AGRIBUSINESS INVESTMENT

OPPORTUNITIES IN NIGERIA

A presentation by
Ms.Ajuma Ataguba,
Principal Consultant,
The Learning Gate Limited,
at New Estate Baptist Church Abuja,
on 9th December,2017
The Learning Gate
OUTLINE

 Agriculture and Agribusiness

 Overview of the Agricultural Sector in the Nigerian
Economy
 Investment Opportunities in the Sector
 Value Chain Mapping
 Challenges
 Available Support
 Conclusion

The Learning Gate

AGRICULTURE
Agriculture is the cultivation and breeding of animals,
plants and fungi for food, fiber, biofuel, medicinal plants
and other products used to sustain and enhance human life.
Wikipedia
Agribusiness is the business of agricultural production. The
term was coined in 1957 by Goldberg and Davis. Wikipedia
Agriculture is God’s idea and the first commission given to
man. Scriptures :
 Genesis 2:8-9
 Genesis 2:15
 Genesis 2:19-20a
The Learning Gate
OVERVIEW OF THE AGRIC SECTOR IN
THE NIGERIAN ECONOMY
 Early 1960’s -agriculture was Nigeria’s main foreign
exchange earner. Nigeria produced 60% of the global
supply of palm oil, 30% of groundnut 15% cocoa and other
crops. There was food security and Farming was a
lucrative business.
 The 1970’s -the oil boom resulted in a decline of the
agricultural sector due to a neglect of other sectors of the
economy and over dependence on oil. The economic well -
being of Nigerians was affected negatively.

The Learning Gate

OVERVIEW
 Today, Nigeria’s economy is currently at its lowest ebb,
resulting from:
 Price of crude oil
 The value of the Naira
 Demand pressure for foreign exchange and a depletion of
the excess crude account.
 Unemployment rate is spiraling upwards, growing at 11%
per year with a youth unemployment rate that is over 50%.

The Learning Gate

National Bureau of Statistics Nigeria Poverty Table

Location 2010 Population estimate People considered

absolutely poor (based
on the Food Energy
Intake measure of
poverty)

National 160.0 million 60.9% i.e. 97.44 million

Rural 112.0 million 66.1% i.e. 74.03 million

Urban 48.90 million 52.0% i.e. 24.96 million

The Learning Gate

AGRICULTURAL POTENTIAL
 Land: 84 million ha arable land :40% utilization
 Labor: A projected 110 million youth in the workforce by
2020 - low wages for Agric. intensification
 Large internal market : 176 million people, projected to
grow to 470 million by 2050 (1.3 trillion naira Food import
bill)
 WATER: 279 Billion cubic meters of surface water.
Untapped irrigation potential with 3 of the 8 major river
systems in Africa

The Learning Gate

AGRIC. POTENTIAL Contd.
 Focusing attention on the agriculture sector is imperative
in order to address the problem of poverty and
unemployment.

 Increased and accelerated investments in agriculture will

grow the economy.

 Nigeria’s area of comparative advantage is

AGRICULTURE; we can leverage on this to compete
globally.

The Learning Gate

Investment Opportunities
The Value Chain Map : Agricultural Activities that
are connected like a chain

The Learning Gate

Investment Opportunities - INPUT SUPPLY :
The production and distribution of farm inputs

Seeds/seedlings/ Agro-chemicals such Farm machineries

stem- as herbicides, such as tractors,
cuttings/fingerlings/ fungicides, ploughs, planter,
chicks, feed insecticides and weed slashers, disc-
fertilizers harrow, boom
sprayers, knapsack
sprayers, fertilizer
applicator,
harvesters, irrigation
equipment
The Learning Gate
 Investment Opportunities – FARMING:
The production of crops and animal

Direct Actors Establishment of small, Large & small farmers –

medium or large scale crops (rice, maize, yam,
crop, fishery, poultry or fruits & vegetables,
other animal farms. flowers, cotton etc.);
livestock – cattle,
goats, poultry etc.; fish,
wildlife – snails, grass
cutters, rabbits

The Learning Gate

Investment Opportunities – PROCESSING /
DISTRIBUTION of farm produce; (Agro-
industries)
Processing of Marketing and Production and/or
cassava, maize, distribution of the marketing of agro-
cocoa, rice, oil-palm, consumer goods processing
fish, chicken, etc. produced equipment. FIIRO ,
into intermediate Grinders , Milling
and final consumer plants, Driers, Silos,
goods; Packaging & Labeling
equipment

The Learning Gate

Other Investment Opportunities- Services

 Finance of all the activities listed (inputs, farms,

processing equipment, consumer goods etc.);
 Insurance of the farm and all farm assets;
 Provision of transport services;
 Provision of warehousing services;
 Provision of veterinary services;
 Provision of laboratory services;
 Provision of extension services etc.

The Learning Gate

GETTING STARTED
 The highlighted projects are viable, however necessary steps
must be taken before the investment is made which must be
subsequently supported by efficient management. You
cannot be an absentee investor or manager.
 It is thereby required that detailed and full FEASIBILITY
STUDY should be carried out before investing in any of these
projects.
 It is advisable that you consult extensively especially with
AGRIC EXPERTS, and carefully plan out the activities, before
investing.
 It is recommended that you engage the Services of
PROFESSIONALS in all identified technical areas.
 Initial
The Learni Start-up costs may be high and these may include cost
of facilities, equipment, land etc
TIPS FOR GETTING STARTED

 Piloting – Start small

 Home Gardens recommended
 Form Cooperatives
 Contract Farming
 Business Partnerships
 Seek Investors
 Study visits and tours are recommended

The Learning Gate

TYPICAL CHALLENGES

Inadequate access to;

 Land (availability, high clearing cost etc.)
 Mechanization & appropriate technology
 Improved varieties
 Extension Services
 Inputs (agro-chemicals, fertilizers etc.)
 Finance
 Distribution Channels

The Learning Gate

TYPICAL CHALLENGES..... cont’d
 Market
 Information
 Poor infrastructure (roads, storage facilities etc.)
 Low skill levels and high cost of labour;
 Conflicts and security risks;
 Enabling environment (policies that don’t promote
inclusive growth);
 Other barriers to doing business.
….Efforts must be made by INVESTORS to overcome these
challenges.
The Learning Gate
AVAILABLE SUPPORT
Despite the numerous challenges that have been
highlighted, the good news is that there is a lot of support
to encourage investment in the sector. Some of these are:
 Government Support (FMARD, Agricultural Development
Projects etc. NAFDAC,RMRDC,SON
 CBN Agric. Loan, Bank of Agriculture ); NIRSAL
 Research Institutes Support (IITA, NRCRI, NIOMR, NIFFRI,
NCAM, NCRI, CRIN etc.);
 Donors Support: Grant Funding USAID ,AFDB,IFAD,FAO

The Learning Gate

AVAILABLE SUPPORT

 Advisory Services: Business Development Consultants

LIKE The Learning Gate offers support to :
 SME’s
 International Development Agencies e.g. USAID
 Government e.g. FMARD

The Learning Gate

 Business Case

The Learning Gate

CONCLUSION
 This presentation has taken us through a high-level view
of a number of AGRIBUSINESS investment opportunities in
Nigeria including challenges and available support.
 As an existing or potential Agripreneur, you certainly can
leverage existing opportunities in the Agriculture Value
Chain in Nigeria, whether for domestic market
participation of export business.

The Learning Gate

 Thank You!

The Learning Gate