There is no doubt that in Nigeria today, there is a growing interest and enthusiasm particularly among youths to go into agriculture and agribusiness.

Unlike what had been obtainable in the past, where most youths do not see agriculture as a veritable means of income generation and with the long indoctrinated myth that farmers are poor, dirty, rural dwellers and an agriculture not seen as a means to sustainable income generation and wealth creation. Today youths in Nigeria are embracing Agriculture with a much redefined knowledge, passion and enthusiasm.

Every day, I come across a teaming number of youths and young people who want to go into agriculture and are ready to embrace agriculture and agribusiness as a life career and means to wealth creation.

In my interaction with most of the youths, one question has always stood out among their numerous questions and obviously perceived limitation to the realization of their agribusiness dreams. This question and reoccurring decimal has always been the issue of finance and funding.

How do I get funds to go into agriculture?

I don’t have money!

I am looking for grants!

How can the government fund my agribusiness dreams?

Do you know how I can obtain loan from x,y,z bank to establish my farm?

I don’t have collateral!

Well, the above statements summarize most of the funding and finance questions on the lips of youths today. Very likely these could be the questions also in your mind right now. For every one already in agriculture, chances are that in one way or the other, at one point or the other, that you also asked these questions.

More so, one thing always stands sure in the mind of most of the youths who ask these questions. It is that fact that as far as they are concerned, the only mountain standing on their way to zillion riches in agribusiness and agriculture is lack of funding and finance.

To most of them, it is not experience; neither could it be right education and knowledge of their adopted agribusiness field. It could also never be lack or insufficient financial and investment skills. Well, to them it could also not be about not having proper and well researched market information. It is simply funding; lack of funding, no money!

Well, I beg to differ. Yes, funding is a critical challenge to youth empowerment through agriculture. But it is just one of the problems. It is not the strongest barrier. It is not the first demon that needs to be casted out on your way to realizing your agribusiness dreams.

Let’s look at a real life example. Chidera is a young graduate of Engineering, from one of the tertiary institutions. He has just finished his NYSC. Just three months ago. He walks into my office, seeking for how to obtain funding to go into cashew nut trading and business. He explains to me how much of a guru he is in cashew and how the only thing standing in his way is funds.

Well, as luck may have, I had a friend who just got back from the states and wanted to also invest about $10,000, in agribusiness and have me manage it. He also happened to be around when Chidera got in. He was so moved by the young man’s zeal that he said I should consider working with him.

I turned to him and said ok. Your lucky day has come. So I demanded if I could have his business plan. Business plan? Business plan? Yes … business plan I retorted. Your business plan for the cashew business. He replied that he had none and actually do not know how to come up with one on the immediate. He said he had also never written one before.

I got more interested, so I asked what’s the plan. Who are we selling the cashew nuts to? “Buyers are everywhere” he replied. “Indians are all over Lagos now, waiting and looking for suppliers” he reaffirmed. I said where in Lagos; “everywhere in Lagos, at the port everywhere” he replied. “Infact we can even export immediately” he continued. I said ok. But do you have an export license? “Not yet” he said. “That’s not a problem, once there is fund, it will be done immediately”

Meanwhile, he only had a business name registered. Not knowledgeable yet to know that export license in Nigeria is only issued to Limited liabilities companies with a three years standing experience.

Well, it didn’t take long before my friend who was willing to invest in him, concluded that he didn’t have the right cashew trading education and knowledge to match his zeal and passion. It was a lost opportunity. Investment opportunity met with lack of investment preparedness and plan.

This story unfortunately is a reflection of what is obtained in most of the youths seeking to embrace agriculture and agribusiness in Nigeria today. From those seeking to delve into poultry farming, fish farming, livestock production, snail farming, food production, export, commodity trading etc.

