Kwara
Nigeria
Sector
Agriculture & Agri-processing
Investment Opportunity
Investors have the opportunity to capitalise on the current high demand for staple foods by investing in the cultivation and processing of maize in Kwara State, situated in central Nigeria.
The focus in Kwara State is on the cultivation of six crops: cassava, rice, maize, cowpea, soya beans and groundnuts. Nigeria is a net importer of agricultural commodities and any investment in the cultivation and processing of maize will surely realise good returns.
Maize is among the most important crops in Nigeria but poor seed supply, inefficient marketing, and low investment in research are among the factors that have limited production. Current production is about 8 million tonnes but research has shown that by using proper farming techniques yields per hectare can be about 4.2 tonnes from the current 1.5 tonnes, suggesting that national production could hit 20 million tonnes.
Sector summary: Nigeria's fixation on its oil industry has left the agriculture sector largely undeveloped. In recent years, however, there has been a shift in thinking and the country has identified agriculture has the main driver of future economic growth.
Kwara State has been the clear leader of this agrarian revolution. With enabling government polices, the state has seen a number of significant investments in the sector. The goals of the state government are to ensure that Kwara State produces enough food for the local population as well as to export to the rest of Nigeria and international markets. Agriculture must be seen as a business, with more commercial farmers.
The state has nearly two million hectares of uncultivated arable land which it wants to put to work. A favourable climate and good soil support rain-fed agriculture and livestock production. The natural vegetation consists broadly of rain forest
and wooded savannah. The landscape of undulating hills, valleys and plains is traversed by the Niger River and its tributaries. Annual rainfall is between 1 000mm and 1 500mm, while the average maximum temperature ranges between 30°C and 35°C.
Reasons to Invest in Kwara State
Incentives: The Kwara State Government is willing to extend a number of incentives to serious investors. These include the provision of land and infrastructure, tax holidays and assistance with obtaining financing.
Labour: Kwara State is home to the well-respected University of Ilorin and construction of the new Kwara State University will soon be completed. Kwara State therefore has a large number of graduates who can be employed by companies investing in the state.
Cargo terminal: A new cargo terminal at the Ilorin International Airport will soon be completed and will allow for goods to be transported via air, both locally and internationally.
Power supply: Due to the recent completion of the Ganmo sub-station, the state capital, Ilorin, currently enjoys very close to 24 hours a day of uninterrupted power supply. Many business owners are delighted by the fact that they have to make very little use of generators.
Political will: The government of Kwara State is devoted to creating an enabling environment for business and investment. The state is also committed to continuity of policies which will ensure that an investor friendly environment remains even after the end of the current administration's tenure.
Investment insurance: Nigeria is a member of MIGA (Multilateral Investment Guarantee Agency) and the ICSD (International Centre for Settlement of Investment Disputes).
