Jan Hepburn

Jan Hepburn is one of Nigeria's agriculture success stories. He has operated in the country for the past nine years and has received 'chief' status in a number of states because of his contribution to the welfare of the people. Jaco Maritz spoke to him about his business and the opportunities available to other investors.

"I am convinced that Nigeria is going to become the food basket of Africa and world."

Jan Hepburn has the energy of a kid as I meet him and his wife at a Cape Town restaurant to discuss his agriculture business in Nigeria. Originally a South African and having been involved with farming projects all over Africa, he has been based in Nigeria for the past decade.

His company, Sheppard Agriculture Nigeria develops and manages farms and other agriculture projects on behalf of private parties and state governments. Hepburn is involved in a number of ventures in nine Nigerian states, ranging from sugar plantations to dairy production and fruit growing operations. Besides overseeing the running of the projects, he also takes a stake in each business and like he says: "If the client makes money, I make money; if the client doesn't make money, I don’t make money."

Hepburn's financial consultant soon joins the table and the talk continues about ambitious plans to export cattle from Nigeria, reviving a dormant chicken farm, planting Jatropha for biofuel production and a seed manufacturing company he has just started.

"There are an incredible amount of investment opportunities in Nigeria at the moment because in the past agriculture did not receive much attention," says Hepburn.

During the 1960s Nigeria's agriculture sector was thriving and the country was a net exporter of food. The discovery of oil however shifted the focus from agriculture and these days Nigeria imports the vast majority of its food. Even though a large percentage of the population is involved in some form of agriculture, this is mostly on a small-scale basis with inefficient farming techniques. Only 40% of arable land is currently under cultivation and 95% of produce comes from farms smaller than 10 hectares.

Since the return to democracy in 1999, the Nigerian government has made a lot of effort to diversify the economy with a specific focus on agriculture. Financial incentives, subsidies for farming equipment and fertiliser, and various research initiatives have been introduced to boost agricultural production. From a policy point of view everything is however still not perfect and there is a great need for further regulatory reforms.

A number of companies have already successfully invested in Nigeria especially in agri-processing industries but this is barely a drop in the ocean considering the potential. With almost 150-million mouths to feed and lucrative export opportunities, plenty of room exists for fresh investment.

 

'People have a misconception that everything in Nigeria is corrupt.'

Nigeria's climate is made for growing things. Hepburn’s wife confirms this by telling a story of were she used pieces of dead wood as stakes to support her tomato plants, within a few weeks the ‘dead’ pieces of wood started to grow again. Because rainfall in Nigeria varies, from the wetter south to the dryer north, different areas of the country are more suitable for certain crops than others. Hepburn regards the area between these two extremes, also known as the middle belt, as the most promising for agricultural production.

Despite all the opportunities, establishing and running a successful agriculture project in Nigeria will by no means be without its challenges. Commercial farming is still a foreign concept to many Nigerians and a large degree of ignorance around agriculture abounds. Hepburn also says that it can sometimes prove difficult to get loans from banks. He views the money he has lost in Nigeria over the past nine years as "school fees" for his current success.

And what about that crucial issue on everyone’s mind: corruption in Nigeria? "People have a misconception that everything in Nigeria is corrupt," says Hepburn. "There are some that are crooked, but there are also many officials that are honest. We personally don’t bribe a cent. I’ve torn up contracts in excess of US$100 million because someone asked if we can add a little bit extra."

As we finish and I ask Hepburn if I can take a picture of him, his wife suggests his new Mercedes sports car as possible backdrop for the photograph. He tells me that he keeps the Merc in South Africa and that he drives a Lexus in Nigeria. It seems that in spite of the money he has lost, Nigeria's agriculture sector has allowed him to make some as well.