Agric business in Nigeria is the oldest and one of the most lucrative businesses anyone can start whether young or old, student or graduate and even educated or not.
Going back to the root, in the early days farming was the major source of income in Nigeria, as almost every household had farming land either for income or as a source of food.
These days, the introduction of machines and other advanced beneficial products has made agricultural business in Nigeria very easy to start, as not much manpower is required.
This business is a good source of long-term income, as you can keep making money year in and year out no matter how bad the economy may be. This is because there’s been a constant increase in demand for agricultural products within the country and even abroad.
With that in mind, a lot of young entrepreneurs now venture into the agribusiness industry, and of course, make millions of Naira in profit every year.
That’s why we’ve curated this post for those with the mindset of starting a farming business in Nigeria. Here, you’ll learn how to start, the cost of starting, how much profit to expect, and lots more.
Without further ado, let’s get started!
About Agricultural Business in Nigeria
Agric business is simply a type of business where you grow crops mainly for sales. This business has been on the rise for years and is one of the businesses that will continue to trend since the population is increasing every day and we all need food to survive.
People into the Agriculture business in Nigeria sell their farm produce to marketers and even manufacturing companies in the country.
With the global demand for agricultural products, farmers can also make more money by exporting farm produce abroad for exchange in payment with hard currencies including dollars, pounds, and euros.
Although to engage in such trade, you’ll need to have invested hugely in your farms to get a huge return. And that leads us to the cost of starting an Agricultural business in Nigeria.
How Much Do You Need to Start Agric Business in Nigeria
Agricultural business in Nigeria is one of the few businesses that require low capital to start, and generates huge profits.
Since there are lots of Agric businesses you can venture into, the startup cost varies across every type. That is, the amount needed to start for instance a cassava farming business may differ from the cost of starting a fish farming or snail farming business.
However, if you’re looking to start an agric business on a small scale, you should budget at least 50,000 Naira. While on a larger scale, it may cost you up to millions of naira to start a farming business in Nigeria.
How Profitable is Farming Business in Nigeria
Although people seek how to start Agric business in Nigeria, one common question asked by aspirants is – is farming profitable in Nigeria?
Of course, Agric business is one of the businesses that surely must make you some money if done right (that is if there’s no unexpected disaster).
The profit margin of a successful agriculture business in Nigeria ranges from 50% to 200% and sometimes more. That is if you start with 50K, you can make a profit of up to 150K and more within a few months to a year depending on the type you go for.
Talking about the type of Agric business, let’s see the best types of farming business with the most profits in Nigeria. This will help in starting a profitable agri business in Nigeria.
Best Agricultural Business in Nigeria 2023
While looking to start an Agric business in Nigeria, it is ideal to go with the easiest one that will yield the most profit. The following are the best Agric businesses to consider if you’re just starting out.
Currently, the most profitable, easy to start and fastest selling Agric business in Nigeria is cassava farming. This is because about 90% of Nigerians consume cassava products every day, thereby increasing the demand for the farm produce.
Cassava farming is easy to start, although it takes a longer time before reaching the harvesting stage. Millions can be made from this business, as the demand has also reached the international level. That is, cassava is also an export product.
If you’re looking to start kind of a livestock farming aspect of Agric business, I would recommend poultry farming.
This type of farming deals with the rearing of birds such as chickens, turkeys (Tolotolo), ducks, geese, and so on for the production of meat and eggs.
Poultry farming has become popular over the years as more money is made due to the increase in population which leads to the high demand for most especially eggs. Poultry produce sells fast as they can be sold to beef processing companies, as well as food manufacturing companies.
Also, there are lots of individual buyers for chicken and eggs mainly for consumption, thereby making the business one that can be started both on a small scale (at your home) and large scale (acquiring a bigger farm).
Maize farming is another lucrative Agric business for newbies. This is because it doesn’t require advanced skills, just like cassava farming.
There have been and will continuously be markets and high demand for maize, locally for domestic consumption, by food manufacturing companies, and also internationally.
Another popular Agric business in Nigeria is fish farming. Although some parts of Nigeria are well known for fish production, with the new fish farming system, you can benefit from the business especially if you live in cities like Lagos, Port-Harcourt, Ibadan, Enugu, Ogun, and Delta state.
Fish farming, mainly catfish, are easy to breed even on a small scale in your backyard starting with just a little capital. There’s high demand for them and in high prices.
Another agricultural business that works well in Nigeria is rice farming, although it can’t be practiced in most parts of the country, as it requires swampy land for the best yield.
If you carry out a survey, I bet three out of five individuals will tell you they’ve eaten rice today, which means there is high demand for it, making it a very lucrative farming business to consider as a newbie.
Snail farming is kind of an untapped, but highly profitable Agribusiness in Nigeria, as the consumption of snails and international demand has been on an up trend in the last few years.
The cool thing about this farm business is that it can be started with a small capital, and is very easy to scale. Also, it is very profitable, as snails are very expensive in the market especially during the dry season, making snail farmers crazy profits.
