AN APPRAISAL OF THE REGULATORY FRAMEWORK FOR INVESTMENT IN THE NIGERIAN AGRICULTURAL SECTOR1
The Nigerian agricultural sector is brimming with massive investment opportunities, across the value chain, for both local and foreign investors, with the current favourable policies of the government aimed at making the sector a viable base of the economy. The development framework for the agricultural sector is captured in the Agriculture Promotion Policy ("APP") 2016-2020, which sets out strategies for stakeholders to build a sustainable agribusiness economy with the capacity to attain food security, import substitution, economic diversification and job creation.2 The APP identifies viable investment areas including agricultural production,3 distribution and supply of production inputs,4 provision of enterprise specific infrastructure, agricultural produce storage, processing and marketing of farm produce, agricultural research and development, commodity export and agricultural support services. The latest policy also prioritises private sector participation, in partnership with government, as the vehicle to fast track agricultural growth and development. In recognition of the government's effort to boost investment in agribusiness, this article provides a regulatory guide to agricultural investment in Nigeria.
1. Legal Framework for Investment in the Agricultural Sector in Nigeria
There is no specific legal framework for the regulation of investment in the Nigerian agricultural sector. However, there are non-sector specific regulations and regulators
impacting on agricultural investment. Some of these include:
a. The Companies and Allied Matters Act, 2020
The CAMA establishes the Corporate Affairs Commission, which is the regulatory agency overseeing the registration and regulation of business entities in Nigeria. The newly enacted Companies and Allied Matters Act, 2020 (CAMA 2020) makes provision for dynamic business structures, such as Limited Liability Partnerships ("LLPs") and the Limited Partnerships ("LPs"), which were previously unrecognised. Investors have the option to use a private or public company, an LP, a general partnership, or an LLP as the investment vehicle. To this end, it is advisable to register a corporate entity as the vehicle for an investment of this magnitude because only corporate entities can access certain government incentives in the agricultural sector.
b. Nigerian Investment Promotion Commission (NIPC) Act
The Nigerian Investment Promotion Commission Act establishes the Nigerian Investment Promotion Commission (NIPC) to encourage, promote, and coordinate investments into Nigeria. The Agency provides services necessary for the grant of business entry permits, licenses, authorisations, and incentives to businesses with foreign participation. Businesses with full indigenous participation are not to register with the NIPC.
c. The National Office for Technology Acquisition and Promotion (NOTAP) Act
The NOTAP Act5 establishes the National Office for Technology Acquisition and Promotion. The agency is responsible for monitoring, evaluation, and registering agreements for the transfer and acquisition of foreign technology. The agency also promotes technological research and development in vital sectors of the economy. Technology transfer agreements for the importation of foreign agricultural machinery and equipment fall within the regulatory oversight of NOTAP. Where a contract registrable with NOTAP is not registered, the contract remains valid.6 However, monies due under the contract to be paid a person outside Nigeria cannot be paid through the Central Bank of Nigeria or any CBN licensed bank in Nigeria, unless a copy of the contract certified by NOTAP is tendered by the parties.7 This Act is applicable to the agricultural sector as modern-day agri-business involves the importation and use of foreign technologies, which may be registrable under the Act.
d. Labour Act
The Labour Act prescribes the minimum rights, working conditions and terms of employment for workers across all sectors of the economy. Labour Act only covers employees engaged under a contract of manual labour or clerical work in private and public sector.8 Since agricultural production and processing in Nigeria is virtually unmechanised, workers in this sector are guaranteed safeguards provided under the Act. Although employers are not allowed to make arbitrary deductions from employee's wages,9 statutory deductions to the National Social Insurance Fund (NSITF), National Housing Fund (NHF), Industrial Trust Fund (ITF), and the National Pension Commission (PenCom) are dependent on the size of employee's remunerations.
2. Regulatory Framework and Agencies
2.1 Federal Ministry of Agriculture and Rural Development
The Federal Ministry of Agriculture and Rural Development ("the Ministry" or "FMARD") has the mandate to regulate the agricultural sector in Nigeria, ensure availability of agricultural produce, stimulate large-scale agricultural investment, oversee the production and supply of raw materials to agribusinesses, provide markets for the products of the industrial sector, formulate programmes, policies and actions to improve the agricultural sector, and issue regulatory permits and licenses. The Ministry works alongside various government departments, agencies, and parastatals to ensure agricultural products meet international standards. Investment in Nigeria's agricultural sector is mostly monitored by the Ministry.
