Region
Cross River
Nigeria

Sector
Agriculture & Agri-processing

Summary:

The Cross River state is seeking investors to expand the agriculture sector. The state is aiming to become a major food producer and exporter.

Contact
TradeInvestNigeria

Email
infonigeria@gan.co.za

The Cross River State government is seeking investors to develop the agriculture sector. The ceding of 71 oil wells, faltering food security and the expenditure on imported food has prompted the state government to strengthen its agriculture policy whose objective is to see the region become a major food producer and exporter.

The state's economy is predominantly agricultural and the private sector is mostly comprised of local subsistence farmers while the public sector is run by the government and features large plantations and demonstration farms. The main crops are cassava, yams, rice, plantain, banana, cocoyam, maize, cocoa, rubber, groundnut and palm produce. The government has introduced various intiatives to boost production in the sub-sectors. The goal is to have farmers adopt modern techniques.

Investment opportunities

Infrastructure: Investment in infrastructure and modern inputs such as fertiliser, seeds, tools and agro-chemicals would greatly improve the quality and quantity of agricultural output. 

Commercial farming: Major investment in large-scale farming is needed in order for Cross River to achieve its target of being a net exporter of food. A predicted steady and relatively high international cocoa price and potential to improve productivity makes expansion of cocoa farming one of the attractive prospects in agriculture. 

Food Processing: Produce is largely exported unprocessed despite the benefits of value addition. There is a shortfall in the processing capacity in Nigeria and consequently, any investment in this sub-sector attracts Pioneer Status: tax holidays, tariff concessions, financing and export support.  Cross River’s export promotion zones, port, and accessibility to Lagos and Abuja provides easy links to large markets, faster clearance of goods, and an opportunity to develop Cross River’s capital city, Calabar, into a central location for food processing.

Investment Climate

Investor services: The World Bank’s Sub-national Doing Business Report for Nigeria, ranks Cross River as one of the top four states for ease of doing business in Nigeria. The state’s One-stop Investment Center (OSIC) provides investment information, services, advice to potential investors and helps match investor requirements with the available opportunities. 

Ease of registering a business: The Nigerian Corporate Affairs Commission (CAC) has simplified the business registration process and decentralised its operations to zonal branches for improved accessibility and efficiency. 

Infrastructure: The state government is working to provide adequate infrastructure to meet growing consumer and business demands. These include:

• $150-million project to expand and upgrade Margaret Ekpo International Airport.
• Calabar Monorail
• $36-million investment on 19.8km rail connecting international airport, Calabar and TINAPA resort.
• Calabar Energy City, which is designed to develop an energy sector cluster with residential, commercial and industrial areas.
• Power Generation – there is an ongoing project to connect all communities to the national grid. Focus is also on renewable energy sources.

In addition, the federal government in a bid to stimulate investment in agricultural activities provides the following incentives;

• 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.

For further information on investment opportunities in Cross River state contact TradeInvestNigeria at infonigeria@gan.co.za