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Investor Prospects 2016 by YoungExec: 12:11am On Dec 26, 2015
Feel free to drop your likely investing route for 2016. Let's share ideas.
So far:
1. Importation: Not attractive due to exchange rate and Forex restrictions
2. T.Bills: Unnattractive due to very low ROI
3. FD: Unnattractive, Banks are doing low single digits
4. Manufacturing: Unattractive as old issues (no power, high interest rates) joined new issues (Forex restrictions, low income per capita, inflation)
5. Stocks: I already took a hammering in 2015, watched my portfolio lose 20% value across board both blue chip and no chip cry
6. corporate debt: Unnattractive due to current economic headwinds, plus govt policy uncertainty.
7. Oil & Gas: Unnattractive, stocks down due to ever falling oil prices (plus Iran is about to ramp up production and add to the wahala) plus uncertain govt oil and gas policy.

Brothers & Sisters in the Lord I am beginning to look at Entertainment (Africa wide consumption) and Agriculture (Processing for export). But sadly, most coys in these fields don't have solid investable structures.

My ogas, let us look into 2016 and proffer solution for at least 15% ROI. I can't be the only one seeing this bleak outlook.

5 Likes 2 Shares

Re: Investor Prospects 2016 by Onegai(f): 5:00pm On Dec 26, 2015
Sit tight and weather the storm. That's what I deduced a while back. Right now, if you can flip large amounts of forex, that's all that will bring in some profit. But otherwise, I haven't found a single investment worth taking...
Re: Investor Prospects 2016 by chukwuwike2ny(m): 5:10pm On Dec 26, 2015
You can get 15%(10%Principal+5%ROI) monthly for 10Months...

Full insurance and assurance... cool

For more info:
08067233120
08111595550 - whatApp
2895029C - BB Pin
Click2ny@gmail.com

Re: Investor Prospects 2016 by netotse(m): 9:38pm On Dec 26, 2015
Onegai:
Sit tight and weather the storm. That's what I deduced a while back. Right now, if you can flip large amounts of forex, that's all that will bring in some profit. But otherwise, I haven't found a single investment worth taking...

When you say 'flip large amounts of forex' you're referring to round tripping right?

@OP
Agriculture is a winner but it requires time (you or someone needs to check up on the investment), got my fingers burnt this year cos I couldn't keep visiting the farm, planning to try processing instead of producing in 2016(one a small scale though)

This entertainment that you're saying has k-leg if you ask me, it's too much of an art to be predicted.

1 Like

Re: Investor Prospects 2016 by YoungExec: 7:09pm On Dec 27, 2015
netotse:

@OP
Agriculture is a winner but it requires time (you or someone needs to check up on the investment), got my fingers burnt this year cos I couldn't keep visiting the farm, planning to try processing instead of producing in 2016(one a small scale though)

This entertainment that you're saying has k-leg if you ask me, it's too much of an art to be predicted.

1.
I would never get involved in Agro at the production level. Too much room for losses. there is a huge Nigerian / African Diaspora in Western countries and I hear ABX and Arik have partnered to export NG Agro to Europe. Also NEXIM bank is looking like they have woken up to finance Nigerian exporters.
2.
Regarding entertainment, I still have question marks due to the volatility of the industry. But you can't ignore the forex potential in it o. Especially when you target the African diaspora in the west.
3.
A friend is trying to convince me to go into consumer finance. He argues that the fed govt will never default on paying salaries (not so confident about pensions). So fed workers often take loans from banks at 24 - 28%. He funds the workers co-op @15% for onward lending to staff members at 18%. According to him, the co-op earns 3% while guaranteeing against default. The staff get the loans cheaper than bank (without the long process) and he relaxes and he gets 15% ROI. He has caught my attention but I'm still assessing potential risks.

2 Likes 1 Share

Re: Investor Prospects 2016 by RedCapChief(m): 8:18pm On Dec 27, 2015
netotse:


When you say 'flip large amounts of forex' you're referring to round tripping right?

@OP
Agriculture is a winner but it requires time (you or someone needs to check up on the investment), got my fingers burnt this year cos I couldn't keep visiting the farm, planning to try processing instead of producing in 2016(one a small scale though)

This entertainment that you're saying has k-leg if you ask me, it's too much of an art to be predicted.

