How to Invest in Agriculture in Nigeria
When talking about lucrative businesses in Nigeria, one of the first that should come to mind is Agriculture. It is an industry fully immersed in lucrative returns, and it is highly progressive, especially when you do it right. With the right approach and tools, plus training in agriculture, you will soon start to compete with Dangote. Yes, it is possible with the right investment and knowledge of the market. Seeing that there is a pronounced national effort targeted towards agricultural focus. It is only right to understand how to invest in agriculture in Nigeria.
The appalling fact is that the Nigerian public sector is the one that has maintained a focus on the agricultural industry. However, individual citizens are now grasping what it means to invest in agriculture. This is because they now understand the potential embedded in the agricultural industry.
Hence, if you are a Nigerian and looking to invest in agriculture, there is no need to sweat further. We will give all the details you need to be a successful agricultural investor.
You might wonder how investing in agriculture is the way forward in Nigeria due to the nation’s focus on crude oil. Worry not because people will feed, wear clothes, and eat meat. Agriculture also backbone some manufacturing companies. Hence, this translates to a vast opportunity for investment.
Below is some essential information to help you make the right agricultural investment decision in Nigeria.
How to Know the Right Investment Platform
- Corporate Affairs Commission (CAC) Registration: you must always check to ensure that the investment company you intend to choose has been registered and verified by the CAC.
- You must always ensure that they have their farms insured with a reputable insurance company. The most reputable agricultural insurance firm in Nigeria is Leadway Assurance Company.
- It is important to know about the founders of the investment firm to know their track records. Be sure to read as much as you can about them to guide against the case of fraud.
- You should get their office address online and make sure to verify the availability before putting your money on the investment. If you are fortunate to live close to the office, be sure to visit.
- Make sure there is a written agreement with the organization before proceeding.
- It will be in your interest to get one of the directors to show you a valid identification and background info about them.
- Carefully read through the terms and conditions to clearly understand what you want to do. People do not clearly understand the terms and conditions stated in most cases. Therefore, you should employ a lawyer that will break it down to your understanding.
- Finally, search for online reviews about the organization before investment. One of the best places to get a genuine review is Nairaland.
Best Tips on How to Invest in Agriculture in Nigeria
Understand the Process
You can choose to invest your money or land in another farmland. Whatever the case is, it is certain that there will be a process of animal farming or the production of cash crops. Therefore, you need to get a grip on how to go about your investment.
It would be best to understand that everything that comes out of the farm goes into a sale, and the profit is your return on investment. You should also know that it is highly difficult to run agricultural processes, and it requires a lot of money and human power. Therefore, your investment money will be used to make purchases where needed for better results and output. Additionally, it will be used to hire personnel to make the process faster.
Have Your Investment Capital Ready
Farming is capital intensive, as mentioned above. You need to have your investment capital available as this will help the farmer make more money for you. See your investment as the propeller for the farmer’s production. Therefore, it should be durable and must serve to generate wealth.
Choose the Type of Agricultural Process you want to invest on
There are many types of farming. It ranges from animal rearing to crop planting, crop processing, and many more. You can always invest in as many as you can if you have the funds. However, if you do not have the funds, you can choose one or two types of farming to put your investment on. Doing this will make it easier to monitor your investment correctly and without hassle. The most lucrative investments are in cash crops like cassava, maize, and rice farming. These cash crops come with massive gain, and it is continuous.
However, placing your investment in various farming can also have its advantage in that when one flops, the other will back it up. The downside to this is the lack of proper monitoring. Therefore, you must choose wisely and be sure to make informed decisions.
Choose which Agricultural Company you want to Invest with
There are various agricultural investment platforms in Nigeria, and you have to be careful when choosing. While choosing, be sure you don’t jump on High investment returns, the same as low returns. The best to go for is the averagely promised returns, as it comes with more investment security.
Furthermore, be sure that you create time to visit the farm once in a while. Doing this will help you keep a proper record of proceeds. Additionally, if the bank account they are giving you is not carrying the bank name, be sure to refuse it.
The above will help you know which investment platform is right for you. Also, you will have rest of mind after choosing the best platform for yourself.
How to Invest in Agriculture in Nigeria has been made easy for you by www.farmpack.ng. First, we have been able to push this article out to give you a basic understanding. Secondly, we have a reputation for providing safe and secure investment over the years. Finally, we hope this article has given you a great insight into agricultural investment in Nigeria. Happy Investment.