Why Many Nigerians Lose Money in Fish Farming Investments

Fish farming in Nigeria is popular. Many people invest in it hoping for quick profits. It looks simple—dig a pond, buy fingerlings, feed them, sell fish. But, in reality, many Nigerians lose money in fish farming investments. Why?

In this guide, you will learn:

• What fish farming investment means

• Common reasons people lose money

• Real-life examples and comparisons

• How to avoid losses in fish farming

• Expert advice for beginners and investors

• Clear answers to frequently asked questions

Whether you are a student, a working-class person, or a returnee from abroad, this article is written for Nigerians, Kenyans, and South Africans who are interested in profitable fish farming or agriculture investment.

Let’s dive in

What Is Fish Farming Investment?

Fish farming (also called aquaculture) means raising fish in controlled environments like ponds, tanks, or cages, instead of catching them from rivers or oceans.

Fish farming investment is when:

• You invest your money into a fish farm project (either your own or someone else’s)

• You expect returns from the sales of grown fish

• Sometimes you partner with others or use crowdfunding platforms

In Nigeria, fish farming mostly involves catfish and tilapia, because they grow fast and sell well.

Why People Invest in Fish Farming in Nigeria

• Quick profit potential: Fish like catfish can grow big in 5–6 months

• High demand: Nigerians eat a lot of fish; there’s always a market

• Low entry barrier: Many start with ₦500,000 to ₦1 million

• Passive income idea: Some people want others to manage the farm

• Trend on social media: Many influencers and “agro-preneurs” promote it

But while some succeed, many lose money—sometimes all of it. Why?

Top Reasons Why Many Nigerians Lose Money in Fish Farming

Here are the main reasons most fish farming investments go wrong.

1. Lack of Proper Knowledge and Training

Fish farming is not just putting fish in water. It needs:

• Water quality management

• Feeding schedules

• Disease control

• Stocking density knowledge

• Harvesting techniques

Many people rush into it without learning. They rely on hearsay or copy what others are doing—without understanding why it works or doesn’t.

Real-Life Example

Chinedu, a banker in Lagos, invested ₦1.2 million in a small catfish farm. He didn’t test the water or check oxygen levels. After 2 months, 70% of his fingerlings died. He gave up.

2. Wrong Site Selection and Poor Water Quality

Water is life for fish. Bad water kills them fast.

Problems include:

• Stagnant or polluted water

• Water with low oxygen

• Contaminated borehole water

• No constant water source

Pond location matters too. If you build near sewage, refuse dump, or factory waste, you are asking for disaster.

Solution

• Test water for pH, ammonia, oxygen levels

• Choose flowing water or borehole with good quality

• Avoid swampy or flood-prone areas

3. Buying Low-Quality or Wrong Fingerlings

Some sellers mix poor quality fingerlings with healthy ones. These grow slowly or die early. If you don’t know how to check, you’ll waste money.

There are three stages:

• Fingerlings (4–6 weeks)

• Juveniles (6–8 weeks)

• Post-juveniles / growers

Many new farmers buy fingerlings thinking they are cheaper—but they’re more fragile.

Tips to Avoid Loss

• Buy from trusted hatcheries

• Check fish movement: healthy fingerlings swim fast and evenly

• Buy juveniles instead of fingerlings if you’re a beginner

4. Overcrowding the Pond

Stocking too many fish in a small space causes:

• Oxygen shortage

• Slow growth

• Disease outbreak

• Deaths

Many people want to “maximize” space and think more fish means more money. But this backfires.

Recommended Stocking Density

• For an earthen pond: 8–10 fish per square meter

• For a concrete tank: 5–7 fish per square meter

Always ask a professional to calculate stocking size based on your pond and water flow.

5. Poor Feeding Practices

Feeding is the biggest cost in fish farming—up to 60–70% of your total expenses.

Mistakes include:

• Overfeeding (waste money and pollutes water)

• Underfeeding (slow growth)

• Using bad or expired feed

• Feeding once a day instead of 2–3 times

How to Fix

• Use floating pellets, not sinking ones

• Feed early morning and evening

• Observe how fish respond to food

• Stop feeding when fish lose interest

6. No Record Keeping or Budget Control

You must track:

• How much feed you’ve used

• How many fish survived

• Total cost vs expected returns

Most small-scale fish farmers don’t keep records. At the end of the cycle, they are shocked by low or negative profits.

How to Track

Use a simple notebook or app to record:

Add everything and compare with income from selling fish.

 7. Poor Marketing Strategy

Some farmers grow fish and assume buyers will “just come.” That’s a myth.

Issues include:

• No market plan before harvest

• Middlemen exploit farmers with low prices

• No access to bulk buyers or restaurants

• Selling during price drop season

Better Options

• Pre-sell to buyers before harvest

• Connect with hotels, frozen food stores, BBQ joints

• Join fish farmer co-ops for bulk sales

• Use social media to find customers

8. Falling for Fake Investment Schemes

Many Nigerians now “invest” in fish farms run by strangers or online platforms that promise high returns like:

• 30% in 3 months

• Double your money in 6 months

Most of these are Ponzi schemes or poorly managed farms.

Red Flags

• No farm location

• No report or transparency

• No insurance or risk plan

• Returns sound “too good to be true”

Do your due diligence before investing.

9. Disease and Mortality Due to Lack of Biosecurity

Fish get sick too. If one dies, the rest may follow.

Causes:

• Dirty ponds

• Unfiltered water

• No quarantine of new fish

• Handling stress

• Use of untreated feed

Prevention

• Disinfect tanks regularly

• Use probiotics or anti-bacterial feed

• Quarantine new stock for 2–3 days

• Remove sick fish immediately

10. Poor Management and Lack of Supervision

Many investors are busy professionals. They hire farm managers but don’t supervise or visit.

Common issues:

• Workers steal fish or feed

• Wrong feeding to save effort

• Selling fish without recording

• Ignoring signs of disease

Best Practices

• Visit at least once a week

• Use CCTV or remote monitoring

• Have someone cross-check reports

• Reward good staff performance

Pros and Cons of Fish Farming Investment in Nigeria