In a world where the Coronavirus pandemic has caused uncertainties in capital markets, agritech startups may have become safer options for investors. Today, there are various agritech startups that have made farming more profitable, by eliminating risk exposure and delivering ROI to investors who do not have to buy land, place workers on salaries, or even burn cash on pest control and management.
These agritech startups have reinvented the way farm business is operated, hence, making more Nigerians – most especially blue-collar workers –to weigh their investment options and consider becoming digital farmers.
The following are five selected agritech startups that offer high yield investment opportunities through internet/mobile app-farming.
This agrictech startup was founded by Niyi Oguntade. It is an initiative of Timesellers Limited. Groupfarma focuses on tubers, small ruminate, vegetables, poultry, and rice farms. The investment options offered by Groupfarma have various returns on investment, falling between 20% and 28%, with farming cycles from 6 months and above.
The capital required for investment is at least N50,000 per unit and the farm is covered by Leadway Assurance. Groupfarma has farms located in Ogun, Oyo, and Kaduna states. The company partners with the Nigerian Agricultural Insurance Corporation.
The firm is co-founded by Bill Kenneths and Akpa Chike. Farmsponsor leverages on technology to bridge the gap between interested investors and the farmers. It mainly focusses on poultry farming and offers investors assurance of 15% on 12-week cycles.
The start-up opens its farm to investors who are willing to invest from N100,000 to as much as N1 million. The investment firm also offers investors the opportunity to save their cash with vestwallet for upcoming cycles. Farmsponsor is also insured by Leadway Assurance and the Nigerian Agricultural Insurance Corporation.
Felix Imafidon is the founder of the marketplace, Requid, which won the maiden edition of the Nigerian Stock Exchange X-Kathon competition. The agric investment platform operates with a twist, as it offers investors the option of liquidating (selling) at any time if an investor cannot wait till the end of their cycles. Note that the cycles are usually between 3 to 12 months.
The company also has the lowest capital investment among the selected agric-tech startups. Interested investors can invest as low as N5000 in investment opportunities aggregated by Requid, which include rice, goat, pig, cowper, cashew nuts, fish, yam, and poultry farms. Surprisingly, Requid offers as high as 60% cumulative return on investments annually.
4. Thrive Agric
The agritech startup was co-founded by Ayodeji Arikawe and Uka Eje in 2016. Thrive Agric has farms in Oyo and Kano. Investors are allowed to invest from as low as N10,000 to as much as N85,000, depending on the investor’s preferred crop. Returns on investment fall between 12% and 20%, depending on the level of investment.
Thrive Agric manages both poultry and rice farms, which are insured by Leadway Assurance.
This list will not be complete without mentioning this agritech startup. Farmcrowdy is a household name in the agric investment space. It was co-founded by Onyeka Akumah, Akindele Phillips, Tope Omotolani, Christopher Abiodun, and Ifeanyi Anazodo four years ago to empower farmers and help investors earn profits without having to lift a shovel.
Farmcrowdy offers a variety of investment options to investors, ranging from maize farms to rice, potatoes, fish, cassava, poultry, cattle, and more farms, most of which are located in Kaduna, Oyo, Ogun, Niger State, and Lagos states. These farms are insured by Leadway Assurance.
Capital for investment falls between N20,000 and N60,000 per unit, with ROI ranging from 7% to as high as 44% depending on the investor’s farm choice. Farmcrowdy’s farm cycle runs between 3 and 24 months.
Why you should invest in agric
Nigeria is gradually moving closer towards experiencing an agrictech boom, as food security within the country is still low. The population explosion has further increased the value of agric businesses.
With a population of over 190 million, Nigerian farmers are in need of more investments to meet the local demand for agricultural production as well as exportation needs. Not only is there a demand, the land is readily available, considering that out of 82 million hectares of Nigeria’s arable land only about 32 to 34 million hectares are cultivated.
(READ MORE: Covid-19 Update in Nigeria)
Following the border closure by President Muhammadu Buhari to support domestic farming, these hectares are expected to drastically decline in number in the long run. Ongoing efforts by the government to diversify the economy from oil dependence will also help in this regard. This is already paying off, considering that agriculture was one of the key drivers of the non-oil sector’s contribution to Nigeria’s GDP, growing by 2.28% in Q3 2019.
