Foreign and local investors have the opportunity to invest in the processing of groundnuts in Kwara State, situated in central Nigeria.
Investment Opportunity
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.
The current administration has identified groundnut as one of the six crops it is focusing on, along with cassava, rice, maize, cowpea and soya beans. Groundnut is currently being grown in the Kaiama, Edu and Patigi local government areas of Kwara State.
Nigeria is the world's fourth largest producer of groundnuts and the climate and soil in Kwara State is especially favourable for the cultivation of the crop.
Groundnuts are used for oil extraction, food and as an ingredient in confectionery products. Following extraction, the residual cake is processed largely for animal feed, but is also used for human consumption. The quality attributes that are important for end uses of groundnut vary among the developed and developing countries.
Groundnuts also have a variety of industrial end uses. Paint, varnish, lubricating oil, leather dressings, furniture polish, insecticides, and nitroglycerin are made from groundnut oil. Soap is made from saponified oil, and many cosmetics contain groundnut oil and its derivatives. The protein portion of the oil is used in the manufacturing of some textile fibres. Groundnut shells are used in the manufacture of plastic, wallboard, abrasives, fuel, cellulose (used in rayon and paper) and mucilage (glue).
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).
Contact Details Investors interested in this project should contact Fela Ibidapo, Special Assistant to the Executive Governor, Kwara State (Investments) at infonigeria@gan.co.za
