The federal government has approved a tax and duty-free break for five years for agricultural production and processing in Nigeria, and tax-free agricultural loans with a moratorium period of over 18 months and a repayment period of not more than seven years and zero-tariff rates on the importation of agrochemicals.
The minister of agriculture and rural development, Dr. Mohammad Abubakar, who made this known during the 29th edition of the LAPO Annual Development Forum with the theme, ‘Financing agriculture and rural development initiatives in Nigeria: Issues and way forward,’ said the approval was to improve high-level private sector participation in the nation’s food production and processing industry.
The minister, while calling Nigerians to invest in agriculture, said the sector was experiencing a reinvigoration with dedicated policies of the federal government aimed at allowing the private sector to get involved and make more contributions to growing the nation’s Gross Domestic Product.
Abubakar reaffirmed the federal government’s commitment to creating investment opportunities for the private sector to participate in industrialising the agricultural sector; saying its annual budgetary allocation to agriculture had been increased.
He said the government was making efforts across the country to ensure sustainable food security and agribusiness at its core.
Earlier, the chief executive officer of LAPO, Dr. Godwin Ehigiamusoe, in his welcome address, stated that agriculture-driven growth and food security in the country was being hindered by inadequate financing and poor use of technology among others, resulting in higher food prices, increasing poverty, hunger and malnutrition.
Ehigiamusoe said LAPO had, over the years, supported the agricultural sector of the economy through the provision of flexible financial services to rural farmers and agribusinesses through the LAPO Microfinance Bank and the LAPO Rural Development Initiative.
Chairman of LAPO Board of Directors, Dr. Osaren Emokpae, said aside increasing funding, it was imperative to fund agricultural research in the country with efforts intensified to reduce the cost of basic agricultural implements and tools to increase accessibility by farmers.
