Over the last decade, agriculture has been promoted as the “next oil” in Nigeria and across Africa. It is true that the sector holds enormous potential to create wealth, jobs, and promote food security. But while many people are excited to invest in farming, processing, or agro-export, the reality is that agriculture is not a get-rich-quick scheme.
In fact, many first-time investors lose money not because the opportunity wasn’t real, but because they lacked the discipline, patience, and understanding needed to see it through.
If you’re considering putting money into agriculture, here are some hard truths and practical advice to help you avoid becoming another cautionary tale.
1. Agriculture is a business, not a hobby
Many people enter agriculture emotionally: “I love nature.” “I want to feed the nation.” While noble, these reasons are not enough. Agriculture requires a business mindset.
A banker in Lagos recently invested over ₦80 million in a poultry farm in Ogun State. But he rarely visited the site, he relied on untrained staff, and he did not understand feed management or disease prevention. Within 24 months, so many things went wrong and the business folded up Passion was not the issue — poor structure and oversight were.
2. Learn before you earn
Would you invest in stocks without knowing how the market works? Why then do you invest in agriculture without understanding the basics.
You must:
- Learn about the crop or livestock management
- Understand the associated risks and marketing structure
- Master your costs and margins
A young lady in Abuja attended a 3-month training on greenhouse vegetable farming before starting her tomato greenhouse. She understood her numbers, developed a market for premium tomatoes, and scaled to 4 greenhouses. She invested in knowledge first.
3. Patience and monitoring are not optional
Many investors treat agriculture like real estate — “Just put money and wait for profit.” That is a big mistake. You must:
- Be involved, especially in the early stages
- Use available technology like CCTV, or farm apps to stay informed
- Ask for weekly updates — and verify them
I know a group of friends who funded a fish farm and never visited for six months. When they did, they found poorly motivated staff and empty fish ponds. They lost over ₦50 million of their investment. Their biggest mistake? Trusting without verifying.
4. Start small, grow smart
Do not put your life savings into your first farming venture. Start lean. Test the model. Grow with experience. Start with:
- Pilot projects (e.g., 500 broilers or 1 greenhouse)
- Learning cycles (fail small, correct fast)
- Solid recordkeeping
An IT professional in Ibadan began with 200 broilers in her backyard. After 5 successful cycles, she has now scaled up to 2,500 birds per cycle and has opened a mini-processing unit. She scaled sustainably — not emotionally.
5. Partner with experts and build a network
You don’t need to know everything — but you must know the right people.
Key actions:
- Hire trusted farm consultants
- Partner with reliable farmer groups or cooperatives
- Attend agribusiness expos, trainings, and educational programs
When a Lagos based entrepreneur wanted to export ginger. He partnered with a farmers’ cooperative, in Kaduna and worked with a post-harvest consultant. He also registered with Nigeria Export Promotion Council. Today, he exports over 40 tons monthly. His key to success? Smart partnerships.
Conclusion: invest in knowledge before you invest your money
Agriculture can be a goldmine — but it takes grit, structure, patience, and a business approach. If you are thinking of investing:
- Learn first
- Start small
- Be involved
- Work with experts
- Build trust — but always verify
Remember: “The land does not reward intentions. It rewards effort and consistency.”
Do you have any question about agribusiness investment or need help structuring your own agribusiness venture? Let’s connect in the comments or reach out via WhatsApp on +2349165743096.