Agribusiness Investment Decision-Making Among Commercial Farmers in Anambra State

Investment decision-making in agribusiness requires systematic evaluation of capital projects, market risks, and financial returns to ensure that resources are deployed in activities with the highest enterprise value. In Anambra State, in Nigeria's South East geopolitical zone, a commercially active community with substantial diaspora investment interest in agriculture, the quality of investment decision-making frameworks used by established commercial farmers affects both enterprise sustainability and sectoral growth. This study examines agribusiness investment decision-making processes among commercial farmers in Anambra State, focusing on how investment opportunities are identified, evaluated, and financed. A purposive sample of 45 commercial farm operators with annual revenue above N5 million was selected from Awka, Onitsha, and Nnewi areas. Structured interviews supplemented by business document review were used to map decision-making processes. Investment appraisal method use was assessed against a benchmark of modern agricultural finance practice. Descriptive and qualitative analysis were applied. Findings indicate that net present value and internal rate of return calculations were used by only 18 percent of operators, while 62 percent relied on intuitive judgements and simple payback estimation. External advisors were engaged by 27 percent of operators for major investments. Financing decisions disproportionately favoured equity to avoid interest costs, limiting capital access. Diversification into processing and export-ready produce was the most common current investment priority. The study recommends structured investment appraisal training for commercial farmers through the Anambra State agribusiness development programme, with curricula emphasising practical net present value and cash flow analysis methods. Keywords: investment decision-making, agribusiness, Anambra State, commercial farmers, capital appraisal