How to Start a Catfish Farming Business in Nigeria in 2025 (Comprehensive Guide)

Introduction to Catfish Farming in Nigeria

Catfish farming has become one of the most reliable agribusiness opportunities in Nigeria. In 2025, it remains an industry with strong demand, steady profits, and room for new farmers. Catfish is popular across Nigerian homes, restaurants, hotels, and bars. It is a staple food, a source of protein, and an affordable fish compared to many imported options. The demand is not limited to fresh catfish; smoked and processed fish also attract steady buyers both within and outside the country.

The rise of catfish farming is tied to several factors. First, Nigeria’s population continues to grow, and with it comes a rising demand for affordable animal protein. Second, catfish is relatively hardy and grows fast compared to many other fish species. A farmer can raise catfish from fingerlings to market size in just 4–6 months under good management. This short production cycle means multiple harvests in a single year. Third, the industry has support from government policies, local associations, and private investors. This makes it easier for farmers to access training, inputs, and sometimes even credit facilities.

But starting a catfish farming business is not as simple as building a pond and buying feed. Like every serious business, success depends on knowledge, planning, and discipline. Farmers need to understand site selection, pond construction, water quality, feeding strategies, sourcing healthy fingerlings, disease control, and marketing. Skipping these steps often leads to high losses.

This guide provides a detailed, step-by-step explanation of how to start a catfish farming business in Nigeria in 2025. It covers everything from business planning to daily management, cost analysis, and marketing. It is designed for beginners who want to start small and for existing farmers looking to scale up.

1. Why Catfish Farming is Profitable in Nigeria (2025 Trends)

Nigeria is one of the largest producers and consumers of catfish in Africa. Catfish farming plays a major role in bridging the gap between local fish demand and supply. Despite local production, Nigeria still imports fish to meet consumption needs. This creates an open market for farmers who can consistently produce healthy, table-sized catfish.

Rising Demand for Protein

The Nigerian population is projected to exceed 220 million in 2025. With this growth, food demand increases. Catfish, being relatively affordable compared to chicken, beef, and imported frozen fish, is a major source of protein for low- and middle-income households. This consistent demand creates a reliable market.

Market Prices in 2025

Market prices vary by state and season, but retail catfish prices in 2025 commonly range between ₦2,700 and ₦4,500 per kilogram depending on size and location. Restaurants and bars often buy live catfish at premium prices, especially in urban centers such as Lagos, Abuja, Port Harcourt, and Kano. Smoked fish attracts even higher margins because it can be stored longer and transported across the country or exported.

Short Production Cycle

Catfish is one of the fastest-growing fish in aquaculture. Within 4–6 months, fingerlings can reach table size (0.8–1.5kg). Farmers can run two or even three production cycles a year if ponds and feed are well managed. This quick turnover makes catfish farming attractive for those seeking steady cash flow.

Employment and Business Opportunities

The industry creates thousands of direct and indirect jobs. Farmers employ pond workers, feed sellers, transporters, processors, and marketers. Beyond farming, opportunities exist in fish smoking, packaging, feed production, hatchery operations, and consultancy.

Government and Private Support

The Nigerian government, through the Ministry of Marine and Blue Economy and other agencies, continues to encourage fish farming to reduce fish imports. Programs such as BOI (Bank of Industry) loans and cooperative finance schemes are accessible to aquaculture farmers. Private investors are also entering the industry, creating opportunities for partnerships and cluster farming.

Low Entry Barrier

Catfish farming can start on a small scale with minimal investment. A farmer can start with as few as 200 fish in tanks at the backyard or build several earthen ponds for thousands of fish. This flexibility makes the business accessible to both low-income earners and larger investors.

In summary: Catfish farming is profitable in Nigeria in 2025 because demand is rising, prices are attractive, production cycles are short, and support systems are growing. For new farmers, the opportunity is clear, but success requires proper planning and technical know-how.