Agriculture is a definite winner and, yes, processing is more lucrative but capital intensive. The market for properly processed cassava or palm oil is huge. That will probably be my focus in the long term.
The k-leg in entertainment is for the artistes trying to break in. From the business point, I don't think the risk is that great. It just requires time and concentration in any area you choose. Even the small record labels seem to be breaking even. Entertainers are always looking for people to package them. It is rarely about talent but presentation

1 Like 1 Share

Re: Investor Prospects 2016 by netotse(m): 11:10pm On Dec 27, 2015
RedCapChief:


Agriculture is a definite winner and, yes, processing is more lucrative but capital intensive. The market for properly processed cassava or palm oil is huge. That will probably be my focus in the long term.
The k-leg in entertainment is for the artistes trying to break in. From the business point, I don't think the risk is that great. It just requires time and concentration in any area you choose. Even the small record labels seem to be breaking even. Entertainers are always looking for people to package them. It is rarely about talent but presentation

I'm with you on the processing cassava bit, visited a few farms last year, I'm starting small though. I'm considering a tolling arrangement so I don't have to face the larger part of the market risks.

You also have a point on the entertainers looking for people to package them, a friend ran a record label(with a partner) for a couple of years, they had one artiste that was on the rise, what killed it was when the NBC (broadcast commission) banned their newly shot video, they had spent a lot on it and things became tense with the artiste, I have neither the temperament or money to deal with all these showbiz people.

YoungExec:

1.
I would never get involved in Agro at the production level. Too much room for losses. there is a huge Nigerian / African Diaspora in Western countries and I hear ABX and Arik have partnered to export NG Agro to Europe. Also NEXIM bank is looking like they have woken up to finance Nigerian exporters.
2.
Regarding entertainment, I still have question marks due to the volatility of the industry. But you can't ignore the forex potential in it o. Especially when you target the African diaspora in the west.
3.
A friend is trying to convince me to go into consumer finance. He argues that the fed govt will never default on paying salaries (not so confident about pensions). So fed workers often take loans from banks at 24 - 28%. He funds the workers co-op @15% for onward lending to staff members at 18%. According to him, the co-op earns 3% while guaranteeing against default. The staff get the loans cheaper than bank (without the long process) and he relaxes and he gets 15% ROI. He has caught my attention but I'm still assessing potential risks.
I will take points 1 and 2 together, the forex potential for Agric is far higher than showbiz, I know guys that currently export products and they're doing good. I'm not clear on how you would harness the folks in diaspora to earn forex from entertainment (it's possibly cos my thinking is too rigid to consider entertainment as an investment tongue).

On the consumer financing bit(this is way above my weight though), from what I know about cooperatives (not involved in them), very few of them are run properly, I wouldn't feel comfortable having my money guaranteed by a coop especially in these days of vanishing gratuities. You also want to be careful about businesses linked to govt, they can haunt you from all sorts of angles if things go south.

@Redcapchief and @youngexec
meeennnnn...the koko of the matter is that you need to be creating value in 2016.
Re: Investor Prospects 2016 by coolio2014(m): 7:19am On Dec 28, 2015
Very good ideas on here! Real Estate business is also quite good though albeit the time to break even...
Re: Investor Prospects 2016 by YoungExec: 11:57am On Dec 28, 2015
coolio2014:
Very good ideas on here! Real Estate business is also quite good though albeit the time to break even...

Exactly. For me, Real Estate is a passive income source. If it's your primary income source, you can't handle the wait and will always sell @ subprime due to impatience. So far, I do empty plots. Over time I've found that undeveloped plots are much more valuable than building for commercial or residential. I detest residential real estate investment. Such a fund sink.

Now that the economic outlook is bleak, you would be surprised that real estate prices are still holding steady. I know someone that just sold his undeveloped plot at Miriam babangida way in asaba for 110 million. Land he bought for 9 million years ago. Empty undeveloped has a lot of appeal.

Average real estate gestation period is nearly 2 years (if you want to get good profit). And that is in the event that you did not fall victim to fraudsters.

