How to Start Agriculture Business in Nigeria: 7 Tips

How to start an agriculture business in Nigeria – Agriculture is a vital sector of the Nigerian economy, accounting for over 20% of the nation’s GDP and employing about 70% of the population. Agriculture is the production of crops, livestock, and other commodities for human use and consumption. 

The sector plays a critical role in providing food security, reducing poverty, creating employment opportunities, and generating foreign exchange earnings for the country. In this article, we will discuss 7 tips on how to start an agriculture business in Nigeria.

What is Agricultural Production?

Agricultural production is the process of growing crops, raising livestock, and producing other agricultural products for human use and consumption. Agricultural production involves several stages, including land preparation, planting, nurturing, harvesting, processing, and distribution. The production process requires the use of various resources, including land, labor, capital, and technology.

Agricultural production is essential for food security, economic development, and poverty reduction in Nigeria. The sector provides a source of income for millions of small-scale farmers, processors, and traders, who contribute to the growth and development of the rural economy.

Types of Agriculture Business in Nigeria

There are several types of agriculture businesses in Nigeria, and each type requires specific skills, knowledge, and resources. The main types of agriculture businesses include:

Crop Farming

Crop farming involves the cultivation of crops such as maize, rice, yam, cassava, beans, and other vegetables. Crop farming is the most common type of agriculture business in Nigeria and is suitable for small-scale farmers and large-scale commercial farmers.

Animal Husbandry

Animal husbandry involves the breeding, raising, and management of livestock such as cattle, poultry, sheep, goats, and pigs. Animal husbandry is suitable for farmers with the necessary resources and expertise to manage the animals and their products.

Fisheries and Aquaculture

Fisheries and aquaculture involve the cultivation, management, and harvesting of fish and other aquatic animals. Fisheries and aquaculture are suitable for farmers with access to water bodies or who can construct fish ponds.


Agro-processing involves the conversion of agricultural products into value-added products such as flour, oil, and canned foods. Agro-processing is suitable for farmers with the necessary resources and skills to process their products or collaborate with processing companies.


Agro-forestry involves the cultivation of trees and crops on the same piece of land. Agro-forestry is suitable for farmers with access to land and who want to diversify their income streams.

Is Agricultural Business Profitable?

Agricultural business can be profitable in Nigeria, but it depends on several factors such as the type of business, the size of the operation, the level of competition, and the market demand. Crop farming, animal husbandry, and agro-processing are the most profitable types of agriculture businesses in Nigeria. However, there are several challenges that farmers face, including inadequate infrastructure, low access to finance, poor market linkages, and insecurity in some parts of the country.

Despite the challenges, the agriculture sector has enormous potential to contribute to economic growth and development in Nigeria. The sector can create employment opportunities, increase food security, and generate foreign exchange earnings for the country.

7 Tips on How to Start Agriculture Business in Nigeria

If you want to start an agriculture business in Nigeria, here are 7 tips to help you get started:

1. Conduct Market Research

Before starting an agriculture business, you need to conduct market research to identify the demand for your products, the competition, and the market trends. Market research will help you make informed decisions about what crops or livestock to produce, where to sell your products, and how to price your products.

2. Develop a Business Plan

A business plan is essential for any agriculture business. It outlines the objectives, strategies, and action plans for your business. A business plan will help you identify the resources required, the potential risks and challenges, and the financial projections for your business. It will also help you secure funding from investors or financial institutions.

3. Acquire Land and Farm Equipment

Land is a critical resource for agriculture businesses. You need to identify suitable land for your farming activities, either through lease or purchase. You also need to acquire the necessary farming equipment and machinery, such as tractors, irrigation systems, and storage facilities, to carry out your operations efficiently.

4. Choose the Right Crops or Livestock

Choosing the right crops or livestock to produce is essential for the success of your agriculture business. You need to consider factors such as the soil type, climate, market demand, and profitability when selecting your crops or livestock. You should also consider the availability of inputs such as seeds, fertilizers, and vaccines.

5. Hire and Train Employees

Human resources are essential for any business, and agriculture businesses are no exception. You need to hire and train employees with the necessary skills and knowledge to carry out your operations. You should also provide them with adequate remuneration, incentives, and safety measures to ensure their motivation and productivity.

6. Secure Funding

Starting an agriculture business requires a significant amount of capital. You need to identify potential sources of funding, such as grants, loans, or equity investments, to finance your operations. You should prepare a detailed business plan and financial projections to convince potential investors or lenders to fund your business.

7. Network and Collaborate with other Farmers

Networking and collaboration are essential for the success of any agriculture business. You should join farmer associations, cooperatives, or other relevant organizations to access market information, technical assistance, and collective bargaining power. You can also collaborate with other farmers or agribusinesses to share resources, knowledge, and markets.

Facts and Benefits of Agriculture

Agriculture is an essential sector of the Nigerian economy, with several facts and benefits. Here are some of the key facts and benefits of agriculture in Nigeria:

Facts about Agriculture in Nigeria

  • Nigeria is the largest producer of cassava and yam in the world.
  • Nigeria is the second-largest producer of tomatoes in Africa.
  • Nigeria is the largest producer of cowpea in the world.
  • Agriculture accounts for over 70% of employment in rural areas.

Benefits of Agriculture to the Economy, Environment, and Society

  • Agriculture contributes over 20% to Nigeria’s GDP.
  • Agriculture provides food security for the population.
  • Agriculture generates foreign exchange earnings through exports.
  • Agriculture reduces rural poverty by creating employment opportunities.
  • Agriculture promotes environmental sustainability by conserving natural resources.


Starting an agriculture business in Nigeria requires careful planning, adequate resources, and market knowledge. By following the 7 tips discussed in this article, you can increase your chances of success and contribute to the growth and development of the Nigerian agriculture sector. Agriculture is a profitable and rewarding business that can provide food security, employment, and economic growth for the country.

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