2.2 Central Bank of Nigeria (CBN)
The CBN plays a significant role in the fiscal regulation of the agricultural sector. It issues Certificate of Capital Importation (CCI) through Authorised Dealers for capital brought into the country through foreign investment.10 The primary purpose of the CCI is to guarantee access to the official foreign exchange market for repatriations of capital, dividends, interest and returns on investment by foreign investors through authorised channels.
The CBN, as part of government policy to increase food production and security in the country, has intervened in the agriculture sector through schemes like the Anchor Borrowers' Programme and the Commercial Agricultural Credit Scheme. This intervention is targeted at improving local production of four commodities, namely: rice, fish, sugar, and wheat. These interventions have helped improve access to financing and procurement of modern equipment for participants in the sector.
3. Foreign Participation in the Agricultural Sector
A foreigner can invest and participate in the operation of any business enterprise in Nigeria, provided that the investment is registered with the National Investment Promotion Commission ("NIPC"). Registration with the NIPC is a one-off and there is no requirement to renew or update the registration. There are also no additional fees to be paid as a continuing obligation.
Furthermore, the Citizenship and Business Department of the Ministry of Interior ("MOI") oversees the enforcement of the provisions of the Immigration Act 1963 as it relates to the establishment of businesses with foreign participation and the employment of expatriates in Nigeria. Any enterprise with alien participation is required to obtain a Business Permit from the MOI before commencing operation in Nigeria.11 A company intending to hire foreign personnel is required to obtain expatriate quota from the Ministry of Interior, which may be done jointly with an application for a business permit.
4. Acquisition of Land and Perfection of Title
Nigeria is blessed with large tracts of uncultivated, arable land which makes agriculture a viable sector of the economy with high potential for employment generation, food security and poverty reduction.12 The Nigerian constitution and the Land Use Act ("LUA") guarantee citizens the right to acquire and own immovable property or interest in immoveable property. However, foreigners are precluded from land ownership under the Land Use Act.13 Notwithstanding the provisions of the LUA, a foreign-owned entity
incorporated in Nigeria may acquire and hold interest in land in any state in Nigeria.14
To obtain land situated in an urban area,15 the investor will make an application for property allocation to the Governor through the Lands Bureau.16 Land may also be acquired from individuals and land-owning families by the assignment of the unexpired residue of their rights of occupancy. The investor must proceed to register the transfer of interest in land at the Land's registry and obtain the governor's consent upon the payment of applicable fees. This is known as perfection of title. The process of perfection helps to secure title to the land and raises a presumption of ownership in favour of the person whose title is registered. It is instructive to note that failure to obtain governor's consent renders the transaction inchoate.17 Lands in non-urban areas, which are most suitable for agricultural purposes,18 are subject to management and control of the local government. A local government may grant a customary right of occupancy to any person or organisation over non-urban land within its jurisdiction for agricultural, grazing and ancillary purposes.19 Acquisition of land from the local government is similar to what is obtainable from the Governor with the exception of less administrative fees and red tape since the process is mostly governed by customary law.
A customary right of occupancy cannot be granted to an individual over land in excess of 500 hectares for agricultural purposes and not more than 5,000 hectares for grazing purposes, except with the consent of the Governor.20 The Act provides no such limitation for business entities. The transfer of interest in land situated in non-urban areas by way of sale or lease by a holder of a customary right of occupancy is legally proscribed and penalised.21
In recognition of the importance of security of interest and title to land to foreign direct investments, the World Bank recently included "ease of property registration" as one of the parameters used in assessing the ease of doing business in various regions. Despite Nigeria's improved ranking in terms of ease of doing business, the process of perfection of title in Nigeria is challenging and cumbersome due to bureaucratic processes and administrative malpractices. The entire process of registration of title in Nigeria takes between six months to two years. This may serve as a disincentive to potential investors in the agricultural sector. With the significant emphasis on agricultural development in the country, there is still much to be done to achieve a seamless and investor friendly property registration process, to improve Nigeria's global ease of business ranking. Potential investors are advised to seek the professional guidance of a legal practitioner with a proper understanding of the title registration system, to avoid systemic bottlenecks.