2 Likes

Re: Investor Prospects 2016 by ncolumella(m): 11:11pm On Dec 28, 2015
Dear Investors,

Undoubtedly a vast investment potential exists in the domestic liquefied petroleum gas filling sub-sector of the Oil & Gas Industry in Nigeria. A large proportion of the middle and upper socio-economic class of people depend on gas for cooking purposes. So are industries, government establishments, hotels, hospitals, restaurants, bakeries e.t.c

● Today, Nigeria consumes about 250, 000MT per annum and we have about 230 LPG refilling plants and 7,000 retailing outlets.  More succinctly, a captive market of over 165 million people makes investment in LPG industry viable since one of the challenges the Federal Government as well as LPG operators are forced to grapple with is how to market the use of cooking gas in Nigeria.

● With less than one kilogram me per capita consumption, Nigeria ranks among the lowest liquefied petroleum gas consuming states in Africa despite its huge gas resources. It Is currently estimated that only 30% of our population uses LPG as a cooking energy while the remaining 40% uses Kerosene and 30% uses Fire wood.

● The current General Manager of the NNPC and the Minster of state for petroleum Mr Ibe Kachiukwu has stated on various occasssion that in 2016, the use of LPG would be enforced. He also stated that free LPG cylinders would be given to all Nigerians. The budget for 2016 does not include subsidy for kerosene. It Is therefore evident that the use and demand of LPG would double in 2016 and now is the right time to make investments in the sector.


THE OPPORTUNITY IN COOKING GAS BUSINESS
======================================
LPG cylinders refilling plants would be needed to bring closer gas to the consumers and retailers. We manufacture Mini LPG cylinder refilling plants here in Nigeria. This plants are mobile and easy to operate. This type of refilling plants requires very small piece of land/space and they can be easily relocated to a more profitable location. The plants also have over 20years operating life span.

This mini plants are usually between 2.5tons- 10tons
● 1ton of gas= 80× (12.5kg cylinder)

Our storage tanks on the plants are first grade used Holland tanks with over 20years life span and they have been pressure tested and certified safe. The skid plants are well built, tested and commissioned before sale/delivery


COST:

Cost of the Our mini plants varies depending on the tank size

● 2.5ton mini plant : N4million
● 5ton mini plant: N7million
● 10ton stationary plant: N11million

1ton of gas= 80× (12.5kg cylinder)

ACCESSORIES:

Once you purchase of our plants it comes with:

1. ×××× metric tonnes tank
2. Corken Fire proof ump
3. Three filling heads
4. Weighing scale and pressure gauge
5. Return Hose
6. 2 fire extinguisher
7. 2 safety goggles, boots and overall
8. Branding
9. HSE training
10. free Haulage anywhere in Nigeria

BENEFITS:

● Easy to maintain and manage
● Very low operational cost
● Location of plant can be changed/relocated at will
● Gives value for money and highly profitable
● Safe
● small portion of land/space needed
● Plants can be located closer to LPG consumers unlike stationary LPG

PROFITABILITY

80 (12.5kg) cylinders makes 1ton of gas
So a 2.5ton skid plant is 200 (12.5kg) cylinder

● Cost off filling a 2.5ton plant is usually between N350-400k (including logistics)
● assuming your operational cost (which includes a generator and one staff) is N50, 000 monthly

● Cost of 12.5kg cylinder is N3000
Sales cost: N3000×200= N600,000
N600,000-400,000= N200,000
N200,000-N50,000= N150, 000

● Profit: N150, 000/2.5tons of gas

● Please note that with your plant sited in a well populated residential area, you can sell 5tons weekly making a profit of N300, 000 weekly. This is a fact base report.

CONCLUSION

We build based on order and deliver within 2week.

Please, email/call us to see images of our mini plants & information

Thank you.

Okebugwu Ikechukwu Williams

Columella Nigeria Company
Call/Whatsapp: 08029716876
Email: columellanigeria2010@gmail.com

Re: Investor Prospects 2016 by ncolumella(m): 11:16pm On Dec 28, 2015
● Please visit the nairaland link below to see more information on investing in this highly profitable and easy gas business.

● All you need to provide is a very tiny space (Land) & and a small 2.5kva generator like the image you see below (2.5tons plant) and select/order any of our mini plant capacity ranges and we would build and deliver to your site with 2weeks.

