Agriculture is the backbone of the Nigerian economy, accounting for over 20% of the country’s GDP and employing about 35% of the labor force. The agricultural sector is also a major source of foreign exchange earnings for Nigeria, with exports of agricultural products totaling over $20 billion in 2022. As a country with a high rate of unemployment, agriculture seems to be one of the industries that can help to reduce this rate with different opportunities lying around it. Unlike the popular opinion that only those with a farm can participate in agricultural business or be a part of the industry.
There are many opportunities for entrepreneurs to start an agricultural business in Nigeria, even if they do not own a farm. In this article, we will discuss some of the ways that you can start an agricultural business without owning a farm.
Agricultural Businesses You Can Start Without Owning a Farm
There are many ways to start an agricultural business without owning a farm. Here are a few ideas:
Invest in farmland: If you do not have the time or resources to manage a farm yourself, you can invest in farmland and lease it to farmers. This can be a profitable investment, as the value of farmland in Nigeria has been steadily increasing in recent years.
Sell farm equipment: There is a growing demand for farm equipment in Nigeria, as more and more farmers are mechanizing their operations. If you have experience with farm equipment, you can start a business selling. You can also decide to rent it out to farmers who cannot afford to buy it, especially those equipment that are expensive.
Build a storage facility: There is a need for storage facilities for agricultural products in Nigeria. If you have land and the capital to invest, you can build a storage facility and rent it out to farmers or traders. This will reduce the wastage of farm produces.
Fertilizer Supplier: Fertilizers are important to farming because they provide plants with the nutrients they need to grow and produce a healthy crop. Fertilizers are important for farmers to grow plants the way they want them to. You can decide to be a supplier of these fertilizers and other important farm inputs that helps farmers be more productive and aid farming.
Start a processing facility: There is a growing demand for processed agricultural products in Nigeria. This is because when more farm products are processed in the country, we can get the best by-products. Which will in turn encourage manufacturing in the country. If you have the skills and knowledge to process agricultural products, you can start a processing facility. And sell your products to retailers, wholesalers, or manufacturers.
Transport farm produce: There is a need for transportation services for agricultural products in Nigeria. If you have trucks or other vehicles, you can start a transportation business and transport farm produce to markets or processing facilities.
Packaging farm products: Packaging food products in an appealing manner can be a lucrative opportunity for generating income without the need to own a farm. When food is well-packaged, it becomes visually appealing and holds greater allure for consumers.
Provide agronomy consulting services: Agronomists are experts in crop production. If you have a degree in agronomy or a related field, you can start a business providing agronomy consulting services to farmers who have little or no knowledge about farming.
Export farm products: There is a growing demand for Nigerian agricultural products in the international market. You can decide to export the original farm produce or the by-products which will be used for manufacturing other products in another country. If you have the resources to export agricultural products, you can start an export business.
Market farm produce: There are a lot of farmers who record losses due to the fact that they couldn’t get customers to purchase their harvested crops. Instances such as this highlight the need for marketing services for agricultural products in Nigeria. You don’t even need to study marketing or agriculture to do this. If you can find buyers for farm products and position yourself as a middleman between farmers and buyers, then you have a business to run.
Offer Credit to Farmers: Another way of getting involved in the agricultural business without owning a farm is offering credit to farmers who need to purchase seedlings, fertilizers, or tools for their farms. One of the major problems farmers face is access to finance to help them prepare for the farming season. Fixing this problem will not just make you a part of the industry but also an important one at that.
These are just a few of the many ways that you can start an agricultural business without owning a farm in Nigeria. With a little research and effort, you can find a business that is a good fit for your skills and interests.
Conclusion
Starting an agricultural business can be a great way to make a profit and contribute to the development of the Nigerian economy. Even if you do not own a farm, there are many ways to get involved in the agricultural sector. By choosing the right business and doing your research, you can increase your chances of success.
If you are interested in starting an agricultural business, there are a few resources that you can use to get started. The Nigerian Ministry of Agriculture has a website with information on agricultural policies and programs. There are also a number of private sector organizations that provide training and support for agricultural entrepreneurs.