5. Tax Compliance
The Companies Income Tax Act,22 Value Added Tax Act,23 Capital Gains Tax Act24 and the recent Finance Act 201925 provide guidelines for the computation and remittance of tax for corporate bodies. The Federal Inland Revenue Service ("FIRS") is the agency saddled with the responsibility of assessment and collection of tax accruing to the Federal Government of Nigeria.26
Following registration with the CAC, business entities are automatically issued tax identification numbers. This has dispensed with the need for companies to apply for the issuance of Tax Identification Numbers from the FIRS after incorporation. To register with the FIRS, an application is made to the Tax Controller in the FIRS office covering the area in which the company is located. The FIRS issues a tax clearance certificate for the period of 6 (six) months upon completion of registration for remittance of income tax and VAT.
6. Agricultural Investment Incentives
As part of its efforts to provide an enabling business environment to aid the improvement of productivity of the agricultural sector, the Federal government has progressively introduced a number of incentives to encourage private sector participation in the agricultural industry and the influx of foreign direct investments ("FDIs"). While some of these incentives are in form of tax holidays, exemptions, and reliefs, others are based on sector-specific government policies, performance of the companies as well as relevant international investment treaties. Some incentives worthy of note are listed below.
6.1 Taxation incentives
Although, no business entity is given a blanket exemption from paying taxes, companies operating within the agricultural sector are exempted from paying specific taxes that are applicable to companies in other sectors. The Companies Income Tax Act27 and other fiscal legislations28 offer a variety of tax incentives to attract potential investors and entrepreneurs.
6.1.1. Exemption from Companies Income Tax
Companies wholly engaged in agricultural business or trade are exempted from the minimum corporate income tax which is currently set at 20 percent for medium enterprises and 30 percent for large companies.29 Small businesses with an annual turnover of less than twenty five million or less are totally exempted from paying corporate income tax under the Finance Act. The Finance Act30 also exempts companies within the first four calendar years of operation from the obligation to pay corporate income tax in Nigeria.
6.1.2. Exemption from Value Added Tax (VAT)
Importation and purchase of machinery/ equipment for agricultural production, processing or other agro-allied projects is exempted from value added tax and import duty tariffs. Agricultural input including insecticides, rodenticides, fungicides, herbicides, anti-sprouting products, plant growth regulator, disinfectants as well as mechanical appliances for dispersing such substances are VAT exempt.31
6.1.3. Tax Relief for Research and Development
Being a developing country, an important objective of using incentives to attract investment is the transfer of technology.32 To reward research and innovation, the CITA guarantees a tax deduction not exceeding ten percent of the company's profit for every taxable year. Companies involved in agricultural R&D for commercialization are allowed up to twenty percent tax credit on their qualifying expenditure for that purpose, provided the research is carried out in Nigeria and is connected with the business from which the income or profit is derived. Innovative findings may be patented and protected in accordance with industrial property rights.33
6.1.4. Investment Tax Relief
Companies located at least 20 kilometres away from essential infrastructure, such as electricity, water, tarred roads and telephone services, are granted tax relief for three years on expenses incurred on the infrastructure.34 However, the extent of the tax relief is determined by the nature of facilities procured.35 This tax deduction is not applicable to companies already granted pioneer status.
6.1.5. Inplant Training Incentive
Agro -based companies with facilities for inplant training qualify for two percent tax concession for a period of five years. Such programs, if properly implemented, are used as fiscal incentives to promote education, industrial training and skill acquisition.
6.1.6. Tax Credit
A company is entitled to a tax credit of 1% for large companies and 2% for SMEs, where the income tax is paid 90 (ninety) days before the due date for filing.36
6.1.7. Capital Allowance
Companies operating within the agricultural sector are entitled to claim full capital allowances on taxable profits within a taxable year and can carry forward unutilized capital allowances indefinitely. Companies in agricultural trade or business carry forward their losses indefinitely.37
6.1.8. Reconstruction Investment Allowance
The CITA allows a ten percent capital allowance on expenditure incurred on the purchase of agricultural plant and equipment, in addition to the initial allowance granted under the Act.38 This incentive is granted once in the lifetime of the qualifying capital expenditure.
6.1.9. Rural Investment allowance
This is a tax incentive granted at varied rates to companies that incur capital expenditure on the provision of facilities and infrastructure in rural areas in the course of doing business, depending on the type of facilities provided.39 This incentive is granted to encourage corporate social responsibility and investment in economically disadvantaged regions.
