10 Most Profitable Agricultural Business in Nigeria
In this post, we’ll show you the Top 10 Most Profitable Agric Businesses in Nigeria. You will also get to see business opportunities in the agriculture sector, money-making agriculture business ideas, a brief overview of online farming in Nigeria and how to set an agro-business plan.
In places like the USA and Australia, farmers are among the richest people. Here in Nigeria, we have little regard for Agriculture. We debate about the best and lucrative agric niche to venture in Nigeria, most people start with rice, cassava, maize, beans, etc. Yes, all are profitable and some are more profitable and have a higher degree of return on investment (ROI) than others.
I planned to start a backyard farm and maybe plant some onions, pumpkins and avocado farm for myself and use the extra space to plant some other things that I could even take to the market to earn a Naira or two. So, I went online and searched Most Profitable to Agric commodities to Invest in Nigeria. During the course of my research, I discovered that most blogs and websites give different answers. So, that baffled me and I did more research and even went into the market to ask for the price and check online to check the standard price and I got this list.
My research revealed that over 43% of the answers I got from these “authority blogs” were wrong. Which gave birth to this list. This list contains the Best Agric Products on the Nigerian Market, most purchased Agric products and their market prices, problems and small scale Startup Ideas for your Agric Business.
When we talk about profitable niche ventures in Nigeria, the crop that comes into our head is cassava or rice but these two were not even in the top three according to their market price per kg, weight and maximizing profits.
Yes, they are profitable but the expenses, input, and other expenditures don’t add up to the gain you can make from my first two points and the conclusion I drew today revealed this very post.
Most Profitable Agricultural Business In Nigeria
So, this is the 2019 list of the most profitable Agric Business Ventures in the Nigerian market. You should also know that Exporting Agro Products have a massive revenue base than just local marketing.
1. Poultry Farming:
You may find it hard to believe but it is true. Chicken farming is the Most Profitable Agric Business in Nigeria. Not only the fact that they are easy to breed but also very prolific. An adult hen(3 months old) can lay as much as 6 eggs every week, selling these eggs alone is enough to sustain you.
Egg, meat, feathers, dung for manure and feed, etc are also items that can be harvested from this Agric Business. Chicken Farming stands as the most lucrative business opportunity in the agriculture sector, yet, it is still not fully tapped and most poultry farms are either poorly managed, funded or make use of crude and substandard facilities.
Rearing a chicken doesn’t take much apart from the feeds to make them grow bigger and medicine to keep them healthy and prevent an outbreak, you’re good to go. Plus they can resort for food on their own and loss in this sector is easier to control. If they break their egg, an incubator can be used.
An incubator can be a minor monetary setback but if you want to make money form your poultry farm, you’ll need to have an incubator. During festive times ie Christmas, a Cockrell with an average weight 2.4kg usually 16 – 25 weeks old is sold between N2,500 to N5,000(depending on your bargaining skills). That’s a lot of money for just one cock. You can also rear turkey, ducks, goose, etc
2. Livestock Farming
As shocking as it may seem it true. Livestock Farming In Nigeria is also one of the Most Profitable Agricultural Business In Nigeria. Although you can’t start it in your backyard, a cattle farm have proved to be a constant source of money since one cow is equivalent to the same amount used to rent a 3 bedroom flat in Lagos. Livestock Farming is prominent in the Northern Parts of Nigeria.
The reason why cattle is not number one on this list is that the startup. It is a bit expensive to run. Running and upkeep are usually expensive plus overgrazing is a problem to both you, the cattle(s) and the environment, which could ruin your business. And cattle don’t have much resistance to cold and diseases.
That aside there is a lot of money on a cattle farm and you can also benefit from other items like the meat, milk, its hide and skin, faeces, bones, and horns, etc. You can also rear other animals alongside your cattle like horses, goats, sheep, pigs, etc. Who knows, you can have your own ranch in no time.
Cattle Farming is the Most Profitable Livestock Farming In Nigeria. An adult cow has an average weight of 245kg which is sold for N300,000 and in rare and extreme cases N500,000 while an adult goat is sold somewhere between N20,000 to N60,000. A kg of meat is sold for N800 in the market. This proves that this Agric business is a goldmine in the Nigerian market putting Livestock farming at the second spot on my list of the best Agric business in Nigeria.
3. Rice Farming
An estimate of 78% of the country’s population eat rice on Sunday alone and 53% eats rice 2 to 3 times a week. Currently, Nigeria is one of the leading producers of rice in the continent and Nigeria also ranks as one of the highest Rice consumers of rice in the World.
Although rice from planting to harvesting usually takes up to 6 months, it requires constant supervision from start to finish. It’s no wonder that the Nigerian government spends over N5,000,000,000(Five Billion Naira) annually on rice importation to make up for lost batch.
In fact, my research shows that the increase in the price of rice doesn’t affect the demand for this commodity. It is not a competitive demand and cannot be substituted. Besides, rice prices are only increased because producer/suppliers can’t keep up with the demand for rice. So, they increase the price of rice in order to slow down the demand and keep the commodity on the market. You can never run out of customers in this Agric Business.
