Cost of OPESIDI Investment and The Expected Returns on Investment

The total cost of investment on this scheme is N500, 000 (Five Hundred Thousand Naira Only) to be spread over a maximum period of 7 years (84 months), which brings the monthly investment repayment schedule to the paltry sum of N6,000 (six thousand naira only), for the investors (Indirect Farmers).

Expected Returns on OPESII Investment

This investment scheme has 5 years (five years) gestation period, which is the period for the oil palm to commence fruiting on full scale. At the end of the gestation period, economic activities have expectedly commenced fully with regards to harvesting of Fresh Fruit Bunches, Milling of Fresh Fruits, Processing of Crude Palm Oil and production of Palm Kernel Oil. Etc.

The Indirect Farmers start receiving their Dividends of the total sum of N254, 000 (Two hundred and fifty thousand naira) annually through period of 15 (fifteen) years life of the investment. At    the end of the 15th year, an investor must have made a cumulative ROI of the sum of N3, 662,000 (Three million six hundred and sixty two thousand naira only) over 15 years.

OPESIDI investment model describes three different dispensations as it concerns the growth stages and gestation period of oil palm as tree crop. It takes oil palm a period not less than five years to start bearing fruits near maximum, before it commences fruit bearing the farmer continue bearing the cost of maintaining  the plantation/farm to making sure the oil palm is given the required best management practices to enable the palm do well.

These dispensations describe the OPESIDI’s Investment in colours:

  1. The red dispensation: this is the first stage of the investment’s life circle; in this dispensation the indirect farmers will be making monthly contributions of N6, 000 as cost of the investment on the installments basis. This dispensation last for 7 years (60 months) starting from the inception of the OPESIDI’s project.
  2. Green Dispensation: this period lasts for two years starting from the 6th -7th year, this dispensation is the period of early fruit bearing of the plantation. This period the investor’s dividends is about N180, 000 (one hundred and eighty thousand naira) annually in the 6th and 7th year respectively.
  3. Gold dispensation: the gold dispensation of OPESIDI investment lasts from 8-15 years; it is the period that farmers receive their full return on investment of not less than the average sum of N254, 000 annually from their OPESIDI’s partnership investment over 15 years, that is the end of OPESIDI investment.

OPESIDI Table of Cost and Financial Benefits to investors; Return on investment starting from the 5th year over 15 year investment life.

Numbers of investment years including the first 5 years gestation period. At these years no return on investment accrues to an indirect farmer, he only pays the investment cost spread over 7 years. (84 months) RETURN ON INVESTMENT

(DIVIDENDS) after the 5th year.

TOTAL OPESIDI INVESTMENT COST: N500,000
 Year 1. N 71,429 NIL
2. N 71,429    RED-DISPENSATION NIL
3. N 71,429    RED-DISPENSATION NIL
4. N 71,429    RED-DISPENSATION NIL
5, N 71,429    RED-DISPENSATION NIL
6. N 71,429    RED-DISPENSATION N 180,000     GREEN-DISPENSATION
7. N 71,429    RED-DISPENSATION N 180,000     GREEN-DISPENSATION
8. NIL N 254,000     GOLD- DISPENSATION
9. NIL N 254,000      GOLD-DISPENSATION
10. NIL N 254,000      GOLD-DISPENSATION
11. NIL N 254,000      GOLD-DISPENSATION
12. NIL N 254,000      GOLD-DISPENSATION
13. NIL N 254,000      GOLD-DISPENSATION
14. NIL N 254,000      GOLD-DISPENSATION
15. NIL N 254,000      GOLD-DISPENSATION
16. NIL N 254,000      GOLD-DISPENSATION
17. NIL N 254,000      GOLD-DISPENSATION
18. NIL N 254,000       GOLD-DISPENSATION
19. NIL N 254,000       GOLD-DISPENSATION TOTAL DIVIDEND VALUE OVER 15 YEARS:
20. NIL N 254,000       GOLD-DISPENSATION N3,662,000

The return on the OPESIDI investment after the fifth year, running over 15 year’s investment life for the Indirect Cluster Farmer is about 732.4 % return on investment.

A= Total investment Cost spread over 7 years (84 months) is N500, 000. About N6, 000 monthly, and N71, 429 annually.

B= Total Return on OPESIDI’s investment over 15 years is N3, 662,000 (Three million six hundred and sixty two thousand naira only)

Agricultural Alternative Retirement Investment Scheme (AARIS)

How much should I save monthly to be able to realize N2, 000,000, with 5 years left in service?

  1. Currently saved = N 80,000
  2. Amount expected at retirement = N 2,000,000
  3. Years left in service =5 years
  4. Annual Return Rates (ARR) =11%

AARIS AMORTIZATION TABLE FOR 5 YEARS TO RETIRE CATEGORY OF SUBSCRIBERS

NO MONTHLY INTEREST PRINCIPAL BALANCE
1 306,491.16 8,000:00 386,491:16 394,491:16
2 306,491.16 49,449:12 692,982:32 740,431:44
3 306,491.16 121,492:26 999,473:48 1,120,965:74
4 306,491.16 233,588:83 1,305,964:64 1,539,553:49
5 306,491.16 387,544:18 1,612,455:80 1,999,999:98

AARIS MONTHLY CONTRIBUTION BY VARIOUS YEARS LEFT IN SERVICE TO EARN N2, 000,000 AT RETIREMENT POINT.

Number of years to retire Expected monthly contribution (ARRIS SAVING) Amount to be earned at retirement point.
5 N25,000 N2,000,000
6 N19,500 N2,000,000
7 N15,700 N2,000,000
8 N12,800 N2,000,000
9 N10,800 N2,000,000
10 N8,840 N2,000,000
11 N7,500 N2,000,000
12 N6,350 N2,000,000
13 N5,400 N2,000,000
14 N4,600 N2,000,000
15 N3,950 N2,000,000
16 N3,400 N2,000,000