Region
Nigeria
Sokoto
Sector
Agriculture and Agri-processing
Food and Beverages
Manufacturing
Summary:
Sokoto State, situated in north-west Nigeria, has great potential in the cultivation and processing of various crops. The state government is actively promoting commercial farming initiatives by offering numerous incentives to investment in the sector.
The Sokoto State Government is actively promoting investment in the state's agriculture sector.
Agriculture is the single most important economic sector of the state with over 80% of the population dependant on agricultural activities for their livelihood.
Agricultural production in Sokoto State is concentrated in the short rainy season which begins in May/June and extends up to the end of September. The state receives an average of 700 – 800 mm of rainfall which is suitable for the production of a wide range of tropical and sub-tropical crops.
Investment Opportunities
Investment opportunities exist in the cultivation of crops and in various agri-processing industries.
The following crops are suitable for cultivation in Sokoto State:
Millet
Sorghum
Rice
Cowpea
Groundnuts
Sesame seeds
Maize
Onions
Garlic
Tomatoes
Peppers
Leafy vegetables
Sugarcane
Citrus fruits
Viable agri-processing activities:
Tomatoes/fruit canning/processing
Sugar extraction/refining
Fertiliser production
Monosodium glutamate production
Onion/garlic processing
Flour mills
Ethanol/biofuel production
Feed mills
Confectioneries
Incentives
The Nigeria Federal Government and the Sokoto State Government is offering a range of incentives to investment in agriculture and agri-processing. These include:
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.
Contact Details: Investors interested to invest in Sokoto State's agriculture sector should contact Dr Buhari Bello Kware of the Sokoto State Investment Promotion Committee at bbkware@yahoo.com
