Nigeria
Sector
Agriculture & Agri-processing
The Nigerian government has made a lot of effort to diversify the economy with a specific focus on agriculture. Financial incentives, subsidies for farming equipment and fertiliser, and various research initiatives have been introduced to boost agricultural production. A number of companies have already successfully invested especially in agri-processing industries. But with over 150-million mouths to feed and the lucrative export opportunities, plenty of room exists for fresh investment. Although Nigeria has processing plants for a variety of raw materials, the shortfall in processing capacity is one of the key structural deficiencies in the agricultural economy. Consequently, any investment in this sector attracts pioneer status: tax holidays, tariff concessions, financing and export support.
Investment opportunities
The agriculture policy is focused on sufficient food production as the country moves to
reduce food imports that are putting a strain on foreign-exchange reserves. Government initiatives to boost food production also target the use of surplus food as raw materials for exporting industries.
Priority areas include:-
• All aspects of direct agricultural production, but in particular, rehabilitation of groundnut, cotton, cocoa and oil palm production, fish production and forestry
• Investment in processing of agricultural produce and storage facilities
• Investment in processing of agricultural input supply and distribution
• Agricultural mechanization for instance the adoption and use of farm equipment such as bulldozers and tractors, including the provision of land clearing and land preparation services
• Agricultural support activities including research and funding of research activities
• Water resources development,
especially for irrigation and flood control infrastructures along river basins
• Development of earth dams and construction of wash bores and tube wells
• Development and fabrication of appropriate small-scale and mechanised technologies for both on-farm processing and secondary processing of agricultural produce for consumption or storage.
For further information on this opportunity contact TradeInvestNigeria at infonigeria@gan.co.za
