No doubt that agriculture is now a really profitable investment option in Nigeria.
Over the past few years, we've seen many agribusinesses spring up, offering investment solutions in agriculture. And with many of them, this happens at scale.
Not only that, there are also many other individuals and companies, who farm at the enterprise level, and make their money without any stress.
Just earlier in 2020, BusinessDay reported that investment in Nigeria's agriculture space is racing for $500m. That lent some more credence to the lucrativeness of this.
Actually, going by the figures, agriculture is one of the most lucrative Investment options you can explore in Nigeria at the moment.
Is Agriculture Really that Lucrative?
An average agribusiness will offer about 40% ROI on investments. Of course, you shouldn't expect that they make 50% ROI, only to keep the 10% left after paying you. So, they apparently make way more than that.
And to add to that, agricultural products are part of our everyday lives, in more ways than you can imagine.
You'll be surprised to know how many of the things you use actually came from crops, even outside of food. So, if that's how much we depend on agriculture, it's sure to be a money mint.
But while that is the case, it's tricky to pump money into any crop, and expect high yields. The truth is, some of them have more economic value than the other.
So, if you're looking to invest in agriculture, we've highlighted some of the high-yield crops you can focus on.
Here's where you can expect your Return on Investment (ROI), to really be as high as you can imagine.
Maize can be processed into a variety of food and industrial products, including starch, sweeteners, oil, beverages, glue, industrial alcohol, and fuel ethanol.
This gives it an economic edge, and a huge demand, which automatically translates to more gains for farmers (and investors alike)
Also known as Melon, egusi also has a lucrative edge in the league of crops. Hardly is there any place where egusi is not eaten.
But aside from that, you may not also know that the oil extracted from melon oil is used in the manufacturing of margarine, shortening and cooking oil.
Not only that, the residual cake is a useful source of protein for livestock feed. Apparently, you've got some money coming your way.
This may not sound so familiar, but that doesn't affect its demand. Paddy rice is also called unmilled or broken rice.
Unlike normal rice, this is grown in a flooded farm, and has a market of its own.
In industries, paddy rice is used in brewing, distilling, and in the manufacture of starch and rice flour. The back, also known as hulls are used for fuel, packing material, industrial grinding, fertilizer manufacture, and in the manufacture of industrial chemicals.
In any case of agriculture Investment, you'll be looking at 30%+ in ROI, despite how unusual some of the crop sounds.
Interestingly, if you're ready to jump on the winning wide of agriculture investment, Farm4Me is your go-to place to get started.
Check out our investment options here, and choose your preferred crop. And if you've got any questions, you can reach us here.