My advice to you is simple and straightforward. If you are a youth interested in Agribusiness and agriculture in Nigeria; the following might be helpful if you are to be successful in your agribusiness start up dreams;

(1) Identify a given agribusiness field or agriculture chain where you want to be involved. Narrow your interest to a maximum of two. Preferably one.

(2) Start educating yourself about what is obtainable in that field. Attend workshops, attend seminars. Research. Luckily there are lots of free agriculture and farming threads online with free trainings and materials. Attend one on one training sessions.

(3)Get a mentor. Find someone in your chosen field who is doing well. Volunteer to work for free in his farm or agribusiness. Serve under him and learn real time practises and what obtains in a practical world in your field.

(4) Do market research in your field. Look for gaps to be filled. If its cashew for example; seek for opportunities in warehousing, storage, quality testing, packaging, sourcing etc.

(5) Develop a bankable business plan. Have it ready in soft and hard copy. Go through them periodically. Make reviews and additions and keep waiting for opportunity to present it.

(6) Keep yourself informed! Subscribe to agro blogs that can feed you timely information on grants and funding opportunities. Read the news. Identify agro blogs with credible and timely agro information. Stay up to date.

(7) Network with other like minded agro enthusiasts. Be part of an agro- cooperative in your area.

( Look out for opportunities to help others implement their agribusiness projects related to yours.

(9) Continue to stay passionate.

(10) Keep praying!

Written by Chika Okeke.

Chika Okeke is an Agribusiness consultant, farmer and agro blogger. He is the MD/CEO of MARIOK Agro Allied & Farms and the founder of Agro News Nigeria. (www.agronewsng.com)

He can be reached at; chika.okeke@agronewsng.com, 08035044364.

http://www.agronewsng.com/2016/03/why-funding-may-not-be-the-biggest-barrier-to-your-agribusiness-start-up/

Preach!

when I saw this, I just smiled... thanks op

Very true!
Most people do not take time to conduct research into the or proposed line of business. Hence, they end up making costly, but avoidable mistakes. Yours truly is a victim of such

I've learnt from your post. Time to start practicals on what I learnt. @Oga Jasper I hail oo.

Seriously ! you make sense a lot op

agronewsng:

There is no doubt that in Nigeria today, there is a growing interest and enthusiasm particularly among youths to go into agriculture and agribusiness.

Unlike what had been obtainable in the past, where most youths do not see agriculture as a veritable means of income generation and with the long indoctrinated myth that farmers are poor, dirty, rural dwellers and an agriculture not seen as a means to sustainable income generation and wealth creation. Today youths in Nigeria are embracing Agriculture with a much redefined knowledge, passion and enthusiasm.

Every day, I come across a teaming number of youths and young people who want to go into agriculture and are ready to embrace agriculture and agribusiness as a life career and means to wealth creation.

In my interaction with most of the youths, one question has always stood out among their numerous questions and obviously perceived limitation to the realization of their agribusiness dreams. This question and reoccurring decimal has always been the issue of finance and funding.

How do I get funds to go into agriculture?

I don’t have money!

I am looking for grants!

How can the government fund my agribusiness dreams?

Do you know how I can obtain loan from x,y,z bank to establish my farm?

I don’t have collateral!

Well, the above statements summarize most of the funding and finance questions on the lips of youths today. Very likely these could be the questions also in your mind right now. For every one already in agriculture, chances are that in one way or the other, at one point or the other, that you also asked these questions.

More so, one thing always stands sure in the mind of most of the youths who ask these questions. It is that fact that as far as they are concerned, the only mountain standing on their way to zillion riches in agribusiness and agriculture is lack of funding and finance.

To most of them, it is not experience; neither could it be right education and knowledge of their adopted agribusiness field. It could also never be lack or insufficient financial and investment skills. Well, to them it could also not be about not having proper and well researched market information. It is simply funding; lack of funding, no money!

Well, I beg to differ. Yes, funding is a critical challenge to youth empowerment through agriculture. But it is just one of the problems. It is not the strongest barrier. It is not the first demon that needs to be casted out on your way to realizing your agribusiness dreams.

