Federal Government's Agricultural Incentives in Nigeria: Simple List for Farmers' Information.

The federal government of Nigeria has embarked on various incentives help influence and increase agricultural output. This also encourage Agro/food farmers in Nigeria in order to maximise food production in the country. Here are few Agricultural Incentives by the government of Nigeria:

1. The federal government under the guaranteed loan scheme guarantees all agricultural loans given by commercial Banks to farmers to the tune of 75% of their irrecoverable amount.

2. Government allows up to five year tax holiday for investment in combined agricultural production and processing.

3. Abolition of import duties on tractors and the other machinery and equipment used for agricultural production.

4. Government subsidies cost of fertilizers up to 75%.

5. Transfer of integrated agricultural production and processing from scheme 11 to 111 of the Nigeria Enterprises Promotion decree.

6. Treatment of agricultural production, processing and marketing of agricultural produce as favoured sectors under the credit guideline.

7. All capital expenditure and equipment incurred in agricultural production by indivduals or companies apart from attracting existing capital allowance, enjoy an additional Investment allowance of 10%.

8. Indifinite carry-forward of losses suffered by a company engaged in agricultural production until such losses can be written off against future profits.

9. Exemption from taxation the interest payable on loans granted to aid Investment in agriculture.

10. Granting of capital allowance for tax purposes to those who lease out agricultural equipment.

11. Price and tax incentives for producers - prices of agricultural products are fixed with no trading surplus in view.

12. Infrastructure programme - This involves the construction of irrigation, soil conversion, land use survey, research, manpower training and marketing facilities.