Agro-processing companies in Nigeria have experienced a high-profit rate in the last 5 years. The Government encourages and invests a lot in the agricultural sector thereby encouraging investors to invest in local production. The world trade organization rates Nigeria as Africa’s largest food market. Nigeria’s manufacturing industry is made up of 22.5% of the food and beverage sector which has attracted investors in the local sector thereby increasing the high level of export. According to Statista, the agricultural industry contributed 23% of Nigeria’s GDP in 2021.
Nigeria is Africa’s largest food market which gave room for investors to invest in food processing businesses in Nigeria which gave birth to the rise of food processing companies in Nigeria. A population of about 180 million of which 60% are youth shows a high labour increase. There is a need for more food processing companies in Nigeria both on a large and small scale to help absorb the unemployed youths
In this article I will be showing you how to start a food processing business in Nigeria, I will also show you various small-scale agro-processing equipment in Nigeria.
List of food processing and packing business in Nigeria
- Dry fish production
- Dry yam production
- Dry vegetable production
- Dry melon production
- Africa salad production
- Plantain chips and potato production
- Vegetable oil production
- Tomato paste production
- Palm oil production
- Cassava flour processing
- Cashew Nut processing
- Fresh and dry meat packaging
- Custard production
- Cocoa beans production
- Honey processing, etc.
The good news is that you can start on a small scale and grow into a bigger production company.
Tips on How to start a food processing business in Nigeria
Here I will be listing the processes you have to take to start your own food processing company
1. Define the type of food processing business you want to do: Your ability to define the type of agro-processing business you want to venture into will determine the equipment, licensing and cost of production. You must do a feasibility study to determine the demand for products you want to send into the market. A case study can be seen in the rate at which we have lots of people leaving the country for the UK, Europe and various parts of the world. You can choose to process dry Mellon or dry African salad and export to different countries and areas where we have Nigerians who will buy and book ahead for next time.
2. Registration of your business: Food processing, intra-state and overseas exportation requires that you register your business under various agencies such as the corporate affair commission, Ministry of Health,(NAFDAC) National Agency For Drugs and Administrative Control ,(SON) Standard Organization of Nigeria.
Corporate affairs commission registration: This is the first registration you must do if you want to operate as a legal business entity in Nigeria and beyond. Once your business is registered with CAC you can now proceed to NAFDAC and SON. The cost of having your business registered under the corporate affairs commission ranges from #10,000 to #100,000 depending if it’s a sole proprietorship or limited liability company.
The cost of registration of your company under NAFDAC ranges from #15,000 to #40,000 depending on the category. Small-scale enterprise is #15,000. Medium scale is #30,000 and large scale is #40,000. It takes an average of 30 months to get all inspection and accreditation done with NAFDAC while the Standard Organization of Nigeria takes a month after filling in the online requirements.
3. Getting of Equipment; There are several Small scale agro-processing equipment in Nigeria which is advisable to use especially as a startup. One of your main focuses is to get quality equipment at a relatively cheap price. The kind of equipment you will be using depends on the area of agro-processing and packaging you are going into.
- Drying machine: if you want to succeed in the food drying business in Nigeria, you need a good drying machine. It is highly recommended if you are going to the exportation of dry fish, dry melon, dry meat, etc. The good thing about this is that you don’t need to import it. Various local production companies can give you a high-quality dryer which can use about two to three methods in drying various products. One such company is Oxygen technology and Agro-allied services.
- Grinder: if you are going into processing and packaging dry beans, dry melon, etc, you will need a grinder. There are different grinders which are manufactured locally that can be used to grind various agro products into different sizes.
- Seiver/de-stoner: This is used to separate stones and other dirt particles from the main content.
- Boiler or cookers: with the high rate of Innovations in agro packaging and processing in Nigeria, having standard equipment that cooks or boils your agro products is important. Local designers have a lot of them that come with a thermometer and temperature regulatory system.
- Sealing machine: As a startup, you might necessarily get this machine. You can buy a pressing icon and use it in the sealing of your packages, especially the ones in nylon.
- Nylons and cartons: These two can easily be sourced locally within your environment.
- Refrigerator: There are locally built refrigerators that can do a wonderful job in the preservation of some perishable agro products.
List of Agro Processing companies in Nigeria
- Envoy Oil Industry LTD
Address: Onitsha, Anambra State Nigeria, 2 Eziachi Street/53 Obodoukwu Road, after Atani Road,
- Honeywell Flour Mills Limited
Address: Apapa, Lagos Nigeria, 2nd Gate Byepass Np Plc Premises Tincan Island
Contact: +234 1 587 8308
- Invex Foods Processing Company Ltd: They are into the production of seasoning and spices for meat.
Address: , Ikeja, Lagos, Nigeria, No 2A, Henry Carr Street
Contact: 0812 912 0666
- LoveStruck Cakes and Gifts: They are a luxurious brand who are into baking and supplying baked products to its customers within Lagos and her environ
Address: Amuwo Odofin LGA, Lagos State, No. 5, S Close, 21 roads. Festac Town.
- Kuki Tomatoes: Somzel Agro Enterprises is the mother company and they produce tomatoes pure from 100% grown pepper and tomatoes in Nigeria.