Let’s look at a real life example. Chidera is a young graduate of Engineering, from one of the tertiary institutions. He has just finished his NYSC. Just three months ago. He walks into my office, seeking for how to obtain funding to go into cashew nut trading and business. He explains to me how much of a guru he is in cashew and how the only thing standing in his way is funds.

Well, as luck may have, I had a friend who just got back from the states and wanted to also invest about $10,000, in agribusiness and have me manage it. He also happened to be around when Chidera got in. He was so moved by the young man’s zeal that he said I should consider working with him.

I turned to him and said ok. Your lucky day has come. So I demanded if I could have his business plan. Business plan? Business plan? Yes … business plan I retorted. Your business plan for the cashew business. He replied that he had none and actually do not know how to come up with one on the immediate. He said he had also never written one before.

I got more interested, so I asked what’s the plan. Who are we selling the cashew nuts to? “Buyers are everywhere” he replied. “Indians are all over Lagos now, waiting and looking for suppliers” he reaffirmed. I said where in Lagos; “everywhere in Lagos, at the port everywhere” he replied. “Infact we can even export immediately” he continued. I said ok. But do you have an export license? “Not yet” he said. “That’s not a problem, once there is fund, it will be done immediately”

Meanwhile, he only had a business name registered. Not knowledgeable yet to know that export license in Nigeria is only issued to Limited liabilities companies with a three years standing experience.

Well, it didn’t take long before my friend who was willing to invest in him, concluded that he didn’t have the right cashew trading education and knowledge to match his zeal and passion. It was a lost opportunity. Investment opportunity met with lack of investment preparedness and plan.

This story unfortunately is a reflection of what is obtained in most of the youths seeking to embrace agriculture and agribusiness in Nigeria today. From those seeking to delve into poultry farming, fish farming, livestock production, snail farming, food production, export, commodity trading etc.

My advice to you is simple and straightforward. If you are a youth interested in Agribusiness and agriculture in Nigeria; the following might be helpful if you are to be successful in your agribusiness start up dreams;

(1) Identify a given agribusiness field or agriculture chain where you want to be involved. Narrow your interest to a maximum of two. Preferably one.

(2) Start educating yourself about what is obtainable in that field. Attend workshops, attend seminars. Research. Luckily there are lots of free agriculture and farming threads online with free trainings and materials. Attend one on one training sessions.

(3)Get a mentor. Find someone in your chosen field who is doing well. Volunteer to work for free in his farm or agribusiness. Serve under him and learn real time practises and what obtains in a practical world in your field.

(4) Do market research in your field. Look for gaps to be filled. If its cashew for example; seek for opportunities in warehousing, storage, quality testing, packaging, sourcing etc.

(5) Develop a bankable business plan. Have it ready in soft and hard copy. Go through them periodically. Make reviews and additions and keep waiting for opportunity to present it.

(6) Keep yourself informed! Subscribe to agro blogs that can feed you timely information on grants and funding opportunities. Read the news. Identify agro blogs with credible and timely agro information. Stay up to date.

(7) Network with other like minded agro enthusiasts. Be part of an agro- cooperative in your area.

( Look out for opportunities to help others implement their agribusiness projects related to yours.

(9) Continue to stay passionate.

(10) Keep praying!

Written by Chika Okeke.

Chika Okeke is an Agribusiness consultant, farmer and agro blogger. He is the MD/CEO of MARIOK Agro Allied & Farms and the founder of Agro News Nigeria. (www.agronewsng.com)

He can be reached at; chika.okeke@agronewsng.com, 08035044364.

http://www.agronewsng.com/2016/03/why-funding-may-not-be-the-biggest-barrier-to-your-agribusiness-start-up/

The man barrier to agricultural start-ups is lack of capacity building in the exportation of their products to foreign countries. For a detailed information on this subject, click on the first link on my signature.