2. Step-by-Step Guide to Starting a Catfish Farming Business in Nigeria in 2025

Starting a catfish farm requires careful preparation. Many new farmers fail not because catfish is difficult to raise, but because they rush into the business without following the right steps. Below is a practical process you can follow to reduce mistakes and increase your chance of success.

2.1 Write a Business Plan

Every business starts with a plan. A catfish farming business plan is not just a document to show the bank. It is your road map. It outlines your goals, your expected costs, and how you will make money. Without a plan, it is easy to overspend or underestimate your needs.

A good fish farming business plan in Nigeria should answer basic questions:

1. What scale do you want to start with? Some people prefer starting small with 500–1,000 catfish in a single pond. Others aim big with multiple ponds and thousands of fish. Your plan should reflect your budget and capacity.
2. Where will your farm be located? Location matters. Proximity to water, markets, and access roads are critical.
3. What system will you use? Catfish can be raised in earthen ponds, concrete tanks, plastic tanks, or recirculating systems. Each has different costs.
4. How will you feed the fish? Feed is the largest cost, often up to 70% of total expenses. A plan for sourcing affordable, quality feed is essential.
5. What is your market strategy? Who will buy your fish? Restaurants, market women, wholesalers, or direct consumers? Farmers who think of the market only at harvest often struggle to sell.
6. What are your risks and backup plans? For example, how will you handle rising feed prices, sudden disease, or a market glut?

Your business plan should also contain a financial projection. For example, estimate the cost of raising 1,000 fingerlings to table size. Include costs for fingerlings, feed, pond construction or rental, labor, and miscellaneous expenses. Compare this to expected revenue from sales. This calculation helps you see if the business is truly profitable at your chosen scale.

You do not need a complex document. A simple 5–10 page plan with figures is enough. If you want to approach banks like BOI, you can later expand it into a more formal business proposal.

2.2 Choose the Right Location and Pond Type

The next step is to secure land or space. The success of catfish farming is tied to location. The best location is one with:

• Reliable water supply: Catfish need fresh, clean water. A borehole, stream, or well can serve. Rainwater alone is not enough.
• Good drainage: Ponds must be drained and cleaned easily. Avoid flat land where waterlogging can occur.
• Security: Theft is a real problem in aquaculture. Fencing and a secured environment reduce losses.
• Market access: A farm that is too far from buyers faces higher transport costs and lower profits.

After location, you need to decide on the type of pond.

1. Earthen ponds: These are dug in the soil, lined with clay, and filled with water. They are cheaper if land is available and suitable. They allow catfish to grow naturally and reduce feed cost slightly. But they are harder to manage during disease outbreaks and require good soil quality.
2. Concrete ponds: Built with blocks and cement, they are durable and easier to manage. They allow better control of water quality. But construction costs are higher than earthen ponds.
3. Plastic or tarpaulin tanks: These are portable, cheap to set up, and useful for small-scale farmers or backyard farming. They are easy to install but not ideal for very large-scale operations.
4. Recirculating aquaculture systems (RAS): These are modern systems with constant filtration and aeration. They allow fish to be stocked at very high density. But the cost of installation and power supply makes them suitable mainly for advanced or urban farmers.

The choice of pond depends on your budget, land availability, and business scale.

Catfish pond construction cost in Nigeria varies. A small tarpaulin tank may cost ₦70,000–₦150,000. A concrete pond for 1,000 fish may cost ₦300,000–₦600,000 depending on size and materials. An earthen pond dug with equipment may cost even more if the soil is rocky or requires lining.

2.3 Source Quality Fingerlings

One of the biggest mistakes new farmers make is buying poor-quality fingerlings. Fingerlings are the foundation of your farm. If you start with weak or diseased stock, no amount of feed or care will give you good results.

