Chief Executive Officer and Founder, The Abadini Group, Mr. Abraham Adonduwa is an emerging leader in the agric-economy with more than 200 hectares under cultivation. In this interview with Deputy Group Business Editor, Taofik Salako, Adonduwa speaks on the challenges and prospects of the Nigerian agricultural agenda among other issues
What is the prospect of agribusiness in Nigeria?
I think the future of agribusiness is very bright. Nigerians are obviously becoming more appreciative of the need for the country to achieve food sufficiency and reduce our current reliance on imported food items.
Besides the fact that our economy desperately needs this focus on agriculture in order to grow, we also should be mindful of the harmful effects of the preservatives used on these imported food to increase their shelf life.
So, when you look at all the metrics- population, food demand and health, everything points to continuing and increasing relevance of agribusiness to Nigerian economy.
What are the incentives needed for the success of the agric-centred growth agenda of government?
We have seen commendable focus on agribusiness by the government in recent years. But I think government needs to do more given the importance of agriculture to the national economy and government’s agenda of job creation.
I think agribusiness industry needs more incentives including tax waivers, single-digit loans with reasonable tenors, and a massive patronage of made in Nigeria products, amongst others.
What are the challenges facing agribusiness?
The main challenges are access to finance, insecurity and lack of human capital. There are other challenges like unfavourable government policies but so far the current administration has been fair to the agribusiness sector.
How sustainable is the rice domestication policy of government?
We can testify that the policy has spurred Nigerians to action. Abadini is a typical example as are a couple of other brands currently changing the narratives of rice farming and production in Nigeria. We hope the favourable policies and government support will continue even after the 2023 elections.
What’s your experience in the area of access to finance?
The government still has a lot of work to do in this regard. Right now it is rather difficult to obtain funds from a bank even after meeting its stringent conditions and even though the Central Bank of Nigeria (CBN) mandated banks to increase their loan to deposit ratio.
The CBN’s Anchor Borrowers’ Programme under the amiable, committed and unassuming Central Bank Governor, Mr. Godwin Emefiele is highly commendable.
For the first time we witnessed a government that is committed to alleviating the suffering of Nigerian farmers through palliative measures and incentives.
Without doubt, it has boosted the agricultural sector as more people have shown interest to go into far mining or many people have seen farming as a viable venture.
Back to your question, we are yet to enjoy any form of support from the government but we are hopeful that the government will recognise our efforts and partner with us.
What’s the vision of Abadini and what strategies have you put in place to achieve this?
Abadini’s vision is unique because our major driving factor is achieving food sufficiency by providing locally produced and healthy food products for every Nigerian home.
Subsequently, we will set our sight on exports because by so doing we will not only create more wealth and empower people but also earn much-needed foreign exchange required to catapult our economy from what it is today to what it should rightly be as the giant of Africa that we are.
Abadini will become the pride of the giant of Africa and the best news is the fact that we are a youth-driven company. Having said that, we have put in place strategies that will help in pushing our vision.
We recognise that the market opportunity for our products is beyond our imagination and current situation; rice, maize, housing-which encompasses our block industries and housing projects, processed and packaged meat-including but not limited to pork, beef, chicken, turkey, fish and animal rearing including pigs, chicken, goats, cows and sheep.
We believe that with substantial growth capital we can decisively claim market leadership and substantially expand the market potentials for the company.
We also take very seriously the nascent logistics arm of the group, whose sole focus is to ensure quick deliveries while reducing our current costs of nationwide deliveries and ensuring that we can sustain cost effective prices and maintain a competitive edge.
Currently, our fleet of delivery vehicles stands at six with a view to expanding to meet nationwide demands. Our online presence with Abadini Agritech promises a huge opportunity to expand our markets around the globe.
The Abadini Group is proudly Nigerian: young, vibrant and burning with ideas and a drive to cater to 200 million Nigerians locally and a global market that is growing rapidly and brimming with opportunities.