7. Agricultural and Agro-Allied Sector Incentives
There are certain sector-based incentives specifically designed for the agricultural sector. Profits made from the export of agricultural produce are tax exempt, provided that the proceeds from such export are used exclusively for the purchase of raw materials, machinery or equipment.40 There is also a ten percent tax deductible for agro-based companies that export sixty percent of their produce. Agro-based companies also enjoy a tax holiday for an initial period of five years renewable for a maximum of three years, subject to the company's performance.41
8. Pioneer Status Incentive Scheme
The Pioneer Status Incentive ("PSI") is a fiscal incentive under the Industrial Development (Income Tax Relief) Act ("IDITRA") granted to support eligible corporate entities in their formative years through a tax exemption for an initial period of three years renewable for a maximum two years. Companies engaged in the cultivation, production and processing of agricultural produce as well as other activities along the agricultural value chain are granted pioneer status with attendant tax exemptions.42 Dividends paid by the pioneer company during the period of the grant are exempt from taxation as long it is paid out of income exempted from tax.43 Also, pioneer industries located in economically disadvantaged areas of the federation are entitled to 100 percent tax holiday for 5 years and an additional 5 percent capital depreciation allowance.
9. Local Raw Materials Utilisation
To promote domestic production and local content development, a twenty percent tax concession for five years is granted to agro-allied businesses that attain the seventy percent minimum local raw materials sourcing.
10. Exemption of Taxation on Interest on Loans
Interest payable on loans granted to any company engaged in agricultural trade or business is exempted from taxation, provided the moratorium does not exceed 18 months.44 In the same vein, interest accruing on loans granted to individuals engaged in agricultural trade or business is not subject to taxation.45 This serves to incentivize commercial and microfinance banks to provide affordable financing solutions to agribusinesses.
11. Financial Aid for Agribusinesses
The Agricultural Credit Guarantee Scheme ("ACGS"), a CBN initiative mostly for small scale farmers, guarantees the payment of up to 75 percent of the principal sum and interest for credit granted for agricultural purposes, to enhance credit availability in the agricultural sector.
To complement existing initiatives, the CBN in collaboration with the FMARD recently established the Commercial Agriculture Guarantee Scheme ("CACS") to provide concessionary funding for agricultural investment. The Scheme, which runs till September 2025, is to be funded by a 200 Billion Naira bond raised by the Debt Management Office, to finance eligible commercial agricultural enterprises.46
The Nigerian Incentive-Based Risk Sharing for Agricultural Lending47 was incorporated by the CBN in 2013 to improve cash flow in specific agricultural value chains. Other sources of funds include Bank of Agriculture supervised by the Ministry to provide sustainable agricultural financial services and unlock productivity through easy access to finance.
To encourage international trade and investment by cutting down on costs of international transactions, Nigeria has entered into Double Taxation Agreements ("DTAs") with a number of countries to eliminate double taxation with respect to taxes on income and capital gains tax48 or any taxes of similar character imposed by the laws of the foreign country involved. Countries with which Nigeria has signed subsisting DTAs include Belgium, Canada, China, France, the Netherlands, Pakistan, Philippines, Romania, South Africa, and the United Kingdom.
12. Labour Intensive Mode of Production
To boost employment rates in the Nigerian labour market, companies with high labour to capital ratio or machinery operated with minimal automation are entitled to a tax concession for five years. The rate of the concession is graduated so that companies employing above 1000, 200 or 100 persons will get fifteen, seven and six percent tax rebate, respectively.
13. Assurances guaranteed by the Nigerian Investment Promotion Council
As part of its commitment to provide a commercially enabling environment, the Federal Government, under the auspices of the NIPC, has provided certain investment guarantees captured in the Nigerian Investment Promotion Council Act.49 In addition to all these safeguards, the Nigeria government is willing to enter into investment promotion and protection agreements to provide reciprocal baseline protections for foreign investments.