However, there is a warning sign
Note that the agritech investment market is still very much under-regulated, even as the Securities and Exchange Commission (SEC) has warned interested investors must carry out due diligence before patronising any agritech platform. Part of this due diligence is to contact SEC after discussion with the investment platforms.
COVID-19 Update in Nigeria
On the 7th of March 2021, 269 new confirmed cases and 5 deaths were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 158,506 confirmed cases.
On the 7th of March 2021, 269 new confirmed cases and 5 deaths were recorded in Nigeria.
To date, 158,506 cases have been confirmed, 137,875 cases have been discharged and 1,969 deaths have been recorded in 36 states and the Federal Capital Territory.
A total of 1.54 million tests have been carried out as of March 7th, 2021 compared to 1.49 million tests a day earlier.
COVID-19 Case Updates- 7th March 2021,
- Total Number of Cases – 158,506
- Total Number Discharged – 137,890
- Total Deaths – 1,969
- Total Tests Carried out – 1,544,008
According to the NCDC, the 269 new cases are reported from 19 states- Enugu (78), Bauchi (37), Rivers (22), Imo (18), Ogun (16), FCT (15), Akwa Ibom (13), Kaduna (13), Kebbi (11), Kwara (9), Edo(7), Ekiti (6), Borno (5), Yobe(5), Kano (4) Nasarawa (3), Osun (3), Anambra (2) and Plateau (2).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 56,444, followed by Abuja (19,350), Plateau (8,944), Kaduna (8,658), Oyo (6,766), Rivers (6,680), Edo (4,670), Ogun (4,437), Kano (3,844), Ondo (3,066), Kwara (2,962), Delta (2,582), Osun (2,457), Nasarawa (2,251), Enugu (2,156), Katsina (2,060), Gombe (2,010), Ebonyi (1,951), Anambra (1,813), Akwa Ibom (1,610), and Abia (1,588).
Imo State has recorded 1,569 cases, Borno (1,308), Bauchi (1,274), Benue (1,188), Adamawa (942), Niger (919), Taraba (863), Ekiti (834), Bayelsa (779), Sokoto (769), Jigawa (496), Kebbi (412), Cross River (334), Yobe (293), Zamfara (222), while Kogi state has recorded 5 cases only.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.
Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.
On 26th January 2021, the Federal Government announced the extension of the guidelines of phase 3 of the eased lockdown by one month following the rising cases of the coronavirus disease in the country and the expiration of phase 3 of the eased lockdown.
On 28th February 2021, the federal government confirmed that the first tranche of Covid-19 vaccines will arrive in Nigeria on Tuesday, March 2nd, 2021.
On Tuesday, 2nd March 2021, the National Primary health Care Development Agency announced the arrival of the expected COVX Astrazeneca/Oxford covid-19 vaccines.
On Saturday, 6th March 2021, President Muhammadu Buhari and his vice, Yemi Osinbajo received vaccination against the covid-19 as the State House in Abuja.
Update: Health Minister states side effects of COVID-19 vaccines
Dr. Osagie Ehanire has disclosed the side effect of the COVID-19 vaccines.
Minister of Health, Dr. Osagie Ehanire has stated the side effects of the COVID-19 vaccines, which he said is mild.
The minister disclosed this during the live broadcast when President Muhammadu Buhari took his vaccine shot on Saturday.
According to the Minister, the reactions are usually mild and only few people had complained of mild pain in the part of the body they got the shot.
He said, “It is not everybody that complained of reactions/side effects but few had complained of mild pain at the part of the body they got the shot.
”Usually manufacturing vaccines take not less than 4 years but this only took about 1 year, which is the reason some people are apprehensive about the vaccines. This was manufactured in the United Kingdom and has been certified.”
Ehanire, explained that the jab is painless as a narrow gauge syringe was used with a small quantity injected in the upper arm.
He added that the after-effects are mild but accompanied by little discomfort in the area that was injected.
Present at the brief ceremony were the Secretary to the Government of the Federation (SGF) Mr Boss Mustapha; Minister of Information and Culture, Alhaji Lai Mohammed; the Chief of Staff to the President, Professor Ibrahim Gambari and other members of the Presidential Task Force (PTF) on COVID-19, senior government officials and journalists.
Nairametrics | Company Earnings
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- Seplat falls into a loss in FY 2020
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.