When sourcing fingerlings, follow these rules:

• Buy from a reputable hatchery. Do not buy from roadside sellers or unverified farms. Ask other farmers for recommendations.
• Check for uniformity. Fingerlings should be similar in size. Mixing large and small fingerlings leads to cannibalism.
• Observe activity. Healthy fingerlings swim actively. Weak ones stay at the surface or bottom, gasping for air.
• Transport properly. Fingerlings should be transported in oxygenated bags or tanks, not open buckets. Stress during transport reduces survival.

Catfish fingerlings suppliers in Nigeria are found in almost every state. Lagos, Ogun, Oyo, and Rivers States have well-known hatcheries. Some farms even specialize in producing high-quality juveniles for resale. Starting with juveniles (8–15cm) instead of small fingerlings often improves survival, though they cost more.

Expect to pay ₦30–₦50 per fingerling in 2025 depending on size and supplier. For 1,000 fish, this means around ₦35,000–₦50,000.

2.4 Feeding and Management

Feeding is the single most important factor in catfish growth. The phrase often heard among farmers is: “If you feed well, you harvest well.”

Best catfish feed for fast growth is usually floating or sinking pellets made by established feed companies. Imported brands are expensive but have higher protein content. Local feeds are cheaper and increasingly reliable. Some farmers produce home-mixed feeds once the fish are larger, but beginners should start with commercial feeds.

Key points in feeding:

• Feeding rate: Young catfish eat more frequently. Feed 3–4 times daily for fingerlings, reducing to 2 times daily as they grow.
• Feed size: Match pellet size to the size of fish. Using pellets that are too big or too small wastes feed.
• Feeding spot: Train fish to eat at a particular spot to monitor consumption.
• Observation: Watch fish as they eat. Healthy fish rush for feed. If they are sluggish, check water quality or health.
• FCR (Feed Conversion Ratio): Catfish typically convert 1kg of feed to around 1kg of body weight under good management. This ratio guides feed budgeting.

Feed accounts for about 70% of total cost. For 1,000 fish, expect to spend ₦560,000–₦850,000 in 2025 depending on feed type and growth target.

Some farmers reduce costs by supplementing with locally available feed like maggots, snails, kitchen waste, or self-formulated pellets. But this requires knowledge to avoid nutritional deficiencies. Beginners are advised to stick with standard feeds until they gain experience.

2.5 Water Quality and Health Management

Water is the life of fish farming. A farmer may buy the best fingerlings and feed them with high-quality pellets, but if water quality is poor, survival and growth will suffer. Catfish breathe and feed in water, so any mistake in water management directly affects their health.

Importance of Clean Water

Catfish need water with enough oxygen and low waste levels. Dirty water filled with uneaten feed and fish waste produces ammonia, which poisons fish. Farmers who ignore water quality often face sudden mass mortality. Clean water also helps reduce the spread of bacterial and fungal diseases.

Parameters to Monitor

Several water parameters determine the health of catfish:

• Dissolved oxygen (DO): Fish require oxygen for respiration. If DO drops too low, fish will come to the surface gasping. Aerators or fresh water exchange can solve this problem.
• pH level: Catfish do best in water with pH between 6.5 and 8. Water that is too acidic or too alkaline stresses the fish.
• Ammonia: Formed from fish waste and leftover feed. High levels kill fish. Regular water exchange prevents buildup.
• Temperature: Catfish prefer moderate temperatures (25–30°C). Too hot or too cold water slows growth.

Pond Management Practices

• Regular water exchange: Change 20–30% of pond water every few days, especially in tanks and concrete ponds.
• Aeration: In larger ponds or tanks, use aerators, blowers, or even simple paddle wheels to increase oxygen levels.
• Pond preparation: Before stocking, disinfect ponds with lime and allow water to settle for at least a week.
• Sorting: Catfish grow at different rates. Bigger fish eat smaller ones if not separated. Sorting every few weeks prevents cannibalism and ensures uniform growth.