● 2.5ton mini plant (200cylinders) : N4million
● 5ton mini plant (400cylinders): N7million
● 10ton stationary plant (800cylinders): N11million

www.nairaland.com/2807449/turn-small-land-very-profitable

Re: Investor Prospects 2016 by DonX001: 1:19am On Dec 31, 2015
YoungExec:
Feel free to drop your likely investing route for 2016. Let's share ideas.
So far:
1. Importation: Not attractive due to exchange rate and Forex restrictions
2. T.Bills: Unnattractive due to very low ROI
3. FD: Unnattractive, Banks are doing low single digits
4. Manufacturing: Unattractive as old issues (no power, high interest rates) joined new issues (Forex restrictions, low income per capita, inflation)
5. Stocks: I already took a hammering in 2015, watched my portfolio lose 20% value across board both blue chip and no chip cry
6. corporate debt: Unnattractive due to current economic headwinds, plus govt policy uncertainty.
7. Oil & Gas: Unnattractive, stocks down due to ever falling oil prices (plus Iran is about to ramp up production and add to the wahala) plus uncertain govt oil and gas policy.

Brothers & Sisters in the Lord I am beginning to look at Entertainment (Africa wide consumption) and Agriculture (Processing for export). But sadly, most coys in these fields don't have solid investable structures.

My ogas, let us look into 2016 and proffer solution for at least 15% ROI. I can't be the only one seeing this bleak outlook.

Wow...This your analysis na wa o....but true.
Looks like it's basically between real estate and agricultural processing like you say.
I would rather place my bet with agricultural processing.
It's capital intensive but I think the scale of operations
can be planned to fit available resources. One can start on a small scale and expand later.
I've decided to look deeper into it in this coming 2016.
Re: Investor Prospects 2016 by YoungExec: 1:09am On Jan 01, 2016
DonX001:


Wow...This your analysis na wa o....but true.
Looks like it's basically between real estate and agricultural processing like you say.
I would rather place my bet with agricultural processing.
It's capital intensive but I think the scale of operations
can be planned to fit available resources. One can start on a small scale and expand later.
I've decided to look deeper into it in this coming 2016.

It's not so capital intensive depending on which area of processing you go into. For example we all know the rice value chain and how capital intensive it is to process paddy to polished rice.
I'm looking more into 'packaging' not 'processing'.

local farmers have no clue about the laid down pre-shipment standards of foreign countries with regard to African Argo export. Recently I read that Europe banned Nigerian beans due to high chemical residue content of the beans due to the kind of pesticides used in the beans production in Nigeria.

Using another analogy, for instance, in Abu Dhabi, passengers flying to the U.S. go through US immigration right there in Abu Dhabi so when they arrive US, they do so as domestic travelers i.e without further checks.

Hence I am looking at pre-shipment packaging and standardization of Argo produce. Unlike processing activities which rightly may be capital intensive, packaging costs far less as you are working more or less with the raw produce.
Re: Investor Prospects 2016 by netotse(m): 6:48am On Jan 01, 2016
YoungExec:


It's not so capital intensive depending on which area of processing you go into. For example we all know the rice value chain and how capital intensive it is to process paddy to polished rice.
I'm looking more into 'packaging' not 'processing'.

local farmers have no clue about the laid down pre-shipment standards of foreign countries with regard to African Argo export. Recently I read that Europe banned Nigerian beans due to high chemical residue content of the beans due to the kind of pesticides used in the beans production in Nigeria.

Using another analogy, for instance, in Abu Dhabi, passengers flying to the U.S. go through US immigration right there in Abu Dhabi so when they arrive US, they do so as domestic travelers i.e without further checks.

Hence I am looking at pre-shipment packaging and standardization of Argo produce. Unlike processing activities which rightly may be capital intensive, packaging costs far less as you are working more or less with the raw produce.

You should look check these guys out http://pip.coleacp.org/en, they are trying to do some work in that space, they've held a couple of trainings in naija
Re: Investor Prospects 2016 by DonX001: 9:43am On Jan 01, 2016
YoungExec:


It's not so capital intensive depending on which area of processing you go into. For example we all know the rice value chain and how capital intensive it is to process paddy to polished rice.
I'm looking more into 'packaging' not 'processing'.

local farmers have no clue about the laid down pre-shipment standards of foreign countries with regard to African Argo export. Recently I read that Europe banned Nigerian beans due to high chemical residue content of the beans due to the kind of pesticides used in the beans production in Nigeria.

Using another analogy, for instance, in Abu Dhabi, passengers flying to the U.S. go through US immigration right there in Abu Dhabi so when they arrive US, they do so as domestic travelers i.e without further checks.