Nigeria now ranks 131 on the World Bank's 2020 Doing Business Index, having risen by 39 places since the inauguration of the Presidential Enabling Business Environment Council ("the Council") in 2016, to minimize the constraints associated with doing business in Nigeria.50
In spite of this commendable achievement, there are a few shortcomings which may deter potential investors in search of investment destinations. Some of these include challenges associated with land ownership and security of title, complex regulatory framework, corruption and administrative malpractice, mismanagement of funds, poor industrialisation of the agro-industry, scarcity of locally sourced infrastructure for mechanized farming, the rising cost of agricultural inputs and the cost of doing business in Nigeria.
Although, the Nigerian agro-industry boasts of a high demand for agricultural products along with an abundance of human and natural resources, there is a chronic supply deficit in the industry which has led to scarcity of produce, consistent hikes in the price of food items and an increasing dependence on food importation. To reverse this trend and achieve the aims of APP,51 investment in agribusiness should be focused on the expansion of domestic production capacity.52
Despite the expanse of uncultivated land available in the rural areas, agricultural performance is greatly impaired by the inadequacy of rural infrastructure. Basic facilities such as access to good road networks, electricity, and portable water are essential to rural agriculture. To foster full economic participation, there is need to provide infrastructure to create an enabling environment for agricultural undertakings in the rural areas. In terms of commercialisation of agricultural produce, good road network will improve market linkages for rural farmers, boost downstream activities in the agricultural sector and ease the process of getting products to the final consumers. In addition, modern storage and processing facilities will enhance the commercialisation of products and reduce post-harvest losses.
In addition to the general economic factors that impact on agri-businesses, limited access to land is a constraint that cuts across all states in Nigeria.53 Thus, simplifying the process of property acquisition and title ownership will motivate prospective investors and entrepreneurs.54
The government should prioritise the local production of agricultural machinery, agricultural input, and mechanized processing/storage technologies through strategic partnerships with manufacturers of agricultural support technologies. Transfer of technology will significantly lower the rate of importation of agricultural input and boost local content development.
Huge capital requirement for agricultural investments is a major disincentive for local investors.55 In view of this, the CBN is to be commended for its effort to enhance access to finance to enable all stakeholders, FMARD, the private sector, agribusiness investors, states, LGAs fulfil their roles optimally.56 Proper management of allocated funds will improve the efficiency of institutional agencies,57 encourage the formation of new enterprises across the agricultural value chain and encourage healthy competition within the sector.
Although a number of foreign investors have benefited from available incentives or partnered with the government on agricultural initiatives, these incentives are not easily accessible to SMEs unable to meet the requirements for eligibility. To this end, incentives should be made easily obtainable to agricultural and agro-allied businesses, irrespective of the scale of operations, to open up the sector for increased participation. Indigenous agricultural enterprises, especially SMEs, should be given priority in the disbursement of financial aid.
Over the years, the pattern of performance in agricultural production has been uneven, with some states performing better than others. Thus, direct engagement with the respective local governments will improve each state's performance in the agribusiness space. Likewise, synergy between federal and state government ministries, departments, and agencies ("MDAs") will stimulate a nationwide growth in the agribusiness sector.
To maintain quality assurance and ensure local agro-products can compete favourably in the export market, relevant authorities should monitor the upstream and downstream activities in the agricultural industry to ensure production and processing across the agribusiness value chains are compliant with regulatory standards.
Effective implementation of these recommendations will assist Nigeria in achieving the full potential of the agricultural sector and pave the way to becoming Africa's agricultural powerhouse.
Driven by economic realities and the clamour for economic diversification, the current administration has pledged its commitment to making the agricultural industry a focal point for economic revival in Nigeria. The Federal government's policy of economic deregulation and liberalisation has opened a window of opportunity for private investors.
With the recent mandate to diversify the Nigerian economy, the opportunities for investment in the agricultural/agro-allied industry are endless. Agriculture is the best venture for investors looking to invest in low-risk, high-reward sectors of the Nigerian economy with guaranteed return on investment.
Consistent and committed efforts to the creation of more favourable policies and fiscal incentives will motivate upcoming players in the industry and trigger an exponential increase in the rate of agricultural investment. It is also important to create awareness of existing incentives to stimulate the proper exploitation of these incentives along the agricultural value chain. Prospective and existing agribusinesses are advised to maximise available incentives, towards a more vibrant agricultural sector.
1. Uche Matthew and Oluwademilade Odutola, Associates, Corporate Finance and Capital Markets Department, SPA Ajibade & Co., Lagos, Nigeria.
