About Hongabad
HONGABAD AGRO LIMITED is a private business entity set up by the Redeemed Christian Church of God, Lagos Province 48 and registered as a private limited liability company by the Corporate Affairs Commission (CAC) under the Companies and Allied Matters Act (CAMA) 2020.
The company was initially registered by the Corporate Affairs Commission (CAC) and began operations in September 2021 under a business name - Hongabad Agro Enterprises in September 16, 2021.
Hongabad Agro Enterprises later metamorphosed to a private limited company and registered with the Corporate Affairs Commission (CAC) as Hongabad Agro Limited in July 8, 2022 with the rights of shareholdings and institutionalizing of corporate structure.
The company was gifted with one hundred and ten acres (44hectres) at Oluwo-Ake Village and got a twenty year renewable lease of eighty two acres while additional two acres was acquired giving of eighty four acres (33.6hectres) at Mabon Village in Obafemi Owode local government Area of Ogun State, Nigeria. This gives a total number of one hundred and ninety four acres (77.6hectres) while plans are in place to increase the farmland through further acquisition.
Hongabad Agro Limited, as part of its funding plan, commenced operations with a 5% loan facility of N20million granted by the RCCG, LP48 (the parent organization) on a five year moratorium period which has been increased to N30million as at August 2022. The facility is structured to be accessed on a periodic need basis. (Please, see appendix four for the loan amortization schedule).
Our Company
HONGABAD AGRO LIMITED is a private limited company set up by the Redeemed Christian Church of God, Lagos Province 48 and registered as a business name by the Corporate Affairs Commission (CAC) under the Companies and Allied Matters Act (CAMA) 2020.
The objective of this entity is to pursue the mandate of the General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adejare Adeboye on commercial agriculture project under two cardinal focal points:
Massive food production for the teaming population and employment generation for the unemployed youths both within and outside the mission
The company was officially registered by the Corporate Affairs Commission (CAC) in September 16, 2021 with a business name registration number 3470233 and principal place of business at RCCG, Lagos Province 48, Main Arterial Road, Banana Island, Ikoyi, Lagos.
The principal business activities are farming and marketing of food produce, trading, imports, exports, and general contracts.
The company was gifted with 110 (one hundred and ten) acres and has a renewable lease agreement of 20 (twenty years) on another 82 (eighty two) acres of land making a total of 192 (one hundred and ninety two) acres of farmland in two different locations at Obafemi community near Abeokuta, the Ogun State Capital. Additional two acres was acquired by the company in the same location of the eighty two acres bringing it to 84 (eighty four) acres in the same location while the total land both (gifted and leased) is 194 (one hundred and ninety four) acres.
The first location (titled Location A) has 110 (One hundred and ten) acres with a six-bedroom farmhouse (three of which are ensuite), two generating sets, two boreholes, a pig pen house with eight compartments and two rooms, one generator house and a waste incinerator.
The second location (titled Location B) has 84 (eighty four) acres of farmland in which operational activities have commenced there as well.
There is a registered survey plan on the 192 (one hundred and ninety two) acres of land with plan number OG/2739/2017/044A&B of both the gifted and leased parcels of land.
Strategy
Agricultural marketing covers the services involved in moving agricultural products from the farm to the consumers. These services involve the planning, organizing, directing and handling of agriculture produce in such a way as to satisfy farmers, intermediaries and consumers. Numerous interconnected activities are involved in doing this, such as planning, growing, and harvesting, grading, packing, packaging, transport, storage, agro and food processing, provision of markets information, distribution, advertising and sale.
At Hongabad Agro Limited, we plan to produce, package, and distribute food products to the Nigerian markets in particular and African markets in general in order to address the localised nutrition needs by offering affordable and enriched products.
We plan to generate hundreds of indirect jobs in the next five years through our network of sales’ officers and marketing executives, local buying agents and service providers. In addition to our local market segments, we plan to be involved significantly in import and export operations.
Our marketing activities begin with the consumers in mind by determining first the various needs of different categories of the consumers with a view to not only meeting their expectations but exceeding it.
Therefore, our motto says, “we will produce and market quality products whether convenient or not but always quality products”.
We will leverage on the available technology to focus on post-harvest processing thereby ensuring waste is reduced to the barest minimum while maximising the value of the products.
We will explore the partnership of different off takers to ensure there is ready market for all the various categories of our produce. This means all the various off takers will form part of our critical stakeholders right from the beginning of the production stage.
Also, as part of our empowerment programmes, we will partner with the cooperative society in our province with a view to empowering the members in the value chain.
We will also establish off taking arrangements with relevant stakeholders and institutions to maximize the effectiveness and efficiency of the agribusiness value chains.
Finally, we shall consider contract farming which is one of the modern day’s approaches to mechanised farming.
Contract farming involves agricultural production being carried out on the basis of an agreement between the buyer and the farm producers. Sometimes it involves the buyer specifying the quality required and the price, with the farmer agreeing to deliver at a future date. More often than not, however, contracts outline conditions for the production of farm products and for their delivery to the buyer’s premises. The farmer undertakes to supply agreed quantities of a crop or livestock product, based on the quality standards and delivery requirements of the purchaser. In return, the buyer, usually a company, agrees to buy the product, often at a price that is established in advance. The company also agrees to support the farmer through, for example, supply of inputs and improved seedlings, assisting with land preparation, provision of production advice and transportation of produce to its premises
Safety
The push towards revitalising the agricultural sector in Nigeria might likely be threatened by the challenges of insecurity in the country. Nigeria has witnessed series of insecurity issues in some parts of the country especially the north -eastern and north -western parts over the last few years. Recently, southeast has been boiling over the agitation for cessation while cases of kidnapping of farmers even on their farmland is a daily occurrence virtually in every part of the country. This tend has made it difficult for farmers to go to their farms without sufficient security supports from the government which has led to food shortage in the recent times.
Another threat is the issue of climate change which may likely contribute to the high incidence of pests and diseases and the lack proper techniques to combat it. The land degradation activities, oil exploration and other mining activities cannot be left out of the threats especially in the South-south region of the country
Religious and ethnic conflicts witnessed in some parts of the country (yet to be fully curtailed) poses serious threats to the development of the agricultural sector in Nigeria.
Finally, Nigeria is endowed with rich natural, human, and capital resources, good climate and vast arable farmland. The challenges in harnessing these great potentials for agricultural development has been hampered by factors such as inconsistencies in government policies, lack of focus, inadequate support system to the farmers among others. However, opportunities abound within the nation to revive and make agriculture a key sector, contributing larger proportion of the nation’s GDP as well as providing employment for a significant proportion of the populace provided necessary parameters are put in place to contain and address insecurity, religious and ethnic conflicts, land degradation, inconsistence policies while enhancing the support system to the stakeholders.
Environment & Sustainability
This is one of the most critical areas of risk associated with agricultural farming in Nigeria today.
Human or environmental risk refers to factors such as the problems with human health or life-threatening situations that can affect the farm business. Examples are the activities of the herdsmen, kidnappings, banditry, boko haram (particularly in northern parts of Nigeria), illness, death, accidents, and so on are some of the human related crises that could threaten the farm business.
Because of the peculiarity of the environment of our operations, we have established a harmonious relationship with the neighbouring communities serving as watch dogs against unwanted intruders into our farmland.
We have also engaged indigens of the community as security personnel in the farmland close to the villages.
We planned to synergise with the nearest police station at Obafemi village in case of tip off for necessary apprehension.
As the farm activities grows, we planned to deploy modern technological equipment such as drones, close-circuit television devises and so on to monitor activities within the perimeter of the farmland.