A kg of rice is currently sold for N600 and a bag for N17,500. Now do the maths, how much will you as a producer gain after selling a tonne or two. With $600,000 you can start your own rice farm in Nigeria.
4. Cassava Farming
Just because I nagged earlier about rice and cassava doesn’t mean they wouldn’t be on my list. There is a great love for cassava and cassava related products in Nigeria. In fact, Nigeria is the world’s leading producer of cassava in the world. Cassava is another staple crop you should consider farming and one of the best low-cost alternatives to rice in Nigeria.
We make a lot of products from our beloved cassava. Some of them include Garri, Fufu, White Garri, Abacha, Cassava flour, etc. Cassava is one of the best Money Making Agriculture Business Ideas, you should try out. You don’t need seeds, just the plant stem, thereby reduces your expenditure, it can be grown in almost any soil type and can be integrated with Plantain, Yam, and Potato.
And cassava is really easy to plant, just stick the stem in the ground. You do not need to buy much and the pest that affects these plant are just locust and grasshoppers that attacks it leaves. This saves you a lot of money at least 35% of your initial input. To top it all, the price of a bag of Garri is almost the same as the price of a bag of rice.
A kg of cassava is sold for N450 and bag cassava which weighs 50 kg is sold in for N17,000(Umunya community of Anambra state). Exporters of cassava are the ones who benefit the most from this Agro Business.
5. Tomato Farming
The price of tomato has not been stable since 2014. Even as expensive as it is, there is still a large demand for this commodity. Tomato is one of the Most Profitable Vegetables To Grow In Nigeria. Tomato farming is one of the most profitable Agric businesses to start in Nigeria. This agricultural business can also be combined with Pepper and Onion Farming.
If you partake in the 2018 Sallah celebration, you can testify that the price of tomatoes. The price and quantity changed. A kg of tomato was actually sold for N800 and the usuals N725 putting tomato on and the fifth place on my list of the Most Profitable Agricultural Business In Nigeria.
Besides, there is no better item on this list that tastes better than rice and stew. Besides rice and tomatoes are joint/complementary demand, you need tomato to go with the rice. If the price of Rice increases, the price of tomatoes does the same. Currently, a basket of tomato(40kg) is sold for N8,000 while red pepper (tatashe) cost N15,000 and onion cost N20,000
6. Bee Farming:
This is one of the untapped gold in Nigerian agriculture. When we start listing the advantages of honey and the profitability of this agricultural business, this article would not cover it all. It preserves skin tissues, it exfoliates, it is a healthy alternative to sugar, it doesn’t go sour, spoilt or expire, it detoxes the body, etc. No wonder there is the idiom ” as sweet as honey”. Honey is just too good. Honey Farming/Bee Keeping is also one of the best.
This agricultural business has been left out in most post concerning Lucrative Agro Business In Nigeria. And those who even succeeded in this business refused to reveal their secret. There is little or no work at all here, just have a garden in your farm and the queen and her hive would do all your work for you, just buy your gear and be ready to harvest.
How much do Bee farmers Make? Each Beehive can produce between 17KG to 30KG of honey on average annually. Depending on the location, climate, temperature, pests, flowers and hive population). The packaging is the key to honey marketing.
Most bee farmers do not even package their product, just a neat water bottle will do. A 150cl (big Eva water/rangolis bottle) of honey cost as least N3,000 and N1,500 for a 75cl bottle in Enugu, Nigeria. Bee Keeping would have been my number three the only problem is the demand for this commodity is just above average.
7. Fish Farming
There are not many vegetarians in Nigeria. Some consider fish healthy and substitute meat. They don’t eat meat because of their diet but they prefer fish. But that aside fish farming is a Profitable Agro commodity in Nigeria. It can also easily be integrated with snail Farming and poultry farming.
The fishery is very profitable since their cost is almost the same with poultry bird. But it is very very expensive to start up. It can take up to 10 million Naira to start a small scale fish farm. Fish would have dominated this list if not for the start-up expenses and other expenses with includes pest control, labor, feeds, medicine, pond maintenance cost, water, pump, and filter, etc and all this cost at least 1 million Naira annually on a small scale.
That aside catfish, tilapia, prawn, mackerel and crayfish essential ingredients in the kitchen. the current price for a live Catfish is the market is around N600 and N1,200 per KG depending on the size.
8. Bean farming
Honey beans popularly known as Oloyin Beans or Olotun beans in Nigeria is one of the major sources of protein consumed by the Nigerian populace. Beans are also one of the most profitable Agric commodity in Nigeria and like rice and Garri, Bean is a staple food and have a large demand in Nigeria.
Currently, a paint of Oloyin beans stands at N1,600 for a painter(a local measure) and N500 per kg and a bag of beans is also sold for N16,900. Nigerians that don’t like the taste of bean porridge usually go for Moi Moi, Akara, Agoyin beans, etc.
