By Toye Olori
LAGOS, Dec 10 2002 (IPS)

The government of President Olusegun Obasanjo has promised tax relief and a 2.5-percent tariff reduction to local and foreign firms willing to engage in large-scale farming of maize, wheat and rice in Nigeria.

‘’The broad objective is to provide self-sufficiency in food production and food security,” says Julius Bala of the Nigeria Investment Promotion Commission (NIPC).

He says the government is determined to increase commercial farming operations and improve storage and processing of agricultural produce and stem post-harvest losses.

Nigeria produces 500 million tonnes of maize annually, about 15 percent of Africa’s 35 million tonnes. Statistics show that developing countries cultivate about 83 million hectares and 215 million tonnes of global maize production. A large proportion of the crop cultivated by peasant farmers gets spoilt due to poor storage.

Maize, or corn, is consumed as breakfast cereal in the south, and staple in the north, of Nigeria.

Since early this year, the government has embarked on a policy to return Nigeria – which gets 90 percent of its export proceeds from oil revenue – to the path of agriculture to save it from looming food shortages. To show its seriousness, the government has approved a concession interest rate of below eight percent to cotton growers to boost local production and export.

Nigeria, with a population of 120 million, also has embarked on measures to boost rice production. Rice import has cost Nigeria more than 600 million U.S. dollars since the beginning of the year, according to official statistics.

The measures to boost rice production include the setting up of a ministerial committee made up of the ministers of commerce, industry and finance, as well as the deputy governors of rice-producing states of Adamawa, Benue, Kebbi, Niger, Akwa Ibom, Bayelsa, Ebonyi, Enugu and Ogun.

The committee will be assisting farmers through timely release of improved seeds, ensuring adequate supply of improved varieties of rice seedlings to farmers and bringing together all stakeholders to work for a common objective.

The government is also interested in ensuring the intake of protein through increased dairy and fish production. New companies wishing to undertake integrated dairy, deep-sea trawling and processing as well as producing fishing nets from local raw materials would also be entitled to tax relief.

Nigeria spends 27 billion Naira (about 270 million U.S. dollars) annually to import fish to bridge the local demand. Aqua-culture development has stagnated at between 17,000 and 25,000 tonnes per annum.

Adamu Bello, minister of agriculture and natural resources, has urged Nigeria to develop expertise and improved technology to reduce the huge food import bill.

The government also has promised to grant manufacturing companies that produce inputs, such as seedling, machinery and fertiliser a period of five-to-seven-year tax relief.

They will also enjoy benefits of locating their firms in the country’s Free Trade Zone and Export Processing Zone. As well as, they will enjoy re-investment allowance granted to encourage expansion of production capacity, modernisation of facilities and diversification into related products and liberalisation of land acquisition for large-scale farming.

The Nigeria Investment Promotion Commission (NIPC), which held a seminar in Lagos last week to attract foreign investors, especially the French, assured that government would protect investors against risks. ‘’Government will sign bilateral investment promotion and protection agreement which provides legal framework for the protection of foreign investment in Nigeria,” it says.

‘’NIPC, a government agency, will also offer special incentives, investor servicing, preparation of agricultural sector studies and profiles for French companies willing to come to Nigeria,” says Bala.

The government also has promised unconditional transfer of profits; research and development grant of up to 120 percent of expenses; in-plant training of two percent for five years; investment on infrastructure 20 percent of cost.

Excerpt:

By Toye Olori
LAGOS, Dec 10 2002 (IPS)

The government of President Olusegun Obasanjo has promised tax relief and a 2.5-percent tariff reduction to local and foreign firms willing to engage in large-scale farming of maize, wheat and rice in Nigeria.

‘’The broad objective is to provide self-sufficiency in food production and food security,” says Julius Bala of the Nigeria Investment Promotion Commission (NIPC).

He says the government is determined to increase commercial farming operations and improve storage and processing of agricultural produce and stem post-harvest losses.

Nigeria produces 500 million tonnes of maize annually, about 15 percent of Africa’s 35 million tonnes. Statistics show that developing countries cultivate about 83 million hectares and 215 million tonnes of global maize production. A large proportion of the crop cultivated by peasant farmers gets spoilt due to poor storage.

Maize, or corn, is consumed as breakfast cereal in the south, and staple in the north, of Nigeria.

Since early this year, the government has embarked on a policy to return Nigeria — which gets 90 percent of its export proceeds from oil revenue — to the path of agriculture to save it from looming food shortages. To show its seriousness, the government has approved a concession interest rate of below eight percent to cotton growers to boost local production and export.

Nigeria, with a population of 120 million, also has embarked on measures to boost rice production. Rice import has cost Nigeria more than 600 million U.S. dollars since the beginning of the year, according to official statistics.

The measures to boost rice production include the setting up of a ministerial committee made up of the ministers of commerce, industry and finance, as well as the deputy governors of rice-producing states of Adamawa, Benue, Kebbi, Niger, Akwa Ibom, Bayelsa, Ebonyi, Enugu and Ogun.

The committee will be assisting farmers through timely release of improved seeds, ensuring adequate supply of improved varieties of rice seedlings to farmers and bringing together all stakeholders to work for a common objective.

The government is also interested in ensuring the intake of protein through increased dairy and fish production. New companies wishing to undertake integrated dairy, deep-sea trawling and processing as well as producing fishing nets from local raw materials would also be entitled to tax relief.

Nigeria spends 27 billion Naira (about 270 million U.S. dollars) annually to import fish to bridge the local demand. Aqua-culture development has stagnated at between 17,000 and 25,000 tonnes per annum.

Adamu Bello, minister of agriculture and natural resources, has urged Nigeria to develop expertise and improved technology to reduce the huge food import bill.

The government also has promised to grant manufacturing companies that produce inputs, such as seedling, machinery and fertiliser a period of five-to-seven-year tax relief.

They will also enjoy benefits of locating their firms in the country’s Free Trade Zone and Export Processing Zone. As well as, they will enjoy re-investment allowance granted to encourage expansion of production capacity, modernisation of facilities and diversification into related products and liberalisation of land acquisition for large-scale farming.

The Nigeria Investment Promotion Commission (NIPC), which held a seminar in Lagos last week to attract foreign investors, especially the French, assured that government would protect investors against risks. ‘’Government will sign bilateral investment promotion and protection agreement which provides legal framework for the protection of foreign investment in Nigeria,” it says.

‘’NIPC, a government agency, will also offer special incentives, investor servicing, preparation of agricultural sector studies and profiles for French companies willing to come to Nigeria,” says Bala.

The government also has promised unconditional transfer of profits; research and development grant of up to 120 percent of expenses; in-plant training of two percent for five years; investment on infrastructure 20 percent of cost.

Excerpt: