₦airaland Forum

An open letter to Former VP Atiku Abubakar on cattle ranching

Good day to you sir.
I once saw a video of you on social media talking about your cattle ranch and how you have been running it for years without issues.
I therefore presume that you have accumulated expertise in the industry. I also believe the ranch is not holding less than1000 heads of cattle. I therefore want to offer you the following advise which will set a precedent in the industry in Nigeria.

1. Go and set up a hay production center on farmland located in a different state to demonstrate that hay making is a separate business on its own. It need not be on more than ten hectares and the workers or worker can work part time and if it produces only 50 tons of hay per annum, it would have become a successful venture which will be profitable. Buy hay from the new company for your ranch but let it operate independently. It will need where to store the hay and that will be the main investment.

2. If your ranch has been operating for so long without hitches and without owing workers salaries then it can easily be valued at a minimum of 5 billion naira in the NGX if it is up to one thousand heads and is making up to 200 million naira per annum after expenses. List the company on the NGX by selling forty percent of it which will be worth 2 billion naira. You retain sixty percent ownership.

3. The 2 billion naira raised in the suggested Initial Public Offering will set up two new ranches of the same size easily and you retain your sixty percent controlling shares in the company apart from equity you may need to give to land owners which should not exceed 200 million naira in the company. The challenge left will be how to feed the cattle in the ranch and that is the problem number one was planned to solve and it will be solved by onlookers that copied the first step. Your company will buy hay from hay makers. It is not more difficult than a palm kernel oil refinery buying palm kernel or a brewery buying brewery feed.

4. There is no reason why the new company should not be sharing around 500 million naira minimum in dividends every year.

I wish you all the best sir.