Two years ago, we began on a five hectares of farmland and proceeded to process with locally manufactured machines and bagged in poorly made woven sacks.
The result, our sacks had a brand name that peeled off and the rice was unclean and packed with stones. But, we completely sold out in two weeks! This was all the impetus we needed to fuel our drive to succeed.
Now we have a brand new complete rice milling line with 40 tons per day capacity. We also expect to increase our production capacity to 130 tons per day.
Our inaugural brand; Abadini Rice, is very well received in several markets with demand growing exponentially. We can now aim to inspire the world by showing that it is possible to offer excellent customer service, achieve excellence in design, production, branding and delivery while impacting the lives of employees, investors, distributors and indeed the entire Nigerian community and beyond.
We operate 200 hectares of farmlands in Benue State and we have currently set up livestock ranches in Benue and Abuja. Our multi-million naira rice factory, which is second only to the State Governor’s rice factory, is located at the heart of the industrial layout in Makurdi, where we provide jobs for scores of indigenes and residents.
A grand commissioning of this factory will be organised at the earliest possible date and well publicised. We have warehouses in Lagos and Port Harcourt, from where we are rapidly penetrating the markets, supermarkets and having easy and direct access to consumers.
Do you consider risks of policy somersaults by government, for instance liberalisation of the rice business and allowing importers to import?
I am confident that would not happen under the current dispensation. However, Abadini is the preferred brand because we can compete with any foreign brand anywhere in the world.
I said this because there is a claim by the Federal Government that the country produces 150,000 bags daily. For me, the Federal Government alone is in the best position to confirm or deny this.
And if the claim is true, it is a plus for us as a country considering the amount being spent on rice importation yearly.
We all know that home grown companies will not only provide jobs for the youth, it will also strengthen our local economy.
What are the opportunities and challenges of Africa Free Trade Continental Agreement?
The opportunities far outweigh the challenges in my opinion. Imagine a unified Africa like we have the United States of America. Imagine free trade between sister countries.
Imagine retaining vital resources within the African Continent. Imagine how much that would mean to our collective economies.
But, as an entrepreneur, I am an avid idealist who also tries to always remain grounded. So, in as much as the prospect of an Africa without borders excites me immensely, I am reminded daily of the human factor issue which continues to dog our daily existence amongst other issues.
I am reminded that the task ahead is beyond daunting. However, this is an ideal that I hope to see in my lifetime. One that I strongly believe is the key to Africa taking her rightful place as a nation of great people, as leaders of the world.
This is why I am leading a company that is investing in the youth population; so that we can lead the rest of Africa, so that we can unite and conquer the world together, and so that we can shape the future today.
Who are the investors in Abadini?
Abadini is a privately held company with board of directors who are helping to drive the mission and vision of the organisation. Again, I am happy to say that 99 per cent of us are less than 40 years.
We also have an experienced hand in S. Adondua, a member of the board and shareholder. He is a seasoned Chemical Engineer with over 35 years working experience.
He serves in advisory capacity and offers guidance and assistance, bringing his wealth of experience and vast network to bear.
Also, we have investment categories which allow an ordinary Nigerian to invest. You may call it ‘Abadini Investment Inclusion’ in the sense that we have a programme called Abadini Growers’ Programme whereby an investors can sponsor a unit with N250,000 at 25 per cent return on investment (Rol) in eight months or invest in 50 units and above and get 27 per cent (Rol).
You may wonder why the healthy returns. It is simple. At competitive interest rates, you can invest and get your money back including interest within the shortest possible time. You can also choose to revolve your capital and interest for another cycle.
Payback period is within six to eight months, depending on the farm type, you can grow your investments from seeds to trees.
As said earlier, with as low as N50,000 you can be an investor and watch your money work while you sleep. Investments are risky by nature, but we’ve gone an extra mile to ensure your investments are 100 per cent insured and backed up by reputable and experienced insurance providers.