As a matter of fact, you can make up to 500% ROI if you include the exportation of snails in your business strategy.
Pig farming is one of the most profitable livestock farming agribusinesses in Nigeria, as you can start with just 2 to 4 pigs and make life-changing money when they start breeding piglets.
That is many many people venture into the business. Pigs are prolific breeders that can give birth to 10 – 14 piglets at once.
Due to its nutritive value, the demand for pig meat (pork) is increasing every year, and as of now, the demand is a little higher than the supply as pig farming is not as popular as poultry and even cattle farming.
This makes the business unsaturated and one you can venture into if you want to go with livestock production.
Although Nigeria imports apples, there are other fruits that are exported and are even in high demand within the country. They include orange, pineapple, mango, cucumber, watermelon, etc.
This business is ideal for those that want to start a long-term agribusiness, as some like oranges can take years to start generating income. But when it starts, it becomes a money making machine, as you don’t need to keep cultivating lands every year, but make money every year.
Fruits are high in demand in Nigeria both by final consumers and companies. Farming fruits is easy, as well as scaling the business too.
How to Start Farming Business in Nigeria 2023
Now that you’ve known the best types of Agric business in Nigeria, just like every other business, there are some steps required to start an agribusiness. Check it out below.
1. Start with Market Research
In starting an agriculture business in Nigeria, the first thing that needs to be done is market research. This involves the best time to start an Agric business in your area, things required, where to source for workers (if required), cost of machinery, and so on.
Also, if you’re looking to start with crop farming, you need to make inquiries about the best type of crop that yields well in your area, since every geopolitical zone is known for its farm produce respectively.
For example, the northern part of Nigeria does well in the production of fruits like watermelon, while the southwestern part of the country is good for farming cassava, and maize.
2. Pick a Niche
After doing your market research, you’re most likely to come out with multiple farming business types.
Now, sit down, and take your time to draft out the best type of farming business for you based on the following factors.
- Startup capital
- Availability of the required resources
- The time it takes to start making money
- Cost of management and effort required
- And so on.
Once you draft out all that, just go with the one that best fits your criteria, then proceed to the next step.
Read Also: How to Start Cooking Gas Business in Nigeria
3. Get a Farmland
After picking a niche, the next thing on the line is getting farmland. This should be based on your budget and/or approach.
If you have a small capital and are looking to start on a small scale, depending on the type of agribusiness you want to start, for instance, if it’s poultry farming, you can just start in your backyard using a cage or spare room. However, for a small scale crop farming business, you’ll need at least half an acre of land to start with.
4. Practice Your Preferred Type of Farming
Considering that you’ve got land or space, the next thing is to start your farming business.
This step comes with a lot more responsibilities than you would imagine, as here is where you set up your poultry, fish pond, or cultivate your land. Source for chicks, fingerlings, or whatever it may be, or plant your crop.
Then, you’ll go into the management phase of the business, as you can’t just plant a seed or start a livestock farm and expect to make profits without proper management.
The management phase goes through to the harvesting stage, where you’ll need to hire workers, harvesters, and/or vehicles for transporting your farm produce to a store, market, company, or distributor for sale.
5. Look for the Best Market for Your Farm Produce
While getting closer to the harvesting stage above, you’ll need to look for where to sell your farm produce.
One of the most popular places to find buyers for your product is farmers’ markets. There you’ll find a lot of distributors ready to buy your goods at the spot for the current market value.
Also, if you started on a larger scale, for example, 50 and above acres of cassava you can reach out to small companies that use your farm produce for production and sell your goods to them. This is more profitable than selling to distributors.
If you want more profits, you can look into the exportation of your farm produce if it is high in demand in the global market.
6. Start Selling and Making Money
After sourcing customers for your farm produce, the next thing is to either take your goods to the market, ask a distributor to come and pick them up (which works best for poultry farming) or transport it to companies in exchange for payment.
Agric Business in Nigeria – FAQs
Which agricultural business is most profitable in Nigeria?
Currently in Nigeria, the most profitable agricultural business is poultry farming, as you can make money from meat, eggs, and even feathers.
What is the latest Agric business in Nigeria?
The latest Agric business in Nigeria includes rabbit farming, snail farming, wheat farming (for exportation), and grass cutter farming.
What is the crop with the highest profit per acre in Nigeria?
The crops with the highest profit per harvest in Nigeria are cassava, groundnut, and maize.
What crop is the most profitable?
The most profitable crop in Nigeria in a year is maize, as you can plant and harvest maize up to 3 times a year with a profit of up to 100% margin per harvest.
Agribusiness in Nigeria is undoubtedly one of the easiest business sectors anyone can venture into. This is because it requires small capital, which could yield up to 5X in 12 months.
If you’re looking to start, I believe this post about how to start an agricultural business in Nigeria will help you a lot, if followed step by step.