Disease Management

Common catfish diseases include fungal infections, bacterial diseases, and parasitic infestations. Symptoms include fish swimming abnormally, visible sores, or sudden deaths. To reduce disease risk:

• Stock only healthy fingerlings from trusted hatcheries.
• Quarantine new stock before adding them to existing ponds.
• Maintain good hygiene. Remove dead fish immediately.
• Avoid overstocking, which stresses fish and increases disease risk.
• Consult aquatic vets or experienced farmers when unusual symptoms appear.

Water and health management may seem technical, but consistent observation is often the key. A farmer who watches his fish daily can quickly detect changes and act before problems spread.

2.6 Harvesting and Selling

After months of feeding and management, the real excitement of catfish farming comes at harvest. This is when all the investment turns into cash. But harvesting and selling are not as simple as pulling fish out of the pond. A farmer must plan carefully to maximize profit.

When to Harvest

Catfish are usually harvested at market size, which ranges from 0.8 kg to 1.5 kg depending on customer preference. Some customers, like restaurants, prefer live catfish of about 1 kg. Processors who smoke fish may prefer slightly smaller sizes for easier drying. Large hotels or wholesalers sometimes demand fish above 2 kg. Farmers should study their target market and harvest according to demand.

Harvesting Techniques

In earthen ponds, fish are usually harvested by draining the water and using nets. In concrete tanks and tarpaulin ponds, water is reduced and fish scooped out with nets. Harvesting should be done in the early morning or late evening when the temperature is cooler to reduce stress on fish.

Marketing Channels

A farmer must plan sales before harvest. Waiting until fish are ready before looking for buyers leads to panic sales at low prices. Major marketing channels include:

1. Restaurants and bars: They buy live catfish regularly for pepper soup and barbecue.
2. Market women and wholesalers: They purchase in bulk and resell in local markets.
3. Households: Farmers can sell directly to consumers in their community.
4. Processors: Smoked catfish fetches higher prices and has export potential.
5. Hotels and event centers: They prefer larger, consistent supply.

Storage and Transport

Fresh catfish must be sold quickly because it spoils fast without refrigeration. Farmers transporting fish over long distances should use oxygenated tanks or bags. Smoked catfish is easier to store and transport but requires hygienic processing facilities.

Pricing Strategy

Prices fluctuate depending on supply and demand. Farmers who harvest during festive seasons often enjoy higher prices. Selling in urban centers also brings better returns than rural areas. A good practice is to diversify sales channels. For example, sell some live fish directly to restaurants and process the rest into smoked fish for later sales.

Small scale catfish farming investment pays off best when marketing is planned ahead. Even a farmer with just 500 fish can make steady income if there are guaranteed buyers nearby.

3. Cost and Profit Analysis of Catfish Farming in Nigeria (2025 Example)

Understanding the economics of catfish farming is crucial before starting. Many people hear stories of profit but fail to analyze costs properly. Below is a simple breakdown based on 1,000 catfish stocked in 2025.

Major Costs

1. Fingerlings/juveniles: ₦35,000–₦50,000 for 1,000 fish.
2. Feed: ₦560,000–₦850,000 depending on brand and FCR.
3. Pond construction or rental: ₦150,000–₦600,000 depending on type and size.
4. Labour: ₦50,000–₦100,000 per cycle for workers.
5. Water and electricity: ₦40,000–₦80,000 depending on source and location.
6. Medications and disinfectants: ₦20,000–₦40,000.
7. Miscellaneous: ₦30,000–₦50,000 for nets, buckets, and repairs.

Total estimated cost: ₦900,000–₦1,600,000.

Revenue Projection

• Harvest: 1,000 fish × average weight 1.2 kg = 1,200 kg.
• Market price: ₦2,800–₦3,500/kg depending on location.
• Total revenue: ₦3,360,000–₦4,200,000.

Profit Estimate

• Net profit = Revenue – Total cost.
• Possible profit per cycle: ₦2,000,000–₦2,600,000.

Factors Affecting Profit

• Survival rate: If mortality is high, revenue drops. Aim for 90% survival or better.
• Feed conversion: Poor feed or wasteful feeding reduces growth and profit.
• Market timing: Harvest during high demand seasons like December to enjoy premium prices.
• Scale of operation: Bigger farms enjoy economies of scale, lowering cost per fish.