Hence I am looking at pre-shipment packaging and standardization of Argo produce. Unlike processing activities which rightly may be capital intensive, packaging costs far less as you are working more or less with the raw produce.

Oh ok, that makes sense.
Definitely would be easier to enter through that angle.
One can eventually expand to actual processing when the resources are right, or simply remain and diversify to more products in the packaging angle.

Men, I've gotta do a lot of research on this agro processing/export thingy this January.

Really hope I can fit it in with what's on my plate already.
Re: Investor Prospects 2016 by Ademat7(m): 12:52am On Jan 02, 2016
ncolumella:
● Please visit the nairaland link below to see more information on investing in this highly profitable and easy gas business.

● All you need to provide is a very tiny space (Land) & and a small 2.5kva generator like the image you see below (2.5tons plant) and select/order any of our mini plant capacity ranges and we would build and deliver to your site with 2weeks.

● 2.5ton mini plant (200cylinders) : N4million
● 5ton mini plant (400cylinders): N7million
● 10ton stationary plant (800cylinders): N11million

www.nairaland.com/2807449/turn-small-land-very-profitable
pls boss I will like to hear ur view about corpers taking HSE course because am skeptical about the short duration of the course
Re: Investor Prospects 2016 by tunene66: 6:58pm On Jan 02, 2016
chukwuwike2ny:
You can get 15%(10%Principal+5%ROI) monthly for 10Months...

Full insurance and assurance... cool

For more info:
08067233120
08111595550 - whatApp
2895029C - BB Pin
Click2ny@gmail.com

Hmmm. Hope this no b scam o. Please beware
Re: Investor Prospects 2016 by ELGREF(m): 8:01pm On Jan 02, 2016
ncolumella:
● Please visit the nairaland link below to see more information on investing in this highly profitable and easy gas business.

● All you need to provide is a very tiny space (Land) & and a small 2.5kva generator like the image you see below (2.5tons plant) and select/order any of our mini plant capacity ranges and we would build and deliver to your site with 2weeks.

● 2.5ton mini plant (200cylinders) : N4million
● 5ton mini plant (400cylinders): N7million
● 10ton stationary plant (800cylinders): N11million

www.nairaland.com/2807449/turn-small-land-very-profitable
nice write up,good purposal, I saw 200 cylinder, 400cylinder and 800cylinder,please of which kg?you know we have different size of cylinder, some can come with 10kg,5g,etc,plss explain.
Re: Investor Prospects 2016 by Cmeo(m): 11:55pm On Jan 03, 2016
YoungExec:
Feel free to drop your likely investing route for 2016. Let's share ideas.
So far:
1. Importation: Not attractive due to exchange rate and Forex restrictions
2. T.Bills: Unnattractive due to very low ROI
3. FD: Unnattractive, Banks are doing low single digits
4. Manufacturing: Unattractive as old issues (no power, high interest rates) joined new issues (Forex restrictions, low income per capita, inflation)
5. Stocks: I already took a hammering in 2015, watched my portfolio lose 20% value across board both blue chip and no chip cry
6. corporate debt: Unnattractive due to current economic headwinds, plus govt policy uncertainty.
7. Oil & Gas: Unnattractive, stocks down due to ever falling oil prices (plus Iran is about to ramp up production and add to the wahala) plus uncertain govt oil and gas policy.

Brothers & Sisters in the Lord I am beginning to look at Entertainment (Africa wide consumption) and Agriculture (Processing for export). But sadly, most coys in these fields don't have solid investable structures.

My ogas, let us look into 2016 and proffer solution for at least 15% ROI. I can't be the only one seeing this bleak outlook.

Boss,
Compliment of the season. I am happy to see you back here. I sent you PMs but there was no response.

I am yet to know the definite direction of business in this new year but I believe production of education materials will still move in the market. I have an idea of an education material which I would like to go into its production but the idea is open for other interested investor.

If you would like to know more about the business idea, let me know so that I can share it with u and we could partner together because I can't finance it all alone. I am sure it is an idea that will bring profit.

Once again, I thank you for support you gave me last year, if not for your timely advises, I can't imagine what could happen to me in the business world. Please I will need u to be there for me again this year.

Regards,
John

1 Like

Re: Investor Prospects 2016 by YoungExec: 11:16am On Jan 04, 2016
Cmeo:


Boss,
Compliment of the season. I am happy to see you back here. I sent you PMs but there was no response.

