Thread by @sarnchos

Let me paint a clear scenario for massive private sector investment into rural agriculture, and let's examine the prospects for profit

#Thread

Farmers please correct me when I err

Majority of farming in Nigeria takes place in the rainy season. Little dry season farming occurs

https://twitter.com/sarnchos/status/1281637888724262918

What is the average cost to set up one hectare of land (10,000 square meters) for irrigation?

1. Borehole - 800k
2. Irrigation equipment - 800k
3. Power supply for 6 months - 400k
4. Total - N2m

Now let's look at the possible outputs from one hectare in the dry season.

Maize (with proper procedure) - 4 tonnes (N400k x 2) at 3 months per cycle
Leafy vegetables - N800k per month (x 6 months)

Etc

Without considering additional farming, preservation & logistics costs, raw output in any dry season will give us close to N1m in value per dry season

This means that within 3-5 years, an investment of N2m per hectare in dry season irrigation infrastructure will yield a tidy profit for investors

Extrapolating this investment to 100,000 hectares of farmland (2% of Nigeria's arable land) will cost about N200b (less than $1b)

However, the direct impact it will have on the economy will surpass the value of investment by several multiples

Now, what needs to be in place before such investments can thrive?

Strict laws that protect such investments, wide insurance coverage for any possible liabilities,

effective security architecture, etc

What is stopping us from adopting such a strategy?

Capital is available
Knowhow is available
Demand is more than enough

So what are we waiting for?

https://twitter.com/sarnchos/status/1281969376867102721?s=19