Small-Scale Example

Even a backyard farmer with 200 fish can make profit. Stocking 200 juveniles at ₦40 each costs ₦8,000. Feed may cost around ₦120,000. With other minor costs, total may reach ₦150,000. If the fish grow to 1 kg each and sell for ₦3,000/kg, revenue will be ₦600,000. Profit is about ₦450,000.

This shows why many Nigerians see catfish farming as a solid agribusiness. With discipline and planning, it can produce consistent income.

4. Challenges of Catfish Farming in Nigeria (and Solutions)

Catfish farming is profitable, but it is not free from problems. Many new farmers quit after their first cycle because they underestimate the risks. Knowing the challenges and how to solve them increases your chances of success.

4.1 High Feed Cost

Feed is the largest expense in catfish farming, sometimes accounting for 70% of production cost. In 2025, feed prices continue to rise because ingredients like soybean meal, maize, and fishmeal are expensive. Imported feeds are even higher due to foreign exchange rates.

Solution: Farmers can manage feed costs by buying in bulk, joining cooperatives, or mixing local feed when the fish are larger. Using locally available protein sources like maggots, earthworms, and poultry waste can also help. However, beginners should avoid experimenting without guidance. Poor-quality feed causes slow growth and higher mortality.

4.2 Disease Outbreaks

Catfish are hardy, but they are not immune to disease. Stress from overcrowding, poor water quality, or handling can lead to infections. Common issues include fungal infections, bacterial diseases, and parasitic infestations.

Solution: Prevention is better than cure. Farmers should stock healthy fingerlings, maintain clean ponds, and avoid overstocking. Regular water changes reduce waste buildup. Dead fish must be removed quickly to prevent spread. In case of outbreaks, consult a vet or experienced farmer before applying treatments.

4.3 Market Price Fluctuations

Fish prices in Nigeria are not fixed. During festive seasons like Christmas or Ramadan, prices rise sharply. At other times, oversupply can cause prices to drop. Farmers who harvest at the wrong time may sell at a loss.

Solution: Plan your production cycle to match peak demand. Diversify sales channels by selling to restaurants, markets, and processors. Some farmers reduce risks by processing fish into smoked catfish, which can be stored and sold later when prices improve.

4.4 Theft and Security

Fish theft is a hidden but serious problem in Nigeria. Unprotected farms near villages or highways are easy targets. Even farm workers may secretly steal fish if not supervised.

Solution: Fence the farm, employ trustworthy workers, and monitor ponds regularly. In rural areas, some farmers keep dogs or install solar lights. Having family members involved in daily operations also reduces theft.

4.5 Access to Finance

Many small farmers struggle with raising startup capital. Banks often demand collateral, and commercial loans come with high interest rates. Without adequate funding, it is difficult to scale up or even sustain operations.

Solution: Farmers can join cooperatives to access group loans. The Bank of Industry (BOI) and some state governments offer agricultural financing schemes. Development programs like FISH4ACP and aquaculture associations also provide input credit. Keeping proper farm records increases the chance of securing loans.

4.6 Lack of Technical Knowledge

Some people start farming without training, relying only on internet videos or advice from neighbors. This often leads to mistakes like overstocking, poor feeding, or bad pond design.

Solution: Before investing heavily, attend a practical training or internship at a successful farm. Read reliable materials, join associations like the Catfish Farmers Association of Nigeria (CAFAN), and seek mentorship. Practical knowledge saves money and prevents early failure.

Summary: Challenges in catfish farming are real, but none are impossible to solve. With preparation, discipline, and proper guidance, the risks can be reduced, and farming can remain profitable.

5. Financing and Support for Catfish Farmers in Nigeria (2025)

Access to finance and support services has improved in recent years. Farmers who know where to look can benefit from loans, grants, and technical assistance.

