Kaduna offers investment opportunities in a wide variety of sectors, including agriculture, food processing, light manufacturing, meat and poultry processing, and tourism. Development of the New Kaduna Millennium City also provides an array of investment opportunities.

Agriculture

Agriculture accounts for an estimated 56 percent of Kaduna’s GDP and employs approximately 4 million people. Kaduna produces 22 percent of the country’s maize, 69 percent of soya bean, 36 percent of cotton, and 10 percent of ground nuts (peanuts). The State trades its agricultural produce to neighboring states. The sector is dominated by wet season planting and an irrigated dry season planting. Most farmers currently produce cereal crops such as maize, sorghum, millet, and rice during the rainy season. Cereal crops are exported to surrounding states and are an important source of cash. Kaduna is the largest producer of rice in Nigeria and it exports substantial quantities to other Nigerian states and African countries. The state is also an important producer of fruits and vegetables that are supplied to the south.

While agriculture output is large and the main source of income in Kaduna, agricultural productivity is generally low. There is great, untapped potential in the sector, given the rich arable soil, optimal weather conditions across the state, and limited use of modern farming inputs. Farms that have invested in seeds and agro-chemicals and that have adopted new technologies and innovative production techniques have seen dramatic improvements in productivity. The Kaduna State Government offers to partner with investors in commercial agricultural investments with the Commercial Agricultural Development Funds (CADF). There are also investment opportunities in tree crops and forest plantations. The State is well endowed with teak, melina, and pine.

Food Processing

Formal food processing businesses have not developed in Kaduna on a significant scale. Most of Kaduna’s food processing activities are performed by small scale, informal businesses. The rapid rate of urbanization, increasing participation of women in the work force and rising incomes are driving a trend towards convenient, easy to prepare processed foods. This rising demand, combined with easy access to transportation and Kaduna’s large agricultural output, makes it economically feasible to process food close to the place of production. Recent larger-scale investments have taken place in processing fruits, vegetables and vegetable oil, and have proven highly profitable. With agriculture accounting for well over 50 percent of state GDP and a high proportion of output requiring some basic processing, food processing is an investment-worthy sector.

Light Manufacturing

Opportunities in light manufacturing have multiplied and the industry has expanded as the construction industry grows. Construction in the city of Kaduna is growing fast as new extensions to the city are built. The State Government has been working in partnership with the private sector on project ideas and the means for establishing and expanding industrial production. This has enabled the growth of industries related to wood-based products, building materials, household items, and tools. Supply has not kept pace with growing demand, both for Kaduna and the surrounding states. Demand from neighboring northern states and countries is predicted to continue to rise because investment in these regions in light manufacturing has not been forthcoming due to their poor infrastructure, high-energy costs, and poor business environments.

Meat and Poultry Processing

Nigeria has one of the largest livestock populations in Africa and Kaduna is the center of trade in livestock and livestock feed, attracting investors from neighboring states and countries. The State currently has 11 large livestock markets that make up 2.9 percent of Gross State Production. Nigeria’s demand for meat and poultry has risen and will likely remain strong with increased urbanization, high income-elasticity for meat, women joining the workforce, and lifestyle changes in favor of fast food and supermarkets.

Supplies of standard cuts of meat and poultry produced with hygienic techniques have not kept pace with domestic demand. Between 2003 and 2005, the price of beef increased by 30 percent and price of chicken by 45 percent. The price of lamb and goat recorded more modest increases. The more rigorous buyer requirements, increasing demand for meat and poultry, and the availability of locally produced livestock feed helps to make investments in meat and poultry processing increasingly attractive and profitable.

Tourism

As incomes increase among Nigerians, expenditure on leisure will rise and this will lead to increases in domestic tourism and international travel. Kaduna’s natural beauty and historical sites makes it suitable for tourism. The state government has been investing in tourism-related infrastructure, such as roads, electricity lines, rural telephone lines, and water supply.

The Kaduna State Tourism Board (http://www.kadunastate.gov.ng/culture.htm) has identified several areas, activities, and sites that offer potential in the tourism industry. These include:

• Kangimi Dam Tourist Resort – high-end entertainment center with picnic ground, games facilities, restaurants, fishing area, and a golf course.

• Kamuku National Park – national park offering eco-tourism experiences, including hiking in natural preserves, waterfalls, bird-watching, and rafting. The National Park will also include chalets, conference room and reserve museum.

• Zaira Holiday Resort (located in Sabon Gari) – amusement park with games facilities, restaurants, fishing, and picnic grounds.

• The New Kaduna City (located in Kaduna City) – theme park, shopping center and entertainment facilities, including a mini zoo, botanical garden, golf and polo course, crafts village, night clubs, theaters, and an international conference center.