How To Start Agricultural Business in Nigeria (2024)
Starting an agricultural business in Nigeria is very lucrative which is beyond farming and planting of crops or even the rearing of animals. The benefit of this agricultural venture has yielded profit to many farmers who are willing to take the risks into starting an agricultural farming business to earn a living.
Agriculture is one of the oldest occupation in Nigeria and indeed in the whole of Africa. We all know that agricultural business in Nigeria is made of different practices among which are livestock/ animal husbandry, farming which includes planting and harvesting; there is also the mineral aspect which includes trapping of natural resources in the soil.
In the olden days, it’s believed that only a lazy man that will not till the ground to make maximum use of the fertile land present in Nigeria. This belief might be right to some extent because they engaged in the subsistence type of agriculture where a farmer only plants for his family and friends only.
In the world today, agriculture especially farming has taken a new look, farmers now invest in a large scale quantity, they make use of modern day equipment and facilities unlike the crude implements used decades ago.
Many youth now take farming as career and they are successful in the business. While others wish to be engaged in agriculture business venture but don’t know how to start while some are thinking of the risk attached to farming system once there is an outbreak of diseases, rodents just as it occurred in the country 2 years back.
If you fall into the category of people who are afraid of the risk, or don’t know how to start an agricultural business in a commercial way, you don’t need to panic as we shall be telling you how to start an agricultural business without recording much loss below.
Steps To Take in Starting Agricultural Business in Nigeria
Step 1: Make researches
As we all know that the more we ask questions, the more we know new things and our level of understanding is developed. Research gives you more knowledge of what part of agricultural business you are engaging yourself which will be more profitable and conducive for you to venture into.
It will help you know the types of livestock or cash crops people are most likely to buy and the seasons which this crops and livestock are available in the market.
During the research you will get to know what rate they are been sold based on the quality and freshness. You can make this research anywhere but it’s advisable you go to market place where you will meet both farmer and the buyers for advice.
Step 2: Choose your crops or livestock
Your market research should give you an idea of what crops or livestock are in demand in your area. Whether you can grow those crops depends on some factors, such as where the farm is located and how large the farm land is. Estimate the climate of the land if it’s conducive for your crops or livestock you’ve chosen.
Step 3: Secure adequate land
Land is a free gift of nature and it’s very important to secure a land in a very conducive environment for your crops and livestock to thrive.
Make sure you examine the farm land to know the content of the soil, so that your crops or livestock will not be affected. Imagine a land without a fertile soil, this will affect the growth of the crops and will not yield good fruit when it’s time for harvest.
Make sure there is regular water supply in the farm or a large body of water such as lake, ocean, sea close to the farm for adequate supply of water for crops or livestocks.
You need to know that the price for acquiring acres of land. This should be part of the research you should do. You also need to ensure that all documents and paper works are handed unto you for confirmation that you’re not dealing with a fraudster.
Step 4: Register your farm/business with concerned organizations
This is one of the most important aspect of agricultural farming business. You would have to register your farm with organizations which supports agricultural practice. This creates better opportunity to receiving loans from the government. It also makes you partake in any governmental benefits like distribution of farm machinery, fertilizers, herbicides and pesticides.
Step 5: Hire farm labor
You need to hire full time labour to help you in the farm before and when it’s time for harvesting the crops and taking care of livestock. These labourers should ensure that bushes are cleared, making of heaps, planting, application of fertilizer, controlling of pest, rodent and watering the crops are regularly done.
You will also need an extra hand in picking and harvesting some of this crops, and for your livestock, regular feeding, giving of injections to control animal disease, and regular check up.
In agricultural farming business, you must be ready to take risk. For without risks, you might not reach the full level of success you ought to have achieved.
Finally, you must be ready to record losses in your business.This is not to scare you but to let you know that there is no business without a good(profit) and bad(loss) days.
I believe this article will guide you on how to start your agricultural business easily.
How To Get Agricultural Loan In Nigeria: A Brief Guide
It is no news that due to the global crashing of oil price and the current economic situation in Nigeria, citizens are looking for ways to survive the situation and one of the ways they do that is venturing into agriculture. And for those that had tried their hands in agriculture, it had proven to be very lucrative and addictive. However, venturing into agriculture is not easy, you need capital to start and grow in it and getting this capital can be difficult.
Even though the Central Bank of Nigeria (CBN) released about N200 billion to fund agriculture, many people still don’t know how to have access to this money. If you are a farmer and you are looking for how to get loan for your farm business, worry no more as this article would show you how to access loan for your Agric based business.
First, it is important you know that not all agricultural ventures can be used to access this loan. Some wouldn’t even pass the review stage, so it is better you venture into the farm business that will get you the money from the bank to start your business. Some of these includes Maize farming, rice farming, cassava farming, cocoa farming, snail farming, poultry farming, fish farming, etc.
To get the loan as a farmer in Nigeria, do the following:
- Visit your states branch of Bank of Agriculture (BOA)
- Ask for the requirements for accessing the loan
- Fulfill the requirement
- Submit required documents for verification
- Provide Surety or Guarantor as the case may be
- Wait for feedback from the bank
However, you need to know that you might be lucky to collect it if you have been banking with them for at least 6 months and also have saved at least 20% of the amount you intend to loan from the bank. The interest rate is 12% when you get to the bank, you will get briefed on the requirements.
Conclusively, it is important you have a good business plan as that would be one of the most important thing that will make or break your chance of getting the loan.