5.1 Government Support

The Nigerian government has been encouraging aquaculture to reduce fish imports. Through the Ministry of Agriculture and Rural Development, as well as the Ministry of Marine and Blue Economy, different programs exist for fish farmers.

• Bank of Industry (BOI): Offers soft loans to agribusinesses, including aquaculture. Applicants need a business plan and some form of security.
• Anchor Borrowers’ Programme (ABP): Implemented by the Central Bank of Nigeria to provide credit support to smallholder farmers. Some states have extended it to fish farmers.
• State-level initiatives: States like Lagos, Ogun, and Rivers occasionally provide fingerlings, feed, or grants to farmers’ cooperatives.

5.2 Development Programs and NGOs

International organizations like FAO and regional programs such as FISH4ACP support aquaculture development in Nigeria. They provide technical training, capacity building, and sometimes access to finance through clusters.

5.3 Associations and Cooperatives

Joining farmer groups is one of the easiest ways to access finance. The Catfish Farmers Association of Nigeria (CAFAN) is the largest platform for catfish farmers. They negotiate for bulk feed discounts, link members with buyers, and lobby government for support. Local cooperatives also give members access to small loans and group savings.

5.4 Digital and Private Platforms

Some agritech startups now provide fish farming input finance and connect farmers directly with markets. Farmers can access credit for fingerlings and feed, repay after harvest, and also enjoy guaranteed market linkages. This trend is growing in 2025, especially in urban states.

5.5 Personal Savings and Family Support

For many beginners, personal savings and family contributions remain the most common source of startup capital. While small, this funding is flexible and interest-free. Farmers who start small with savings and grow profits cycle by cycle often avoid the stress of loans.

Tip: Regardless of where finance comes from, farmers should keep records of every cycle. Documentation of costs, sales, and profits builds credibility with banks, investors, and support programs.

6. Frequently Asked Questions (FAQs)

Q1: How much does it cost to start a catfish farming business in Nigeria in 2025?

Starting small with 200–500 fish in tanks may cost ₦150,000–₦600,000. A small commercial farm with 1,000 fish may need ₦900,000–₦1.6 million. Large-scale farms with multiple ponds may require ₦3 million or more.

Q2: How many months does it take for catfish to mature?

Catfish usually reach market size within 4–6 months under good feeding and water management. Some farmers extend rearing to 8 months for larger sizes if the market demands.

Q3: Which feed is best for catfish farming in Nigeria?

Commercial floating pellets from reputable companies remain the best for fast growth. Farmers can later supplement with home-mixed feeds when fish are larger, but beginners should rely on standard feeds.

Q4: Is catfish farming profitable in Nigeria?

Yes, catfish farming is profitable if managed well. For example, 1,000 fish raised to 1.2 kg each can generate revenue of ₦3.3–₦4.2 million, with profit margins between 40% and 60% depending on costs and survival rates.

Q5: Where can I buy quality catfish fingerlings in Nigeria?

Trusted hatcheries are found in Lagos, Ogun, Oyo, Rivers, and Abuja. Farmers should buy from reputable suppliers or through CAFAN referrals. Always check that fingerlings are healthy, active, and uniform in size.

7. Conclusion on Catfish Farming in Nigeria

Catfish farming in Nigeria in 2025 remains one of the most promising agribusiness opportunities. The demand for catfish continues to rise, driven by population growth, affordability, and cultural acceptance. With short production cycles and multiple sales options, farmers can generate steady income.

But success does not come automatically. Farmers must plan carefully, manage feed and water effectively, source healthy fingerlings, and secure reliable markets. Challenges like high feed cost, disease, and theft can be overcome with knowledge, discipline, and good partnerships.

For beginners, the best approach is to start small, learn through experience, and expand gradually. Joining farmer associations, attending training, and keeping proper records will provide a strong foundation for growth. With the right strategy, catfish farming can become a sustainable and profitable venture in Nigeria for years to come.