Incentives for agriculture investors as government re-focuses on sector
Mon, 22 Oct 2007 00:00
Numerous incentives are given to stimulate investment in agricultural activities.
Benefits:
Companies in the agro-allied business do not have their capital allowance restricted. It is granted in full i.e. 100%.
The payments of minimum tax by companies that make small or no profits at all do not apply to agro-allied businesses.
Agro-allied plants and equipment enjoy enhanced capital allowances of up to 50%.
Processing of agricultural produce is a pioneer industry, consequently there is 100% tax-free period for 5 years.
All agricultural and agro-industrial machines and equipment enjoy 1% duty.
The Agricultural Credit Guarantee Scheme Fund (ACGSF), administered by the Central Bank of Nigeria, guarantees up to 75% for all loans granted by commercial banks for agricultural production and processing.
The Interest Drawback Program Fund provides a 60% repayment of interest paid by those
who borrow from banks under the ACGS, for the purpose of cassava production and processing. To qualify for these repayments, borrowers need to repay their loans on schedule.