9. Maize/Corn Farming
Then we have corn/maize. Golden morn, custard, pap/ogi/Akamu, corn flakes, etc virtually all our breakfast are processed corn. Not only that corn is easy to plant, grow quickly, it can also be processed easily. Nigerians love it. Corn farming is undoubtedly one of the Most Profitable Agricultural Business In Nigeria.
One problem in corn farming is that most insects, rodents, animals, and birds around your farm will attack you crop and if your corn farm is not properly taken care of, it can destroy over 27% of your crop yield making you lose your profit but if you’re a smart farmer that certain measures (pest control, scarecrow, traps, insecticide, and introduces natural predators), you can reduce this damage to less than 9%. And you can join other Nigerian farmer selling a kg of corn for N400 and a bag for N19,000.
10. Palm Oil Farming
Palm Oil Production is another profitable agro-business in Nigeria that is easy to startup. This agricultural product has high demand in and outside Nigeria. This is one Agric product you should start farming if you want to export your goods outside Nigeria. It can also be integrated with your Vegetable Oil Farm which is another High Demand, Profitable Agro product in Nigeria.
Palm oil extraction and processing are usually done using the chemical extraction process using hexane. Hexane is used to reduce oil waste and makes processing easier. Hexane is used to extract the remaining 5% – 6% of residual crude palm oil (CPO) leftover in palm-pressed fiber, thereby enhancing oil extraction rate. But naturally processed/ extracted oil is a whole lot more expensive than chemically extracted Palm Oil.
In the state capital of Benin City, Edo state a 5-liter keg of palm oil is sold for N2,000 which amounts to N400 per kg/liter and in Lagos, a 5-liter keg of palm oil is sold for N2400. It’s easy to plant, resistance to pest but slow growth and hard to process. A 25-liter gallon of vegetable oil, now cost N12,700. So, if you’re lucky enough to have running palm oil farm of maybe 20,000-50,000 trees, your profit will be enough to feed the whole Lagos.
What is Agriculture?
Let’s go over it again so you don’t miss a thing and understand where you are heading to. Agriculture simply defined is the practice of farming/cultivation of the soil for the growing of crops and also rearing of animals to provide food, wool, and other products. Some notable university and Universities of Agriculture in Nigeria include:
- College of Agriculture, Jos.
- Federal College of Agriculture, Ibadan.
- Federal College of Agriculture, Ishiagu.
- Federal College of Animal Health and Production Technology Vom.
- Federal College of Fisheries and Marine Technology.
- Federal College of Forestry, Jos.
Why You Should Invest in Agriculture in Nigeria
My small list has been able to prove that there are so Business Opportunities In The Nigerian Agriculture Sector. In fact, Agriculture should be the center of the Nigerian economy, Nigeria is blessed with a tremendous amount of agricultural resources, a large expanse of land measured to be over 93 million hectares (923,768 km²) of which 81 million hectares are arable.
Green on the Nigerian Flag is a symbol of Agriculture, which is the main source of livelihood for the majority of the Nigerian populace. The Agro sector of this Nigeria employs over 40% of the entire country’s labor force. Most parts of the Nation contains rich soil, well-distributed rainfall, favorable climate conditions and warm temperatures year-round. This makes Nigeria one of the best places to invest in Agriculture.
How to Get Loan for Agriculture Nigeria
Agricultural loans are mediums used by any government to encourage its citizens’ participation in agricultural practices by granting them access to government grants and loans. These loans are made available by the government to the public and cover a range of agricultural practices including crop cultivation and livestock rearing.
Agricultural Loans in Nigeria can be obtained from the Central Bank Nigeria, Bank of Agriculture, Commercial Banks and Agricultural Co-operative Societies and Unions. If you need an Agric loan for your business, just go to your preferred institution to see the requirements. If you meet their requirement, you simply apply and to get a loan to Fund your Agric Business Anywhere in Nigeria.
How to Revive Agriculture in Nigeria
Agriculture in Nigeria has been taken aback by poor interest/investment and poor government control/funding. In order to make Nigeria’s agriculture productive in Nigeria, The Federal Government and Individuals in the Private Sector need to improve competitiveness in the international environment, reorientate Nigerians about mechanized farming and improve the efficiency in producing the Nation’s Agro Product.
Agriculture is important to the Nigeria economy and daily lives of Nigerian, that, despite its setbacks, it will inevitably prosper.
Online Farm Crowdfunding Platforms in Nigeria
No business is completely risk-free. Investing in agriculture through agro-crowdfunding platforms is a relatively new concept in Nigeria. online farming allows you to invest in Agriculture and bloat out the risk involved in this business, These platforms are obviously attempting to boost investment using risk regulation policies. Some of the best Agro Crowdfunding platforms in Nigeria are:
- Thrive Agric
- eFarms Nigeria
There you have it. The top 10 most profitable Agric ventures in Nigeria. This list contains the best products on the Nigerian market, most purchased and their market prices but if you don’t have good or standing information about them and who like other profitable business ideas includes starting plantain plantation, cucumber farms, pineapple farms, orange farm, vegetable farm, cotton farm, rabbit farms, groundnut farms, and timber harvesting. Nigeria is a broad market, no matter your location, niche, and product. The right input equals the right output.