Below are crops often in high demand:
Food crops such as:
- Cassava
- Yams
- Rice
- Millet
- Maize
- Beans and Soya beans
- Sorghum
Nigerians use a lot of rice and cassava