A private firm, Kopitar Ltd is starting an initiative that encourages Nigerians to buy land for investment, either to sell or develop later while ensuring that the piece of land is not left idle. Named the FarmCity Estate, the project aims to encourage subscribers to buy land and where they cannot farm on it themselves while the land is kept for future use or left to appreciate over a period of time, Kopitar Ltd will bring in farmers who will cultivate the land on behalf of the land owner. The advantage there is that the land, being engaged, is not vulnerable to land grabbing tactics, then the land owner earns a passive income from it.
Therefore, the model combines land banking with agricultural productivity. Anderson Idoko, CEO of Kopitar Ltd, explains it further, “We connect landowners to vetted farmers who cultivate the land on their behalf. The land generates revenue through farming while naturally appreciating in value over time.”
That is a win-win situation, as the model offers a double benefit of land appreciation and annual farm-generated income. Idoko said, “This includes passive Income for Landowners as Subscribers earn yearly income from farm produce without lifting a finger, creating a new category of agro-investors who benefit from passive farming profits.”
FarmCity operates in Karshi and Gwagwalada, both rapidly developing areas in the Federal Capital Territory. Idoko added, “Beyond profits, FarmCity empowers local farmers with access to land and farming resources, creating jobs and promoting food security.” The initiative looks good to appeal to people who want to secure land for future development but are concerned about the security of the land while they wait for development. It may also excite them that though the land will be kept to appreciate in value, even if it would be sold later, and the waiting waiting period gives the owners the opportunity to properly plan for what they want to build on the land, they will make money from the same land in the interim.