I am yet to know the definite direction of business in this new year but I believe production of education materials will still move in the market. I have an idea of an education material which I would like to go into its production but the idea is open for other interested investor.

If you would like to know more about the business idea, let me know so that I can share it with u and we could partner together because I can't finance it all alone. I am sure it is an idea that will bring profit.

Once again, I thank you for support you gave me last year, if not for your timely advises, I can't imagine what could happen to me in the business world. Please I will need u to be there for me again this year.

Regards,
John

Brother!
Happy New Year. Great to hear from you! Sorry I have issues with my mail. How did it go, I hope everything went well and you finally got paid. My brother, I am still monitoring Nigeria's economic outlook from afar. The uncertainty is not good for business as you can see from my initial post.

People I've talked to are either pulling out or threading with caution.
Re: Investor Prospects 2016 by Solumtoya: 6:59pm On Jan 05, 2016
Currently considering looking into the transportation industry. With the advent and success of Uber in Nigeria, there are good prospects. Once I can raise the funds, I should try those waters this month and pray God it sings good songs, but if there are better ones, one might still plunge in too.
Re: Investor Prospects 2016 by P0rtHarc0urtB0y: 5:54pm On Jan 16, 2016
YoungExec:
Feel free to drop your likely investing route for 2016. Let's share ideas.
So far:
1. Importation: Not attractive due to exchange rate and Forex restrictions
2. T.Bills: Unnattractive due to very low ROI
3. FD: Unnattractive, Banks are doing low single digits
4. Manufacturing: Unattractive as old issues (no power, high interest rates) joined new issues (Forex restrictions, low income per capita, inflation)
5. Stocks: I already took a hammering in 2015, watched my portfolio lose 20% value across board both blue chip and no chip cry
6. corporate debt: Unnattractive due to current economic headwinds, plus govt policy uncertainty.
7. Oil & Gas: Unnattractive, stocks down due to ever falling oil prices (plus Iran is about to ramp up production and add to the wahala) plus uncertain govt oil and gas policy.

Brothers & Sisters in the Lord I am beginning to look at Entertainment (Africa wide consumption) and Agriculture (Processing for export). But sadly, most coys in these fields don't have solid investable structures.

My ogas, let us look into 2016 and proffer solution for at least 15% ROI. I can't be the only one seeing this bleak outlook.

Followed you here boss! grin


Well 2016, for me, i intend to kick start a 100-hectare cocoa plantation project I've been nurturing since 2013. Estimated period of harvesting is 18months. With 100 hectares hybrid cocoa plantation, we would churn out an average of 250 metric tons of dried cocoa beans per annum (exportable quantity) @ current rate of $3,325/ton. The demand for chocolate is ever increasing and with the diminishing number of coca farmers we do not anticipate the price reducing unlike that of crude oil. The plantation will be the single largest cocoa farm in Nigeria. It will also ramp up Nigeria output marginally in the global market, create over 100 job opportunities and increase our FX earnings.

I was raised by a cocoa farmer in Ondo State. So nothing is new. We have approached the state government and processes are underway for land allocation. Our feasibility study is being studied by Bank of Agriculture for financial assistance as we project a capital outlay of N100m. We are also discussing with Cocoa Research Institute of Nigeria (CRIN) for free seedlings and fertilizers. We are equally discussing with Nestle and a merchant (buyer) in Switzerland.

3 Likes

Re: Investor Prospects 2016 by YoungExec: 10:37pm On Jan 16, 2016
P0rtHarc0urtB0y:


Followed you here boss! grin


Well 2016, for me, i intend to kick start a 100-hectare cocoa plantation project I've been nurturing since 2013. Estimated period of harvesting is 18months. With 100 hectares hybrid cocoa plantation, we would churn out an average of 250 metric tons of dried cocoa beans per annum (exportable quantity) @ current rate of $3,325/ton. The demand for chocolate is ever increasing and with the diminishing number of coca farmers we do not anticipate the price reducing unlike that of crude oil. The plantation will be the single largest cocoa farm in Nigeria. It will also ramp up Nigeria output marginally in the global market, create over 100 job opportunities and increase our FX earnings.

I was raised by a cocoa farmer in Ondo State. So nothing is new. We have approached the state government and processes are underway for land allocation. Our feasibility study is being studied by Bank of Agriculture for financial assistance as we project a capital outlay of N100m. We are also discussing with Cocoa Research Institute of Nigeria (CRIN) for free seedlings and fertilizers. We are equally discussing with Nestle and a merchant (buyer) in Switzerland.


