Every time I go on social media these days, I see people planting yams and other crops in bags around their houses. I mean, why won't you? The price of food items at the moment is not smiling at anybody. But how sustainable is this practice? Can each family grow what they consume? If you said no, you are probably right, and if you said yes, well, you are also probably right. I am sure you have a good explanation for that choice; I am just not sure how you can explain that.
Let us look at this from a business perspective. If each family were to grow some yams, tomatoes, and other vegetables that are highly consumed by a good portion of our community daily, considering the length of time it takes these crops to grow, how long do you think each family would have to wait before they harvest these crops? How long do you think it will take to consume what has been produced, and how long do you think it will take to grow another batch? I am hoping you didn't say yes to the first question, because now you are probably saying, "Oh, I see, that's not sustainable.".
In recent years, the agricultural sector in Nigeria has emerged as a beacon of opportunity for savvy investors seeking sustainable returns and long-term growth, even more so in 2024. With the rise in forex and the reaffirmation of the truth that we need to produce what we consume, agriculture won't be a bad place to put an investment.
Why will you most likely make good money from this sector? Well, according to the World Population Review, Nigeria currently has a population of 227 million, and it is projected to exceed 400 million by 2050; that's a lot of mouths to feed If you ask me, and as my friend will say, "Las Las, everybody go chop". The good thing is we have fertile soil, diverse climatic conditions, and ample water supply to support this growing population if we channel our energy to the right business venture. How does the saying go again? Business ideas are developed to solve problems; money is just an added incentive to solve the right problems. Urbanization further amplifies the reason why you should go into this sector, as the demand for food will continue to rise in comparison to the supply.
Recently, I saw a video of the Governor of Niger State addressing a group of farmers and reemphasizing his support for the need to grow that sector of the economy. We will look into the government's interests, benefits, and funding opportunities in other posts, so for now, let's leave it to the government's awareness of the importance of this sector. Another major area that should pique your interest is the export potential within this sector. Who doesn't want to earn in dollars, pounds, or other foreign currencies? There's also technology and innovation revolutionising this sector; yes, tech is not just TikTok and Instagram; it is also doing amazing things in agriculture. From precision farming and agrotech solutions to value-added processing and market linkages, advancements in technology are increasing efficiency, productivity, and profitability across the agricultural value chain.
Investing in agriculture also provides diversification benefits in terms of spreading the risk across different asset classes. Unlike volatile financial markets, agricultural investments are less susceptible to economic downturns and geopolitical uncertainties, and this offers stability and resilience to your portfolios. Beyond financial returns, investing in agriculture in Nigeria has the potential to generate positive social and environmental impacts. By supporting smallholder farmers, promoting sustainable practices, and enhancing food security, you can contribute to inclusive growth and development while safeguarding natural resources for future generations.
In future posts, I will be looking at different areas of agriculture, new trends, youths in agriculture, and sustainable farm practices, and hopefully, you will learn one or two things to help you on your investment or farming journey. Till then, enjoy the rest of your week.
