- Nigeria’s 2023 budget, takes a deeper dive into intensifying the Agric sector slated for 2023 full implementation.
Nigeria offers 5-year tax break as an incentive to improve the country’s agricultural produce and encourage high-level private sector participation in Agriculture, production and processing in the country.
In addition to the waiver, the government is working on being able to grant 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.
Also, the 2023 budgetary allocation for agriculture will see a record increase of allocation from 7% to 10% as revealed by the Minister of Agriculture and Rural Development, Dr. Mohammad Abubakar, 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”.
Nigeria Offers 5-Year Tax Break: More Perspective
The Ministry of Agriculture boss also submitted that agricultural sector is beginning to experience a reinvigoration thanks to the great policies made by the Federal Government to allow the private sector to participate and help to grow the nation’s Gross Domestic Product.
He mentioned that the agricultural growth in Nigeria has increased from 3.48% in 2015 to 6.48% as of 2020, noting that the government is currently working to improve the country’s agricultural produce and turn agriculture itself into a big business.
Abubakar beyond Nigeria Offers 5-year tax break, also mentioned that under the proposed National Livestock Transformation Programme, areas such as beef and dairy production and processing, veterinary drugs and vaccine production, animal feed production, and several others would have to be addressed to motivate the private sector.
According to the Chief Executive Officer of LAPO, Dr. Godwin Ehigiamusoe, during his welcome address at the 29th edition of the LAPO Annual Development Forum, the main impediment to the growth of agriculture and food security in Nigeria is inadequate financing.
The banking expert also mentioned that the poor use of technology also rank high as impediments plaguing the sector in reaching its full potential.
He continued that over the years, LAPO had supported the agricultural sector economy by providing flexible financial services to rural farmers and agribusinesses through the LAPO Microfinance Bank and the LAPO Rural Development Initiative.
While delivering his keynote lecture, Prof. Ernest Aiyedun of the Faculty of Agriculture, University of Abuja, said that the government needs to take financing for agriculture seriously so it can bridge the demand and supply gap in food and fiber in Nigeria.
He, therefore, stated that it is necessary that the effective public financing models in place should be strengthened and those not working well should be revised.
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