When Bauchi state was part of the Northern regional government in the 1960s, it contributed massively to the economic growth of the region and the central government at the time. The stable source of revenue in the state agriculture.
Even as it became a state in 1976, Bauchi continues to be home to a lot of business opportunities for foreign and local investors.
The investment potential of Bauchi isn’t just because of the abundant resources in the state, but because it is strategically located in the Northern part of the country.
In terms of access to the international market, it doesn’t share boundaries with any foreign country, however, two of its neighbouring states do.
Before delving into the investment opportunities in Bauchi, it’s very important to ask some pertinent questions before making such an investment decision.
Is Bauchi a Good State To Do Business?
Let’s critically look into the economic viability of the state with the slogan, “Perl of Tourism” and this should matter:
- Ease of doing business
- Business policies by the state government
- Security
In terms of Ease of doing business, Bauchi State was ranked credibly well according to business research by the Presidential Enabling Business Environment Council (PEBEC) in conjunction with and the National Economic Council (NEC).
Bauchi is one of the best states that make the provision of power supply to its people accessible. Electricity is one of the key indicators in assessing an investment-friendly environment.
And in the overall ranking, Bauchi state fourth best state to do business in Nigeria, scoring 6.54 over ten.
In terms of investment policies by the state government, at the time of publication, we can’t independently verify if the state has any of such policies to attract investors. However, the administration of Mohammed Abdullahi Abubakar, former Bauchi state governor, claimed that there was a provision of land and flexible tax for investors. Again, we can’t verify this right now because continuity of policies is an issue in Nigeria most especially when an opposition party wins an election.
In terms of security, the state capital is peaceful like most other parts of the state. However, the security challenges of its neighbour have infiltrated the once peaceful state.
The fact that it shares boundaries with Yobe, one of the states facing Boko Haram challenges, makes Bauchi a target. As such, the state government through a senior government official disclosed that four local government areas were put on high-security alert, they include Zaki, Dambam, Darazo, and Gamawa.
In these locations, InfomediaNG Business Solutions urge investors to be watchful and carry out a security assessment of the four LGAs if they must invest there. Apart from that, other parts of the state is suitable for business and investment.
So, what are the business opportunities in Bauchi for local and foreign investors?
There are more than 30 investment opportunities in the state. They are:
Investment in Water Treatment
Bauchi state is home to 10 verified natural resources, one of them is limestone which is used for water treatment and purification. This would be a good investment because thousands of people and homes who can’t afford a borehole are ready to pay for clean portable water.
Clean water is also in high demand for industrial use in food manufacturing plants. Apart from this, limestone is also one of the major raw materials for the mining, paper production among others.
Dairy Farming
The state has thousands of livestock like cattle, goats, sheep among others. These are sources of dairy to meet the daily needs of the Nigerian population. Investment in dairy in Bauchi will be a fantastic Return On Investment because the raw materials are ready to be tapped.
Groundnut Oil Factory
One of the agricultural produce that generated millions of naira for the Northern in the 1950s to 60s was groundnut. There are thousands of groundnut farmers in Bauchi and are ready to supply in large quantities to groundnut oil manufacturing companies.
Jewelry Factory
Bauchi is surrounded by states that do not have gold, thereby making a good investment destination for foreign investors to establish a jewelry company in the state
Apart from that, Nigeria’s taste for expensive jewelry made of gold is epic. With the population of Nigeria, establishing a jewelry production factory in Bauchi state is another investment opportunity for someone who wants to tap from the natural resources.
From time immemorial, gold has never been out of date, in fact, some Nigerians now prefer gold-coated wristwatches, gold-coated shoes among others.
Animal and Poultry Feeds Production
Considering the large concentration of livestock and poultry farmers in the state, thereby making demand for feeds essential for the business survival of the owners.
Tourism Investment
For an investor who is looking for a Public-Private Partnership investment, Bauchi tourism would be a great choice. The state is blessed with beautiful wildlife and game reserve.