I'm please you did your background work on this, Agriculture is definitely looking good now that oil has tanked. Some things came to mind that may be worth your consideration:
- as an incentive to your prospective Swiss buyer, research NEXIM bank's export promotion incentives.
- when dealing with State govt, wash your eyes with hypo grin.
- try to engage and key into the federal govt's program. You can achieve this by also looking for ways to support existing cocoa famers. Hence you transcend to processing cocoa from not just your plantation but also buy product from other farmers (thus encouraging them). This will really attract support to you because the multiplier effect of your business is felt through direct and numerous indirect jobs.

2 Likes

Re: Investor Prospects 2016 by netotse(m): 7:01am On Jan 17, 2016
P0rtHarc0urtB0y:


Followed you here boss! grin


Well 2016, for me, i intend to kick start a 100-hectare cocoa plantation project I've been nurturing since 2013. Estimated period of harvesting is 18months. With 100 hectares hybrid cocoa plantation, we would churn out an average of 250 metric tons of dried cocoa beans per annum (exportable quantity) @ current rate of $3,325/ton. The demand for chocolate is ever increasing and with the diminishing number of coca farmers we do not anticipate the price reducing unlike that of crude oil. The plantation will be the single largest cocoa farm in Nigeria. It will also ramp up Nigeria output marginally in the global market, create over 100 job opportunities and increase our FX earnings.

I was raised by a cocoa farmer in Ondo State. So nothing is new. We have approached the state government and processes are underway for land allocation. Our feasibility study is being studied by Bank of Agriculture for financial assistance as we project a capital outlay of N100m. We are also discussing with Cocoa Research Institute of Nigeria (CRIN) for free seedlings and fertilizers. We are equally discussing with Nestle and a merchant (buyer) in Switzerland.

You should make sure you insure your crops are insured, http://www.naic.gov.ng/home since you aren't a new comer I guess there's no need to tell you to choose your pesticides wisely so you don't enter one chance.

1 Like

Re: Investor Prospects 2016 by P0rtHarc0urtB0y: 11:32am On Jan 17, 2016
YoungExec:


I'm please you did your background work on this, Agriculture is definitely looking good now that oil has tanked. Some things came to mind that may be worth your consideration:
- as an incentive to your prospective Swiss buyer, research NEXIM bank's export promotion incentives.
- when dealing with State govt, wash your eyes with hypo grin.
- try to engage and key into the federal govt's program. You can achieve this by also looking for ways to support existing cocoa famers. Hence you transcend to processing cocoa from not just your plantation but also buy product from other farmers (thus encouraging them). This will really attract support to you because the multiplier effect of your business is felt through direct and numerous indirect jobs.


Yes boss!!!

But na wa 4 u o!!! shocked Your business acumen cuts across all field. I didn't mention the NEXIM export incentives cuz I felt its an icing on the cake for latter days. Thanks for the heads-up as per carrying along other farmers. And concerning "shinning my eyes when dealing with state govt.. lipsrsealed..there're some things I can't say hereon.

Like the adage goes; they don't tell a blind man its about to rain.....I was into sales and supply of mud fluids (drilling chemicals) to oil & gas exploration companies. I was lucky to opt out early enough when I started noticing downward pricing of products and incessant delay of my receivables by my employers. I quickly moved into contract. Federal(NDDC) and state (Rivers). I completed a solar-powered water scheme for NDDC since June last year and as we speak I'm yet to get my payment. What am I saying? Agriculture is the way right now - if one gets it right tho'.



netotse:

You should make sure you insure your crops are insured, http://www.naic.gov.ng/home since you aren't a new comer I guess there's no need to tell you to choose your pesticides wisely so you don't enter one chance.


We contacted an independent researcher @ International Institute of Tropical Agriculture (IITA), Ibadan who's trying to match the pesticides that best suite the particular hybrid seedlings.

