Agribusiness is rapidly growing as one of the key industries on both a global and local level. In Nigeria there is a renewed focus on growing the non-oil sector of the economy. The agribusiness sector is experiencing a renaissance with dedicated government policies geared towards encouraging farmers and investors thereby increasing the contribution of the sector to the GDP.

Agribusiness is a kind of dirty business, you have to dig the dirt in order to unearth wealth. This is one of the reasons young people don’t fancy agriculture. Every business can be modernized; with the requisite knowledge and skill, you will find agribusinesses to be highly appealing and lucrative. Below are some of the unique opportunities that exist in the agribusiness sector in Nigeria.

1. Food Processing
Nigeria’s food processing industry is valued at $10 billion. It also provides an estimated 10 million direct jobs. Despite being one of the world’s largest producers of agricultural products, Nigeria has failed to derive maximum benefit from the industry.

Most of the food produced in Nigeria do not make it to the market. Most often the food crops are damaged before reaching the final consumer. This is due to the lack of adequate processing capacity in the the Nigerian Agribusiness sector.

A robust food processing sector also enhances the development of industries utilizing produce such as rice, maize, oilseeds, fruits, vegetables and sugarcane. It also increases the seasonal availability of foods and extends their shelf life.

Opportunities in Food processing include:

Rice milling:
Rice milling is the process of removing rice hulls and bran’s from paddy grains to produce polished rice. This unique grain helps sustain most Nigerian families. It is life for thousands of millions of people.

It is estimated that Nigeria’s rice consumption is projected to reach 35 million tonnes by 2050, from five million tonnes, rising at the rate of seven per cent yearly.

There is high demand for rice in Nigeria. With a population of over 180 million people and an estimated national population growth rate of 5.7% per annum, an average economic growth rate of 3.5% per annum in the past five {5} years, Nigeria has a large market for rice.

Local rice farmers across Nigeria are in need of modern rice milling infrastructures, from parboiling to drying to threshing to milling, polishing and packaging. Most of the local rice produced in these rural areas do not have visual appeal and most often ridden with stones.

There are so many rice producing corridors across the different geopolitical zones in Nigeria, look for any of the places and make research about setting up a rural rice milling facility that will serve local farmers. You will make a lot of profit and while reducing food insecurity in the country.

If you have the capital, you can also set up a manufacturing plant and process and your own branded rice.

Tomato paste manufacturing
Nigeria is currently the second largest producer of fresh tomatoes in Africa, producing 10.8% of fresh tomatoes in the region. Globally, the country is the 14th largest tomato producer with 2.3 million tonnes in 2016, .

In 2017, about 45% of fresh tomatoes produced annually was lost . The post-harvest losses can be attributed to poor supply chain management such as inefficient storage facilities and poor transportation systems. As a result, in 2016 and 2017, Nigeria imported tomato paste estimated at USD 360m annually .

Nigerians consume a lot of Tomato paste daily and most of them are imported. Nigeria is one of the biggest market in Africa, the opportunity to grab a share of the market is enormous.

Cassava Starch Production
Cassava is the most important root crop in Nigeria. Nigeria is one of the highest producers of cassava in the world. Cassava is normally processed into Garri for consumption. The opportunity of processing cassava into starch and flours is great.

Apart from being a staple crop in both rural and urban household’s cassava is a major source of income to cassava farmers and processors in the rural areas.

Cassava alone contributes about 45% of agricultural GDP in Nigeria for food or domestic purposes but its industrial processing and utilization has been very limited.

Currently, the country produces about 40,000,000 tonnes of the commodity and due to the desire of the federal government to reduce import dependency and conserve of scare foreign exchange, there is national programme aimed at increasing the production of cassava starch as a alternative to corn starch.

It has been established through research that cassava starch has a lot of demand in the textile, oil drilling, pharmaceuticals, food and beverage industries.

The demand for cassava starch in Nigeria is high. The driving force behind the demand is the federal government policy on cassava starch substitution for corn starch.

The nation’s annual starch demand of over 250,000 tons with a market size of $240m is met by importation of corn starch. The market for cassava is huge and the government is creating a lot of opportunities for people willing to invest in starch manufacturing.

Fruit juice and drink production
Nigeria is rich in fruits from oranges, banana, pineapples, mangoes etc. Nigerians consume a lot of drinks on a daily and you can always get a share if the enormous market.

Fruit juice is a liquid that is naturally contained in fruits. It is extracted by mechanically squeezing or macerating the fruits. It is produced and consumed for its refreshing character, nutritional benefits and as a good source of instant energy. They are natural staple food of man containing essential nutrients in adequate proportions. Fruits are excellent sources of minerals, vitamins and enzymes. They are easily digested and bring about a cleansing effect on the blood and the digestive tract.

The annual national demand for fruit juices is presently estimated at 550 million litres, but the current supply is estimated at 135 million litters which represent less than 25% of the demand, according to the Raw Material and Research Development Council (RMRDC).

Most popular brands of fruit juices in the Nigerian markets today are: Frutta, Edge, 5 Alive, Chivita, Fumman, Dansa, Fan Juice, Chi Exotic, Lloyd’s fruit squeeze, Dudu, Cyway natural drink, etc. Common packaging is tetra pak, can, bottle (plastic and glass) and pouches.

2. Food packaging
The Nigerian Packaging industry, one of the fastest growing sector has taken great strides since its evolution a few decades ago. It encompasses almost every product category- from FMCG, food and beverages to pharmaceuticals and personal care.

Last year Nigerian imports of Food Processing and Packaging machinery increased over 20% to €331.6 million. With this current growth rate, the concept: ‘Made-In- Nigeria’ is a positive outlook and encouraging measures for the industry, mainly attracting international investment.

Nigeria certainly has a lot of branding and packaging issues. Groundnuts and cashew nuts sold in bottles can be packaged, branded and sold for more price. So many people are already taking the lead in plantain and potato chips packaging.

Set up a firm that help local businesses to package and brand their businesses.

In this digital age, presentation matters a lot if you are going to get the full value for your product.

3. Agribusiness services
The Nigeria service sector very huge. It accounts for 30% of the GDP. The service sector is dominated by Oil, Construction, real estate, mining and quarrying. Agribusiness service is rare in Nigeria whereas the market is huge for an innovative startup to pioneer the industry.

This is one of the most under developed sectors in the Nigerian economy. Farmers and other agribusiness owners need a lot of services which might include crop specialist, veterinary, equipment services.

The lack of Agribusiness services companies is one of the reasons why the agricultural sector in Nigeria is under developed.

By helping Farmers Market their farm produce through and online market place e-commerce site or helping them find buyers for a fee, you are offering an service. Most intending farmers need help with getting farm land, farm inputs and other technical assistance required to run a successful agribusiness.

Farmcrowdy – a Nigerian digital agritech startup is revolutionizing the local agriculture sector by connecting small-scale farmers with Nigerian sponsors from locally, from the US and UK who invest in farm cycles. Farmcrowdy in 2017 closed on a $1 Million seed investment round from Cox Enterprises, Techstars Ventures, Social Capital, Hallett Capital and Right-Side Capital; as well as angel investors Tyler Scriven, Michael Cohn, Josephine Group, FC Agro Allied SPV and Dr. Christof Walter.

There is enormous opportunity in this sector ; just be innovative enough.
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