You choose to sign an MoU with the state government in terms of resort development, tour packing, and management among other investment opportunities in tourism.
Hotel And Hospitality Business
Tourism investment and hotel and hospitality are like mouth and the tongue, they are always together. They are embedded in each other. Where tourism thrives, a hospitality business like building hotels is going to be a good investment.
This is because the influx of tourists into the state also means they would always get accommodation to sleep. It could be short-let.
Cab Business
Thousands of tourists visit Bauchi every day even as there are security challenges in some of the states it shares a border with. The thousands of visitors that come to the state will definitely be transported from one location to the other, this makes investment in cab business in the state lucrative.
You don’t have to buy a car in large quantities for your cab business, you can start with just a car, it could be your personal car. Just make sure is neat and has the components that would make tourists enjoy their ride.
Farming Business
With its two distinctive vegetation zones: 1) Sudan savannah and 2) the Sahel Savannah, the state is suitable for farming.
Filling Station
The higher the vehicular movement in a state, the more filling station makes more sales. Bauchi is known to be a link to seven states. This is another business you may want to consider.
Farming Equipment Rentals
With a good number of large-scale farmers, if you have a huge amount to invest in agribusiness, this is another option. You can also make your machines available for other farmers to rent. This means two purposes for you: for farming and also making money from equipment rentals.
Food Processing
Most of the farmers take their raw foods to markets to sell. For an investor who looks beyond the local market, food processing is going to be a worthy investment opportunity in Bauchi for you.
Starch Manufacturing
Starch has a lot of raw materials. They include maize, potatoes, wheat, tapioca, rice, and sorghum among others. Economically, these raw materials are cultivated in several villages in Bauchi state.
Meat Packaging
In the past, a local meat package called “kilishi” was popular in the Northern states, today, kilishi is packaged and sold in other states. But there is a huge market for meat packaging beyond kilishi to meet global standards so that they can be exported to other countries around the world.
Flour Mill Business
Flour is made from wheat, corn, oats, peanuts, potatoes, soybeans, and rice, these products are cultivated in the state, thereby making Bauchi is a good location for flour mill business.
Zobo Drink Processing
Apart from using Roselle-Hibiscus sabdariffa L for drugs and food production, the leaves are also used for zobo drink, in Nigeria. Zobo drink is called different names across the world.
Leather Works
The abundant availability of cattle, goats, sheep makes Bauchi state a great state to start leatherwork factory where leather bags, shoes, and others can be produced in large quantities for sales locally and for exports.
Livestock Fattening
The world has moved beyond the nomadic rearing system, apart from being stressful and come with a lot of dangers, it isn’t also as productive as cattle fattening.
For instance, cattle fattening is a livestock production practice that reduces cattle movement and makes provision for their feeding in a confined place.
They grow bigger and bring in more revenue for the owner. Cattle fattening is another investment opportunity in Bauchi that is yet to be tapped into its fullest. It is capital intensive but the investment is worth it.
Electricity Generation Company
In 2020, data show that the United States of America generated 19 percent of its electricity from coal.
Interestingly, Bauchi state has large deposits of coal which is an investment opportunity for investors who may want to set up PPP business
Recap:
Once again, some of the businesses you can choose from in the state are:
- Cement manufacturing (because Bauchi is blessed with gypsum, one of the raw materials for cement manufacturing)
- Tourism investment
- Hotel and hospitality business
- Cab business
- Investment in water treatment
- Dairy farming
- Groundnut oil factory
- Jewelry factory
- Animal and poultry feeds production
- Livestock fattening
- Electricity generation company
- Farming business
- Filling station
- Farming equipment rentals
- Food processing
- Starch manufacturing
- Meat packaging
- Flour mill business
- Zobo drink processing
- Leatherworks
Apart from considering the economic value of natural resources in the “Pear of Tourism” state, you can also pick from the aforementioned list of business opportunities in Bauchi State. The state is also one of the sesame-producing states in Nigeria, however, it’s also very important to conduct market research before embarking on any business venture, very pertinent.