As per insurance- see one of the reasons why one needs to share? An associate was with me yesterday and he wasn't comfortable with me sharing a project in the pipeline on a public forum. Now come to think of it! I never looked at the angle of insurance. God bless you for the info sir
Re: Investor Prospects 2016 by Johnrake69: 1:22pm On Jan 17, 2016
Happy new year to the house... @youngExec
Thank you for this thread. I just came across it and am already feeling blessed cheesy Please I have been trying to research on agro products with respect to packaging and exportation. My cousin that has a permanent residence visa in Holland is already in touch with a company over there that buys products like onions, carrot, potatoes etc. Its actually a learning process for we both. An advice from you will really go along way. Thanks for the anticipated response.
Re: Investor Prospects 2016 by lilreese: 12:12pm On Jan 18, 2016
2016 is a tough year
Re: Investor Prospects 2016 by walexy14(m): 1:41pm On Jan 18, 2016
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Re: Investor Prospects 2016 by DonX001: 12:16am On Jul 05, 2016
YoungExec:
Feel free to drop your likely investing route for 2016. Let's share ideas.
So far:
1. Importation: Not attractive due to exchange rate and Forex restrictions
2. T.Bills: Unnattractive due to very low ROI
3. FD: Unnattractive, Banks are doing low single digits
4. Manufacturing: Unattractive as old issues (no power, high interest rates) joined new issues (Forex restrictions, low income per capita, inflation)
5. Stocks: I already took a hammering in 2015, watched my portfolio lose 20% value across board both blue chip and no chip cry
6. corporate debt: Unnattractive due to current economic headwinds, plus govt policy uncertainty.
7. Oil & Gas: Unnattractive, stocks down due to ever falling oil prices (plus Iran is about to ramp up production and add to the wahala) plus uncertain govt oil and gas policy.

Brothers & Sisters in the Lord I am beginning to look at Entertainment (Africa wide consumption) and Agriculture (Processing for export). But sadly, most coys in these fields don't have solid investable structures.

My ogas, let us look into 2016 and proffer solution for at least 15% ROI. I can't be the only one seeing this bleak outlook.


Man, its half year already...so fast.
Time for taking a pause to reevaluate and analyze our steps so far.
What did you end up investing in this 2016?
Agro processing (packaging) like you were considering...or entertainment....or just simply holding on to funds and looking to see where the Buhari+dollar+oil price drama finally settles.
And has it worked out like you planned?
What are your plans to maximize the remaining half of the year?
Re: Investor Prospects 2016 by YoungExec: 4:25pm On Jul 05, 2016
DonX001:



Man, its half year already...so fast.
Time for taking a pause to reevaluate and analyze our steps so far.
What did you end up investing in this 2016?
Agro processing (packaging) like you were considering...or entertainment....or just simply holding on to funds and looking to see where the Buhari+dollar+oil price drama finally settles.
And has it worked out like you planned?
What are your plans to maximize the remaining half of the year?

***Sigh cry***
So fast o. My greatest frustration this year has not been the economic outlook but the uncertainty caused by lack of clear govt policies. No one knows what they are really up to 13 months into their administration. The uncertainty means most people are not willing to invest.
1. Journey so far:
I tried the Agro processing for export and found that my prices ended up higher than could successfully compete on the international market due to my overhead costs included power generation, road transport and high export processing costs. At the international market, I was competing with sellers who enjoyed subsidies on power, ultra low cost rail transport and low export processing charges. Once I found I could not compete, I had to get very creative. You can't come to the international market and cry expecting them to pity and buy your stuff at higher cost simply because your cost of production is higher. It's a free market and competition is fierce.
I didn't bother about entertainment in Nigeria but invested in Africa wide entertainment. With the crisis in the Nigerian economy many people can barely eat let alone pay to be entertained. Many people can't afford fuel at 145 and have deactivated their pay tv services.
Finally, in Nigeria I'm still hedging until I get a clear sense of govt's policy direction. For me this is not a good time to invest. I almost did but the resurgence of millitancy in the Niger Delta slapped me back to reality.
2. Rest of the Year:
For H2 2016, I intend to seriously look beyond Nigeria (at least until I figure out what govt is put to), I'm looking at mining opportunities in African countries especially Uganda.
The pain we are going through now is self inflicted. A clear policy direction by govt instill confidence and encourages investment however when the policy is not clear, investors turn to bears.
Still I am highly adaptive as I'm never one to give excuses.

Let me know how it's been for you so we can rub minds for the 2nd half.

2 Likes

Re: Investor Prospects 2016 by newacca: 6:45pm On Jul 05, 2016
Real Estate. Abule sowo. smiley

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