Mechanized Soya Bean Cultivation, Cleaning and Export in Nigeria; The Feasibility Report.

Nigeria’s agricultural sector remains one of the most critical components of the national economy, characterized by significant regional diversity, a wide range of crops, and strong linkages to rural livelihoods and food security. Although data limitations still affect detailed analysis of the sector, available statistics provide a clear picture of its evolving role in Nigeria’s economic development and structural transformation.

Historically, agriculture was the backbone of Nigeria’s economy in the 1960s, contributing over 60% of Gross Domestic Product (GDP), employing the majority of the population, and serving as the main source of foreign exchange earnings. This dominance began to decline with the emergence of the oil sector in the 1970s. During the oil boom era, agriculture experienced relative neglect, leading to a significant drop in its contribution to GDP, which fell to about 48.8% in the 1970s and further to around 22% in the 1980s. Factors such as inconsistent government policies, unfavorable pricing systems, weak infrastructure, and the overwhelming focus on oil revenues contributed to this decline.

In recent years, however, agriculture has regained prominence as a key driver of economic diversification. The sector now contributes approximately 24–26% of Nigeria’s GDP and remains the largest employer of labor, engaging over 35% of the workforce. Nigerian agriculture is broadly divided into crop production, livestock, forestry, and fisheries, with crop production accounting for the largest share of output. This diversity provides a strong foundation for agro-industrial development and value chain expansion.

Within this framework, soybean (Glycine max) has emerged as one of the most important and rapidly growing crops in Nigeria. Soybean is classified as an oilseed due to its high oil content and is widely recognized for its nutritional and industrial value. On a dry weight basis, it contains approximately 38–42% protein, 18–22% oil, and a balanced composition of carbohydrates and minerals, making it one of the most nutrient-dense crops available. Its protein is heat-stable, allowing it to retain its nutritional quality during processing and cooking.

Originally native to East Asia, particularly China, soybean has been cultivated for centuries and later spread to Europe, the Americas, and Africa. It was introduced into Africa in the late 19th century and into Nigeria around 1908, where it was first cultivated in Ibadan. Since then, soybean production has expanded significantly across the country. Nigeria is now the largest producer of soybean in sub-Saharan Africa, with annual production estimated at over 1.2 million metric tonnes. The crop is predominantly grown in the Middle Belt region, with Benue State accounting for a substantial share of national output, followed by Kaduna, Niger, Taraba, and Plateau States.

Soybean plays a crucial role in both human nutrition and industrial applications. It is used in the production of a wide range of products, including soy oil, soy cake, full-fat soy, soybean meal, soy flour, soy milk, tofu, and textured vegetable protein. Its high protein content makes it particularly valuable in addressing malnutrition, while its oil and meal are essential inputs in the food and animal feed industries.

This report examines the financial viability of establishing a large-scale mechanized soybean plantation in Benue State, Nigeria, with a focus on both domestic supply and export potential. The proposed project involves the development of a 450-hectare farm, of which 400 hectares will be dedicated to soybean cultivation, while the remaining 50 hectares will accommodate processing facilities, storage infrastructure, administrative buildings, and other civil works.

The farm will utilize improved soybean varieties such as TGX 1448-2E, which mature within approximately 3.5 to 4 months, allowing for two production cycles annually under optimal conditions. These improved varieties offer higher yields, disease resistance, and better adaptability to local conditions, enhancing overall productivity and profitability.

To complement in-house production and ensure consistent supply for export, the project will also involve the aggregation of soybeans from local farmers and traders. It is projected that about 500 metric tonnes of soybeans will be procured within the first three months of each production cycle, strengthening supply chain reliability and supporting local farming communities. For export logistics, it is estimated that approximately 25 metric tonnes of soybeans can fill a standard 20-foot container, facilitating efficient bulk export operations.

The establishment of a mechanized soybean plantation in Nigeria represents a highly viable and strategic investment opportunity. With strong domestic and international demand, abundant production potential, and increasing emphasis on non-oil exports, the soybean value chain offers significant prospects for profitability, job creation, and economic diversification. By integrating modern farming practices, efficient aggregation systems, and export-oriented strategies, investors can successfully position themselves within Nigeria’s growing agro-industrial landscape.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Value Proposition 1.5 Critical Success Factor of the Business 1.6 Current Status of Business 1.7 Description of the Business Industry 1.8 Contribution to Local and National Economy 2.0 Agricultural Practice 2.1. Varieties 2.1 Planting 2.2 Manures and Fertilizers 2.3 Weeding 2.4 Climate / Irrigation 2.5 Harvesting and Yield 2.6 Herbicides 2.7 Soil Type 2.8 Diseases and Pests 3. Marketing Plan 3.1 Description of product 3.2 Product delivery 3.3 The Opportunity 3.4 Pricing Strategy 3.5 Target Market 3.6 Distribution and Delivery Strategy 3.7 Promotional Strategy 4. Cultivation / Production Plan 4.1 Description of the Location 4.2 Raw Materials 4.3 Cultivation / Production Equipment 4.4 Cultivation / Production Process 4.4.1 Pre-Export Documentations in Nigeria 4.4.2 Post-Export Documentations (Exchange Control Documents) 4.5 Cultivation and Product Cost 4.6 Stock Control Process 4.7 Pre-Operating activities and expenses 4.7.1 Operating Activities and Expenses 4.8 Project Implementation Schedule 5.0 Organizational and Management Plan 5.1 Ownership of the business 5.2 Profile of the promoters 5.3 Key Management Staff 5.3.2 Management Support Units 5.4 Details of salary schedule 6. Financial Plan 6.1 Financial Assumption 6.2 Start - up Capital Estimation 6.3 Source of Capital 6.4 Security of Loan 6.5 Loan Repayment Plan 6.6 Profit and Loss Analysis 6.7 Cash flow Analysis 6.8 Viability Analysis 7.0 Business Risk and mitigation factor 7.1 Business Risks 7.2 SWOT Analysis 8.0 Managing Export Operations

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