Address: Abuja FCT, Nigeria, Plot 708 Durumi Layout, Area 1, Garki.
Contact: 0902 720 6988
- Navid’s Foods: They produce 100% natural bean flour in high quantities without preservatives for sales and supply.
Address: Lagos Nigeria, No 37A Ramat Crescent, Ogudu,
Contact: 0908 334 5156
- Michga Foods Nigeria. Limited: They are into the processing of groups like cassava, maize, beans, and yam into flour
Address: Minna, Niger Nigeria, Unit C2 Technology Incubation Centre Off David Mark Road,
Contact:+234 815 666 9866
- OCOS FOODS: They are into the production of vegetable oil on a large scale
Address: Port Harcourt, No 3 Market Road, Oyigbo.
Contact: +234 905 615 7670
- Patec Foods Limited: They are into the production of beverages using agro products
Address: Yaba, Lagos, Nigeria, No 24 Montgomery road, off Murtala Muhammed Road.
South Silos and Grains Ltd
Address: 51, Bode Thomas, Surulere, Lagos
Contact: 0705 683 2920
Shash Industries Limited: they are in the production of cream liquor, bitter drinks and cucumber foods
Address: Ogun State, Nigeria, No 50 Osuke Iyesi Road, Ota.
Contact: 0808 858 7315, 0806 294 0040
Tips On How to export your agro processed product from Nigeria
Agro-packaging and processing for export in Nigeria is a fast-growing industry which is open to both, small, medium and large-scale agro-processing companies. In 2019 alone, the agricultural sector contributed a huge sum of 10.5 trillion nairas which is 25% of Nigeria’s Gross domestic product(GDP). Statistics have it that Nigeria has lost 10 billion dollars in annual exportation opportunities just from cotton, cocoa, palm oil and groundnut. This shows there is a high demand for these products much more than what is currently being exported.
There is enough room for you to join this line of business, here are a few steps you should take in order to export your agro processed products from Nigeria.
1. Registration with various regulatory bodies:
- Nigeria export promotion council: This is the body that ensures that trade between Nigeria and other countries meets the requirements as needed by both governments. This is basically if you want to do large-scale exportation. On the other hand, you can do a cargo shipment of your product using some shipping companies. These shipping companies are well-registered with Nigeria’s export promotion council and the Ministry of solid minerals.
- Nigeria customs service: They are responsible for the supervision of your product to ensure it is not an illegal shipment. You must package your product well and the quality must meet the standard as stipulated by both governments.
2. Have a ready buyer:
Before you think of exporting agro processing products, you must have an available buyer in the location. There are several ways to find buyers who will ensure that your agro product reaches the desired consumers.
- Family members and friends: for a startup, you can work directly with your friends and family members who are abroad. The reason is simple: they have contacts and a community where those who need your agro products can easily be reached.
- Join various legitimate: Online groups: with the high rate at which people are leaving Nigeria, so many online groups whose focus is to help as many people as possible to relocate are on the increase. Join one and discuss with the admin and strike a mutual business agreement.
- Search for African restaurants abroad and get their contacts: There are lots of African restaurants abroad that are running a shortage of agro products for their customers. You can start by shipping to them and get paid and through that means you can expand to several others
A List of Agro-processing and packaging equipment suppliers in Nigeria
- Oxygen technology and Agro-allied services: They are into the manufacturing of all kinds of agro-processing and packaging machines using our local materials
Address: Suite 3,His Grace Plaza, opp Easy Electronics along Jamb Office Amawbia, Awka South, Anambra State.
2. AutoPack: They specialize in the manufacturing of food processing machines used for the production of biscuits, beverages, snacks and mineral water.
Address: Opposite Ojota New Garage,379 Ikorodu Road, Lagos
Contact: 0812 946 0020, 0802 312 4812
3. Mishalummetal Nigeria Limited: They are into manufacturing all kinds of kitchen and baking equipment.
Address: Surulere, Lagos, 57, Itire Lawanson Road, Contact: 0806 371 6216
4. Fruithill Foods Limited: They are into the manufacturing of agro-processing equipment used in the production of poultry feed and fish.
Address: Ikeja, Lagos, 90, Adeniyi Jones.
Contact: 0709 433 7771, 0802 290 9067
5. Aluframes Nigeria Limited: They are into manufacturing and supplying of different kings agro-processing equipment such as pedal Garri press, mobile rotary dryer, front loading hammer mill, vibrative, pine apple crusher, plantain slicers, wet hammer mill, spice mill, Garri fryer, etc
Address: Lagos Nigeria, 27, Godi Love Street, Alimosh.
Contact: 07041984149, 08022241798, 08036049399
6. TECO Limited (Food Division): They are into the supply and fabrication of high industrial machines used for poultry feed production, palm oil milling, meat processing plants and dairy products.
Address: Alausa, Ikeja, Lagos, Plot 15 Central Business District.
Contact: 0706 947 2503, 0802 311 8490.
7. Scientific Equipment Development Institute(SEDI) Enugu: They are experts in the design and fabrication of diverse agro-processing equipment both for small, medium and large-scale production.
Address: Enugu, Nigeria, Okpara Mine Road Akwuke Enugu P. M. B. 3205