10 ways to venture into ginger business in 2025

Ginger is a vital cash crop in Nigeria, which ranks as the third-largest producer and exporter globally, behind India and China. Nigerian ginger is highly sought after on the international market for its distinctive aroma, pungency, high oil content, and lower fiber levels.

Currently, a ton of ginger is sold for N15 million, about 13.3 per cent higher than the price of a ton of cocoa. While ginger may not be as popular as cocoa, it is highly valued, especially due to its scarcity following the ginger blight outbreak that devastated the industry during the 2023 harvest season.

This has further elevated the demand for Nigerian ginger, making it an even more prized commodity and presenting an investment opportunity for entrepreneurs and investors.

The ginger industry offers vast opportunities for profit, even with minimal capital investment. However, success largely depends on the investor’s capacity, network, and knowledge.

Here are 7 ways to enter and thrive in the ginger business:

Farm-gate-buying

One of the easiest and low-capital ways to enter the ginger business is by sourcing fresh ginger directly from local farmers and selling it at nearby markets. You can start by purchasing ginger from high-producing states like Kaduna, Nasarawa, Niger, Gombe, Bauchi, and Benue, then selling it to local buyers within the state or country.

As of February 2025, a 50kg bag of fresh ginger is priced between N250,000 and N300,000, depending on your negotiating skills and the source of supply.

Ginger powder

Drying and grinding ginger presents a simple yet lucrative business opportunity. Ginger powder is widely used as a medicinal spice in cooking, beverages, and even as a health tonic.

Its well-known properties for alleviating stomach discomfort, particularly from chronic indigestion, make it a sought-after product. The increasing demand for ginger powder, due to its numerous health benefits, makes this business venture not only profitable but also in high demand.

Value-added products

Maximising the potential of ginger hinges on adding value to the product. Two primary ways to do this are through spice production and oil extraction. Nigerian ginger, known for its rich aroma and high oil and oleoresin content, is highly valued in both the culinary and medicinal sectors. Experts suggest that 25 metric tonnes of fresh ginger can yield one metric tonne of ginger oil, which offers a profit potential 35 times greater than that of dried split ginger.

Outgrower farming

Large-scale ginger farmers can partner with companies and foreign investors to cultivate the crop on their behalf. This collaboration not only allows farmers to demonstrate their expertise but also opens up significant opportunities for generating substantial profits.

Nursery farming

Ginger seedling production and sales represent an untapped opportunity within the value chain. The recent ginger blight disease outbreak has caused a shortage of seedlings, prompting farmers to withhold sales in anticipation of rising prices as the farming season (March to November) approaches.

For example, Paul Kato, a ginger farmer based in Kaduna, points out that a 10kg basin of ginger seedlings, which was previously sold for N5,000, is now priced at N120,000. This creates a significant profit potential for ginger seedling nursery farmers.

Selling dry-split ginger

The market for dry-split ginger, in both local and international markets is large, growing, and sustainable due to the wide range of uses for ginger.
Most buyers seek a reliable and consistent supply of these products, creating a strong demand. According to market research reports, this offers an opportunity for high returns on investment, with potential profits of 15-20 percent.

Wholesales

Bulk purchasing and sales is a highly profitable venture, though it requires significant capital investment. Companies such as AFEX, GACON, and HERO source their supplies from key players within the value chain. One effective strategy for making substantial profits is to buy large quantities directly from local farmers and then sell them to these companies.

Ginger exports

Ginger exports offer a valuable gateway to the global market. As demand continues to rise while supply often falls short, prices are expected to increase. However, entering the export business requires substantial capital investment and extensive documentation to comply with international standards.

Ginger imports

This is an emerging business opportunity that remains relatively untapped. However, it is only recommended when local supplies are insufficient to meet market demand. While importing is capital-intensive, it can be highly profitable with the right knowledge and network.

Warehousing

Kato highlighted warehousing as a profitable business opportunity. The primary requirement is either renting or owning a warehouse. As farmers harvest their crops, they need secure storage facilities.

Profits are generated by charging farmers based on the quantity of their produce and the length of time they intend to store it. However, it’s essential that the warehouse meets safety and quality standards for ginger storage and is certified by the National Agricultural Quarantine Service (NAQS).

BusinessDay