Last updated on September 16th, 2022 at 08:21 pm
Despite some of the security challenges in most of the North-East, many investment opportunities still abound in Adamawa State, one of the Northern states that share an international boundary with Cameroon.
Particularly for the foreign investors who are looking for ways to tap into the natural resources the state is blessed with, we’ll guide you on how to go about it and the security caution you need to take before investing in Adamawa.
11 Things To Know Before Investing in Adamawa
1) The geographical entity Gongola was renamed Adamawa on August 27, 1991, after two states were carved from the old entity as encapsulated in one of our posts, history of Adamawa
2) To the Northwest, it shares a boundary with Borno; to the west, it shares a boundary with Gombe; to the Southwest, it shares a boundary with Taraba to the Southwest.
3) It is nicknamed “Land of Beauty”
4) Its capital and largest town is Yola
5) According to the 2006 population census, Adamawa is 3,178,950, but unofficially the population of the state is close to N5 million people.
6) It has 21 local government development areas.
7) It has two main vegetation: 1) Sudan and 2) Guinea savannah
8) Adamawa is blessed with more than 40 mineral resources spread across the state.
9) It is known for its rich cultural heritage
10) The most spoken language in the state is Fulfulde. Others are Bacama, Bali, Bata among others.
11) Islam and Christianity are the two major religions in the state.
What Are The Business Opportunities in Adamawa?
Most times, challenges bring about opportunities, as unstable as the security situation of Adamawa is, the state holds some opportunities for investors within and outside Nigeria. Some of them are:
- Groundnuts farming
- Cotton production
- Investing in tourism
- Haulage business
- Maize farming
- Yam exportation
- Cassava farming
- Guinea corn
- POS business
- Millet production
- Educational institute and training
- Computer training
- Mining investment
- Transportation business
Before the discovery of crude oil, the Northern region generated revenue from the cultivation and sales of groundnut.
Nigeria has a large market for groundnuts in the international markets, some of the importing countries are China, South Africa, Turkey, and Indonesia.
It’s one of the major non-oil products through which Nigeria generates revenue. It’s Consumed as peanut and groundnut oil is used for cooking, yet the economic value of groundnut in the state has not been fully explored.
Farming is one of the lucrative businesses in Adamawa that is yet to be explored by investors. Apart from local consumption by farmers and neighbouring states, large investments can be undertaken in the state by employing international standards.
Cotton is cultivated in large quantities in Adamawa, the major problem mitigating against this potential is connecting to the right market.
At the time of this research, no one is yet to look into setting up a commercial cattle ranching in Nigeria, although some state governments are already making this plan.
The Fulanis in Adamawa still trek from the state to another state to find pasture for their cattle, investment in ranching is huge but investors would get value from their investment.
Investing In Tourism
Blessed with many cultural and tourist centres, Adamawa houses attraction locations like Kamale Mountain Peak in Michika, Mandara Mountains, Three Sisters Rock in Song, Kiri Dam, Ruwan Zafi, Kwandree Coldwater spot in Michika, Nuhu Auwalu Wakili’s Palace, and Sukur World Heritage Site.
Upgrading of these centres through investment partnership with private sectors would make them global tourists attraction centres, this is one of the sectors, investors can invest in.
Adamawa houses large-scale farmers, they need transportation to move the agricultural produce to states across the country and other international markets.
This is an investment opportunity in the state for an investor who wants to fill the huge gap
Other Agricultural Farming
Despite the government’s claim that Nigeria no longer imports rice and maize, these products are still being smuggled into the country through illicit and porous Nigerian borders.
When there is a scarcity of essential things and consumables, people might be desperate to find any means to meet their needs.
Large scale farming of agricultural products like yam, cassava, guinea corn, millet can resolve the scarcity created by government policy.
Nigeria’s population is more than 200 million and the demand for agric produce is high.
Point of Sales machines is a business that has fully been explored in many states in the Southwest and other parts of Nigeria and it’s still being deployed in local areas to ease cash collection.
Many people are interested in this business, but due to financial constraints, they are unable to. It’s another lucrative business opportunity investors can go into.
The Federal Government focuses on crude oil as if that’s the only mineral resource the country is blessed with. And in actual sense, there are large deposits of other resources.
For instance, Adamawa has more than 40 mineral resources, they include:
- Iron-Ore (use for steel)
- Lead (car battery)
- Rock Cystal
- Glass Sand
- Clay Minerals
- Gold Dust
Stages of Doing Business in Adamawa State for Foreign Investor
- Have a unique business name i.e name reservation with the Corporate Affairs Commission.
- Company incorporation with shared capital of N10,000,000 at the CAC office (this is done online)
- Pay stamp duty
- Sign declaration of compliance at the State High Court
- Get company seal.
- Register for Tax Identification Number (TIN)
- Register for personal income tax at Adamawa State Board of Internal Revenue
- Inspection from the State Ministry of Commerce and register the premises
Is It Safe To Invest In Adamawa?
Despite it its rich resources and arable land plus its closeness to another country, investors’ move to invest in Adamawa at this time is unsafe.
The state is unsafe due to the activities of Boko Haram who have killed and still kidnapping people and collect ransoms to fund their terrorist activities.
In fact, the Boko Haram terrorists and Islamic State West Africa (ISWA) severally carried out attacks on military posts and in the state. They also attack police station on October 10, 2021.
If you must invest in the state, take your personal safety seriously and avoid traveling alone, have well-armed security personnel around.
Apart from insecurity in the state, other challenges you are most likely to face are
- Poor power supply
- Language, but you can communicate through your PA when interacting with locals.