Key Highlights
- Nigeria's ginger output stands at 768,305 tons, making it the world's second-largest producer.
- A ₦40 billion ginger production and processing hub is planned for Kachia, Kaduna State.
- Investors are urged to transform underutilized agricultural land, with an estimated 77 million hectares of arable land available.
- Moor Farms is piloting an estate-based model with 400-acre estates in Kogi State, priced at ₦6 million per acre.
- Projections for a ₦6 million investment in Moor Farms estates show a first-year return of ₦635,000 and a second-year return of ₦720,000.
Nigeria's agricultural sector is experiencing renewed momentum, with key initiatives aimed at boosting production, enhancing value addition, and attracting investment. Stakeholders are emphasizing the need to move beyond raw commodity exports and embrace processing, technology, and structured investment models to unlock the sector's full potential.
The ginger industry, in particular, is showing signs of revival. Despite a multi-year production crisis triggered by blight, Nigeria remains the world's second-largest producer of ginger, harvesting 768,305 tons annually across 86,911 hectares with an average yield of 8,840 kilogrammes per hectare. Industry leaders, including Dr. Victor Iyama, Chairman of the Board of Trustees of the Federation of Agricultural Commodity Association of Nigeria (FACAN), are advocating for a focus on production restructuring, market expansion, deep processing, and the application of science and technology. Iyama stressed the importance of quality, transparency, and traceability, urging the adoption of digital traceability systems to meet rising global demand, particularly from Europe and the United States, where the food traceability market was valued at over $19 billion in 2023 and is projected to exceed $34 billion by 2030.
To further bolster the ginger sector, the Federal Government has announced plans to establish a large-scale ginger production and processing hub in Kachia, Kaduna State. This ₦40 billion project, jointly financed by the federal and state governments, is intended to be Africa's largest ginger processing facility and a catalyst for rural industrialization. The initiative aims to increase output, reduce post-harvest losses, and strengthen export value by shifting farmers from selling raw produce to processing and exporting higher-value products. Senator Sunday Katung, representing Kaduna South, highlighted the project's potential for job creation and wealth generation in farming communities.
Beyond specific commodities, there is a strong call for transforming Nigeria's vast underutilized agricultural land into high-performing economic assets. Olumuyiwa Adewunmi, Chief Executive Officer of Moor Farms, is urging domestic and international investors to adopt an investor-driven farm estate model. Adewunmi described millions of hectares of unused farmland as "sleeping capital" capable of delivering both national food security and investor returns, provided there is the right mix of finance, technology, and professional farm management. He noted that Nigeria has an estimated 77 million hectares of arable land and faces an annual food supply deficit of about $22 billion, presenting a commercially viable entry point for disciplined investment into primary production.
Moor Farms, operating under its parent platform Moor Agro-Finance and Investment Bank, has introduced an estate-based investment model where investors acquire titled, income-producing farmland parcels. In Kogi State, the company is piloting a 400-acre estate where individual investors can purchase one-acre parcels for ₦6 million. These estates are designed for production of cashew (40% allocation), cassava (35%), and corn (25%), with investors having the flexibility to adjust this mix. Adewunmi projects that a ₦6 million investment will generate ₦635,000 in the first year and ₦720,000 in the second year, with a cumulative revenue of ₦843,000 within the initial operating cycle. Moor Farms has already closed its pilot fundraising round at ₦2.7 billion.
The estate model also addresses the critical issue of post-harvest losses, which are estimated to be around 40% across the sector due to storage and logistics challenges. Each estate will incorporate on-site processing facilities to immediately process harvested output, aiming for "zero waste." Moor Farms utilizes technology, including agricultural drones for surveillance and plant health monitoring, and benchmarks its produce against pricing on the AFEX Commodities Exchange. The company is also developing a warehouse receipts system to enable stored crops to serve as collateral for formal bank financing. Moor Agro-Finance and Investment Bank aims to extend these financial and technological tools to smallholder farmers traditionally excluded from formal credit systems, addressing the fundamental issues of land and finance security in Nigerian agriculture.