Agro Investors on the platform of Madaki Agro Services Limited have said they are targeting an investment of 100,000 hectares of Arable land in soya beans cultivation in the next five years.
The executive director, Operations, Mike Enahoro stated this while speaking with Journalists at the group’s investment briefing in Abuja, Yesterday.
According to him the target is to have 100,000 hectares by the end of five years, noting that the target is just a drop in what Nigeria arable opportunities have. “Nigeria still has about 1.6 million hectares”, he said.
Enahoro assured that they are targeting 3 tonnes, adding that if there is a natural disaster or herdsmen attacks, the Nigerian Agricultural Insurance Commission Company (NAIC) will steps in to remedy the situation.
He maintained that “The role of government is to create an enabling environment, support investors with investment programmes such as the Anchor Borrowers programme, accelerate and support us with all necessary platforms.”
In his presentation on the investment opportunities earlier, the company’s, executive director of Finance, Chijioke Ofomata said “The Madaki Agro Services Limited is working to unlock currently untapped value in the agriculture and agro allied processing sectors.
He revealed that the company had acquired 10,000 hectares of farmland in Ganjuwa local Government area of Bauchi State for the sole purpose of growing cash crops.
“These includes Soya beans, groundnuts, wheat, rice, sorghums, cowpeas with a model of planting and harvesting 3 cycles in a year”
He noted that “The Madaki business model is based on being an anchor/aggregator of small holder farmers (Anchor Borrowers Program) principally, designed to empower communities and create wealth for rural farmers as well as activate company owned farming which will drive further, both productivity and profitability”.
Stating the investment opportunities, Ofomata said, “We are currently looking for investors who will like to invest funds over a period of 7 months. The Return on Investment (ROI) is 40% over the period and the minimum investment is 10 hectares (2.14m) and in multiples of 10 hectares thereafter.
He noted that “Nigeria is the second largest producer of soya beans in sub Saharan Africa, noting that in 2016, the country only produced about 680,000mt though the annual consumption demand is 2.2mt and that the local demand has been driven mainly by the poultry, fishery and edible oil industries”.
The Finance director assured that soya bean meal is a vital and professed source of protein in compound feeds and accounts for 20-30% in poultry feed and 20% of fish feed composition.
He further assured that the yield of 3mt will be insured by NAIC, adding that the Company had also secured an off-taker agreement of 50,000mt.