Agriculture Investment In Nigeria
Agriculture Investment In Nigeria, Often, the word investment to Nigerians means mutual funds, stock, or even real estate. However, they are good investment ideas. However, Agricultural investment is currently one of the chart-topping investment opportunities in Nigeria. This is a goldmine opportunity for investors from all wakes of the Nation. Therefore, it is only right to write about the many opportunities linked with Agriculture Investment in Nigeria.
The strange thing about this sector is that everyone has an idea about its sustainability, but many ignore it. This is because of the farming stress and the lack of adequate knowledge about agriculture.
Previously, it was thought to people that agriculture is mainly for farmers. However, recent development has shown various types of ways to invest in agriculture. The rate at which the Nigerian economy is beginning to rely on funds from agriculture is increasing. In 2020 alone, the agriculture sector contributed about $120 billion to the country’s GDP.
The great news about investing in agriculture in Nigeria is that it has great growth potential. Additionally, it has still not been fully tapped into.
Reasons You Should opt for Agriculture Investment in Nigeria
Various reasons will propel you to invest in the Nigerian agricultural sector. The sector promises low-risk investment. It is sustainable; there is high demand for Agricultural produce, it is a diverse sector, brings frequent returns, and is great for humanity.
The agricultural sector, as previously mentioned, is highly sustainable compared to the varieties of investment opportunities in the country. This is because there is a promise of minimized risks compared to other forms of investment. However, it does come with its risks, but no challenge can prevent Nigerian citizens from feeding. The over 200 million inhabitants of the country need to feed, and there is a growing rise in the demand for food. The country is currently producing below the percentage of food needed for survival. The implication is that there is a need for more farmers to enter into the sector. The more farmers are in the country, the more room for investment in agriculture.
Additionally, agriculture investment is rarely disturbed by any form of economic instability. Also, there is the opportunity of land value in the industry, and land value continues to rise in Nigeria. Hence, there is little margin for failure in agriculture investment in Nigeria.
High Demand for Agricultural Produce
There are a lot of agricultural products, which puts your investment in a good place to start with. You might want to ask some basic questions like, will I ever stop needing to clothe myself or feed? The answer to this question is NO. Additionally, agricultural products are needed in every area of life. It is needed for medical purposes, transportation, and many manufacturing companies. Although food is essential, every other need for farm products is equally needed. Hence, there is always a high need for agricultural products. The good news is that everything that comes out of a farm is largely marketable. This goes from fertilizers to food products to animal waste and many more. There is only a little margin for loss in agricultural investment. Therefore, if you choose to put your money in this sector, you are relatively safe.
All forms of investment in the world come with their risks. This is to prepare your mind that nothing you venture into has zero risk. Therefore, agricultural investment also comes with its risks. This is because various circumstances could arise that will eat into your investment. Natural disasters can play an important role in agricultural risk. There is also what is known as the invasion of pests, among many others. Before you feel downcast or lose your motivation to invest, you need to put that no investment without its own risk at the back of your mind. The only reason you would have zero risk is if you do not invest in the first place. Even with that, you risk losing the value of your money over time.
However, the best thing to know is that agricultural investment comes with minimal risk and is easy to bounce back. Also, you must measure your tolerance level for risk before going into any investment. Doing this will help your decision-making, and you will be making that decision based on your improved knowledge. Furthermore, some agricultural products come with insurance cover. You should also know that location-based diversification limits the risk on your investment. Overall, understand what you are going into before investing your money.
Diversification in Agriculture
Looking for more informed reasons to enter into Agriculture investment in Nigeria? Think about diversification. Many experts in the field of investments are always advising to have varieties of an investment portfolio. This means that you should target various opportunities that exist in agriculture. The advantage that this idea provides you with is leverage and sustainability. This means that you can always move to the next investment when one collapses. It helps you save money and helps you remain in the game for so long. You can invest in various agriculture parts like fish farming, livestock, poultry, animal food, cassava, plantain, and many more. This diverse farming comes with its pain and gain, but the gain is way more than the pain. Therefore, a large investment portfolio like this will help you stay in the loop of things, and one can help keep the other afloat.
Agricultural investment brings frequent return on investment
The main reason you are investing is to make money. When you invest, you expect returns after each sale. Therefore, it is known that investing in agriculture helps you make more and more money.
However, these returns largely depend on various factors you should not overlook. There are factors like commodity type and farm location, among others. The great thing is that you are likely to make more returns from farming. The annual harvesting of some crops and the fact that you can harvest other crops multiple times a year helps bring frequent returns.
Hence, depending on how your investment is set, you can always make money from short and long-term investments. For example, fish farming and poultry farming can earn you multiple returns in the cause of a year. All you need to do is to make an informed decision before investing.
Greater Good of Mankind
There are several great individuals and philanthropists globally, especially in Nigeria. Some of these people want to see people living fine and help the human race fight hunger. If you are one of these individuals and have a lot of money, investing in agriculture goes a long way. You can do this by financing passionate farmers who do not have enough money to enhance their farms or push their products to the market. By doing this, you are not only helping the farmer, but you are also helping humanity. Being in the comfort of your home and having the fulfillment that someone somewhere can feed can stand as a motivation for you.
The good news is you also stand to get returns on your investment. The farmers you are helping, or financing also will find different ways to pay you in return. Hence, this becomes a win-win situation for everyone involved.
How to Invest in Agriculture in Nigeria
There are various ways to go about investing in agriculture in Nigeria, and we will be giving hints that will help you below;
The idea of investing should not just focus on the returns. It is only appropriate that you understand what you are investing in. Doing this will help you minimize the risks and challenges of every investment.
Choose Your Investment Focus
Agriculture in Nigeria is a very wide pool to plunge into without choosing where you want to harness. It becomes easier to sink in the pool when there is no possible direction. Therefore, decide on the subsectors of agriculture you intend to put your money in. as mentioned above, you can choose diversities of subsectors. The list goes from animal farming to poultry to crop farming and many more. Each one serves different purposes and comes with various risks. However, studying each sector well will put you in the light.
Be careful not to over-invest
Sometimes investors get so happy with the number of positives attached to their potential investment and get carried away. Doing this can cause many challenges when returns are not meeting the expected need due to one factor or the other. The best thing is to invest as much as you are willing to lose without getting hurt.
Choose your agriculture Investment In Nigeria platform wisely
There are various investment platforms for agriculture in Nigeria, and they all have different value propositions. Study each of these platforms properly to grasp how your money will be utilized. Start with Farmpark today
Conclusion on Agriculture Investment In Nigeria
Agriculture investment in Nigeria is an absolute money maker, and you can always bank on the low-risk entry. You have various reasons to invest and make a lot of money, but you must stick to the advice from experts in the field. We wish you are a great and happy investment.