Top Niches Within The Agricultural Business in Nigeria

In the past, the agricultural business in Nigeria was one of the governments major sources of income. Nigerians cultivated food and cash crops such as palm fruit, cocoa, cassava, etc. At that time, these crops served as a major source of export products to other nations, to serve as a source of income for the nation. 

Now, the word agri-businesss is a combination of the words Agriculture and Business. It refers to any business or commercial endeavour related to agriculture and farm-related activities. Agri-business also relates to animal rearing businesses, such as cattle rearing, pig farming, poultry, etc. This article explores available and profitable startup ideas in the agricultural business in Nigeria.

Starting an Agricultural Business?

The agricultural business in Nigeria is mostly made up of small scale businesses. However, it is one of the highest contributing sectors to the country’s economy. Recently, in Q1 of 2024, the sector contributed 21.07% to the country’s overall GDP. With such a high stake, you should know that starting an agribusiness involves taking certain steps to help you set up. This includes the following steps:

Determine Your Agricultural Business Venture:

In starting an agricultural business, the first step to take is to determine and choose the kind of agricultural business to venture into. There are a variety of agricultural businesses, which include cocoa farming, cassava farming, pig rearing, poultry, etc. 

Market Research:

Here, you are to research the kind of agricultural business you want to start. Check out the processes involved in the business, how much would be required to start up, the machinery required, the cost of labor, rate of return, etc.

Create a Business Plan:

After carrying out thorough research, your next step is to create a business plan. This guides your work. Your business plan includes details, such as your business goals and objectives, financial analysis, competitor analysis, market analysis, etc. This business plan would serve as a guide for every activity to be carried out, and how they are to be carried out.

Get a Location:

Depending on your budget, you can purchase or rent an adequate plot of land to start up your business. This depends on the kind of agricultural business you decided on. You should also get necessary machinery and equipment that would help you work. At the beginning of the business, you may not be able to purchase all the required equipment. However, as time goes on, you should purchase more to make your work faster.

Register your business:

After getting everything ready for your business, you can then move forward by registering it with Nigeria’s Corporate Affairs Commission. This helps your business to be legally recognized and approved by the government.

Raise Money:

Start-up capital is an important component for any kind of business, and agricultural businesses are no exception. Money for your agricultural business can be raised through persdonal funds, grants and loans, and partnerships with other people interested in the agri-business.

Top Niches Within the Agricultural Business in Nigeria

There are a variety of niches within the agricultural sector in Nigeria, and they are as follows: 

Crop Production:

The production of crops, through farming, is one of the opportunities in agriculture in Nigeria. It involves the cultivation of land, planting, and harvesting of crops for man’s use. This is the first stage in every agricultural business, and it requires knowledge of farming. Currently, the most profitable agricultural business in Nigeria is the palm tree business. Here, palm seedlings are planted, from which palm trees are produced. And from palm trees, produce such as palm nuts, palm oil, palm wine, shrubs for making brooms, etc can be derived for man’s use.

Agro-Processing:

Another opportunity in agriculture is the processing of raw crops harvested from farmlands. Agro-processing refers to the physical or chemical process of converting raw food materials to their finished state, for sale and consumption. So, one can decide to delve into this aspect of the agricultural business as a means of livelihood. Cashew nut processing, cassava processing to get cassava flakes (Garri), palm nut processing to get palm oil, shea butter extraction and refinery, cocoa processing for making beverages, etc. are all business opportunities in the processing aspect of agriculture. Some agro-processing businesses include: 

1. 1. Cassava Farming: Cassava Farming is one of the major agricultural business sectors in Nigeria, which involves the planting, harvesting, and processing of cassava for men’s use. And from this crop, other food items, such as garri are obtained.
   2. Palm fruit Farming: Palm fruit farming involves the planting of palm seedlings, which would produce palm trees, from which palm nuts would be harvested. 
   3. Rice Farming: Rice is one of the most consumed food in Nigeria, thus, making rice farming a lucrative agricultural business in the nation.
   4. Maize farming: Maize farming involves the planting and harvesting of maize. 
   5. Cucumber farming: Cucumber farming involves the planting of cucumber for man use.
   6. Yam farming: Yam farming involves the production of yam tubers, which can be used to make yam flour, pounded yam, etc.
   7. Potatoes farming: Potatoes farming involves planting and harvesting potatoes, which can be used for potato chips and other food items.
   8. Mushroom Business: The mushroom business is another lucrative agricultural business.
   9. Bean Flour Production: Bean flour is obtained from processing beans, to get the flour that can be used for producing food such as beans cake, etc.
   10. Corn Flour Business: Corn flour is gotten from processed corn and can be used to make various food items.

