6 Ways to Start an Agribusiness with Little Capital in Nigeria

The desire to become an agribusiness owner or a farmer is a noble one, especially in this age and time when many people shy away from it. However, the dilemma occurs when the passion exists, but the resources to pursue said passion are inadequate. Starting an agribusiness with little to no capital can be quite tricky if you don’t know where to start and how to go about it. In this article, we will be breaking down 6 ways to start an Agribusiness with little capital in Nigeria.

 

We will be looking at:

• How to start an agribusiness with little to no capital, especially as a beginner in Nigeria
• What to avoid when starting your agribusiness
• Types of agribusiness you can start with little capital
• How to start farming with no experience
• Where and how to get money to start your farming business

How to start an agribusiness as a beginner in Nigeria with little money 

 

In today’s world, especially on this side of the globe, challenges like food insecurity are making it more paramount for everyone to explore farming and agribusiness as an occupation. Our population is multiplying at a geometric rate, making it much more imperative for us to produce food. Now, it may sound almost impossible to start farming without the necessary resources since farming is known to be an expensive venture. However, it is not. You don’t need to break the bank or enter into debt to begin. All you need is the right information, proper planning and commitment.

So, what are the steps to take when starting farming with a limited bank account?

• Pick the right agribusiness: This is one of the most important steps you will need to take because it determines the success of your agribusiness journey. Since you’re starting with little money, you should focus your energy on ventures that require very little capital but yield great returns. These are the types of agribusiness you can start with little to no money.
  • Short production crops: vegetables like ugu and amaranthus, cereals like maize and groundnut, cultivated in your backyard on a small plot and tomatoes cultivated in sacks.
  • Livestock farming: This includes poultry farming, which you can begin by raising 50 chicks in a simple pen made with nets. Or rabbit farming, which you only need to begin with a few rabbits in a cage. This makes it possible to start snail, chicken or rabbit farm with little capital.
  • Fish farming: This is a very low-cost business because there are many options you could explore. A movable plastic tank, tarpaulin tank or a concrete-walled pond are all very affordable options.
• Start small, expand later: Don’t be in a rush to rent hectares of land or expensive and sophisticated machinery. Your focus should first of all be on gaining mastery and generating consistent revenue. You can begin in your backyard with easily modifiable options like crates, tarpaulins and sacks mentioned earlier.
• Look out for free resources and knowledge: When you only have a little money to start your agribusiness farming, you should look out for free resources like a friend’s land, or using manure instead of fertilizers and taking free courses and tutorials on platforms like YouTube. These platforms provide answers to questions like: “I want to be a farmer, where do I start?” “How to start farming for beginners, etc This is how you can start your agribusiness with little to no experience
• Apply for government and organisations’ grants: Many grants help you start an agribusiness with no money. The government and many private and non-profit organizations have provided many avenues to support small-scale farmers with funds, training, etc.

Agribusiness Funding Opportunities in Nigeria for Small & Medium Farmers

• NIRSAL Microfinance Bank Loans
• CBN Agric Loan Scheme (Anchor Borrowers Programme)
• Youths in Agribusiness Program (by IITA)
• Tony Elumelu Foundation (TEF) Entrepreneurship Grant
• BOA (Bank of Agriculture) Loans

• Invest your earnings back into your business: Your business is at a delicate stage where it needs all the resources for expansion and survival. So, your profits should go back into your business.
• Leverage social media for marketing: In this digital age, marketing has become much easier, so the way forward for a small-scale farmer is to market before harvesting, so that there are ready customers and he doesn’t experience post-harvest losses.

Now that we’ve looked at the 6 steps to take to start farming with little money, let’s explore what to avoid when starting an agribusiness with little money.

What to avoid when starting your agribusiness with little money and experience

• Don’t pick a capital-intensive agribusiness, like cattle farming. Do your research before choosing a business.
• Don’t start large by taking loans to rent land and hire labourers or equipment: This will automatically put pressure on you and won’t give you room to expand steadily. We’ve explored some grants available to start your agribusiness. That is a good place to start.
• Don’t try to do it alone: When it comes to starting an agribusiness, knowledge is key. Hence, you must pursue knowledge, join forums and discussion groups, use youtube and take free online courses. Knowledge will help you avoid certain costly mistakes.

Let’s expound more on how to start farming with no experience.

How to start farming with no experience 

The easiest and fastest way to start farming with no experience is to learn by observation and doing. What this means is that you attach yourself to a farm or farmer who is doing what you would love to do so that you can learn and apply it in your own agribusiness.

In conclusion, starting your own agribusiness with little to no money and experience in Nigeria is very possible and attainable. All you need to do is remain committed to building wealth as an agribusiness owner while applying everything we’ve discussed above.