Livestock and Fishing:

Another brilliant business in the agricultural industry, this involves the rearing and processing of live animals and fishery for consumption. Some businesses within this niche include: 

1. 1. Poultry Farming: Poultry farming involves the rearing of birds, such as chicken, hen, turkey, and other poultry birds. It also involves the production and sale of eggs for man’s use. 
   2. Snail Farming: Snail farming is another very lucrative business opportunity that involves keeping snails that can be sold. 
   3. Cattle rearing: Cattle rearing is another agricultural business, which is more popular in the northern part of the country. It involves keeping cows, rams, goats, etc to sell, consume, etc.
   4. Catfish Farming: This is another agricultural business sector in Nigeria, which involves keeping catfish and selling them.
   5. Quail Farming Business: Quail farming involves rearing quails for their flesh and eggs, for human consumption and to sell.
   6. Pig Farming Business: Pig farming has to do with rearing pigs for sale and its products, such as pork meat.

Crop Storage:

Storage is also an important business opportunity in agriculture, which involves the storing and preservation of crops, for man use. Storage facilities such as barns, drums, etc to help preserve farm produce cannot be overlooked, as they play a key role in preserving these produce when in excess, to prevent spoilage. This is another business opportunity in agriculture that can be taken up.

Crop Transportation/Logistics:

Transportation of farm produce from farmlands to the market is an opportunity that is being taken advantage of by many individuals in the agricultural sector. Most farmlands are not close to the market. Hence, transportation facilities need to be put in place to transport farm produce from the farmland to the market, where they would be sold to retailers and consumers.

Marketing:

This is another important aspect of the agricultural sector, which involves the marketing of farm produce to make people aware of where to get certain food or cash crops. Marketing could also involve the advertisement of farm equipment, fertilizers, etc. which are used to enhance farmers’ labour.

Crop Exportation:

Exportation is another lucrative business opportunity in the agricultural sector, which involves the transportation of cash and food crops to other nations of the world. The agricultural business in Nigeria has a lot of export potential. This is usually a large-scale business opportunity that brings in a lot of income for any agricultural business that is focused on exportation. The sector’s export potential is in farm produce such as:

1. 1. Palm kernel oil
   2. Cassava flour
   3. Ginger
   4. Cocoa
   5. Honey
   6. Garlic
   7. Yam
   8. Cashew nut
   9. Rubber
   10. Sesame Seeds

Crop Importation:

The importation potentials for the Agricultural sector have to do with farm produce which are imported into a nation from other nations. Between 2016 and 2019, Nigeria imported crops at a total of ₦3.35 trillion, four times higher than the country’s crop export of ₦803 billion within the same period.The following crops have high importation potential in Nigeria:

1. 1. Wheat
   2. Rice 
   3. Diary
   4. Seafood
   5. Wine

Commodity trading:

Commodity trading involves selling crop produce internally in the nation. This requires transporting farm produce to local markets and selling them to individuals.

Agriculture Consultancy:

As an expert in the agricultural sector, another way to make money in this sector is to offer your knowledge to people as a consultant, for a fee. Many people require the knowledge that you have. Hence, offering them your knowledge as a consultant would also yield a lot of income for you.

Challenges Facing the Agricultural Business in Nigeria

There are various challenges faced by individuals in the agricultural sector which hinder production, preservation of produce, and other aspects of the sector. Some of these challenges are:

1. Lack of mechanized equipment: The lack of mechanized equipment such as tractors, pulleys, etc is a major challenge that hinders the production of crops. These mechanized equipment are meant to make farming work easier and faster. Hence, when farmers do not have access to them, these farmers need to resort to the use of crude farm equipment, and this slows down work and reduces efficiency.
2. Finance: Access to financing for agricultural startups is another challenge faced by the agricultural sector. Farmers need funds to purchase land, seeds, rent or buy mechanized equipment, rent or buy storage and transportation facilities, etc. However, when funds are limited or inaccessible, they are hindered in fully expressing their potential.
3. Pest problems: Pests that disturb crops are another challenge, which affects farm output. Some of these pests destroy planted crops, resulting in low yield.
4. Lack of storage facilities: Storage facilities are also very important in the agricultural sector, as they help in the preservation of farm produce, after being harvested. Now, the lack of these storage facilities is another issue, that sometimes leads to the damage of these farm produce, when they are not properly stored for future use. The lack of these storage facilities hinders the large-scale production of crops.
5. Market access: Accessing markets from farmlands is another major challenge, encountered by farmers. Most farmlands are in rural areas, and most of the roads leading to these farmlands are not motorable. Hence, this poses a challenge when transporting farm produce to the market for sale.
6. Natural disasters: Natural disasters, such as drought, flood, erosion, etc is another challenge of the agricultural sector, which could lead to a lot of damage if care is not taken.

Final thoughts

The agricultural sector is a big sector in the nation, from which various export products can be gotten, which would yield a sustainable source of income for a nation. Even internally, agriculture, through the production of food crops to be consumed by individuals, is important for human survival.