2. Odunze, Daisy Ifeoma A review of the Nigerian Agricultural Promotion Policy (2016-2020): Implications for entrepreneurship in the agribusiness sector (2019) https://journalissues.org/wpcontent/uploads /2019/04/Odunze-.pdf accessed on 4 September 2020.
3. This is comprised of four sub-activities: crop production, fishery, forestry, and livestock.
4. Such as fertilizers, seeds, and other agro-chemicals.
5. National Office for Technology Acquisition and Promotion Act Cap. N62 LFN 2004.
6. Section 7 of the National Office for Technology Acquisition and Promotion provides that the consequence of non-registration of an agreement for technology transfer is the prohibition of the making of payments to the foreign recipient rather than the invalidation of the contractual agreement. This was the crux of the decision of the Court of Appeal in Stanbic IBTC V. FRCN & Anor (2018) LPELR-46507(CA).
7. Ibid, Section 4, 5(2), and 7, respectively.
8. LawPadi 9 Things Every Nigerian Should Know About The Labour Act (29th June) https://lawpadi.com/9-things-every-nigerian-know-labour-act/ accessed 2 September 2020.
9. Section 5 of the Labour Act, Cap L1 L.F.N. 2004.
10. According to Section 15 of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap F34 L.F.N. 2004, the Certificate of Capital Importation is to be issued to the foreign investor within 24 hours of the importation of foreign capital.
11. Once obtained, there are no further requirements to update or renew the application for a Business permit. There are also no additional fees to be paid as a continuing obligation, save for an instance where the company seeks to make an amendment to the Business Permit.
13. George Etomi & Partners Doing Business in Nigeria - A Guide for Foreign Investors (2017) https://www.lexology.com/library/detail.aspx?g=5b9a3ddb-6714-46d1-8672-ad5cf8bd0771 accessed on 5 August 2020.
14. Section 43 of the Companies and Allied Matters Act 2020 provides that upon incorporation in Nigeria, the foreign-owned entity possesses the rights and privileges of a natural person.
15. Statutory right of occupancy is the interest granted or conveyed in respect of land in urban areas.
16. If the application is granted, the land-owner is then issued a Certificate of Occupancy (C of O) by the Governor as evidence of their occupational right to the land.
17. Although Section 22 of the Land Use Act contextually proscribes the holder of a statutory right of occupancy to alienate his right without the consent of Governor first had and obtained, it does not prohibit the making of a written agreement to transfer the vendor's entire right prior to obtaining requisite consent from the Governor, if the agreement is subject to the consent of Governor being obtained subsequently.
18. Land fragmentation is not very common in non-urban areas.
19. Section 6 of the Land Use Act, Cap L5 L.F.N 2004.
20. Ibid, section 6(2).
21. Oludayo G Amokaye, Agricultural law in Nigeria: Overview (1 March 2015) https://uk.practicallaw.thomsonreuters.com/9-605-0428?transitionType=Default&contextData=(sc.Default accessed 12 August 2020. See also Ibid, section 36(6) of the Land Use Act.
22. Companies Income Tax Act Cap. C21. L.F.N. 2004.
23. Value Added Tax Cap V1 L.F.N. 2004.
24. Capital Gains Tax Cap C1 L.F.N. 2004.
25. Finance Act 2019.
26. However, the Federal Capital Territory Internal Revenue Service ("FCT IRS") charged with the responsibility of assessing and collecting certain taxes in the FCT, which also accrue to the Federal government.
27. Companies Income Tax Act Cap. C21. L.F.N. 2004.
28. Personal Income Tax Act Cap P8 L.F.N. 2004, Value Added Tax Cap V1 L.F.N. 2004, Capital Gains Tax Cap C1 L.F.N. 2004 and the Finance Act 2019.
29. Section 33 of the Companies Income Tax Act Cap. C21. L.F.N. 2004.
30. Finance Act 2019.
31. Detailed List of Items Exempted From Value Added Tax (Vat) Info 9701 (3)
32. Odunze, Daisy. A Review of the Nigerian Agricultural Promotion Policy (2016-2020): Implications for Entrepreneurship in the Agribusiness Sector (2019) https://journalissues.org/wp content/uploads/2019/04/Odunze-.pdf accessed on 4 September 2020.
33. Section 26 Companies Income Tax Act. https://journalissues.org/wp content/uploads/2019/04/Odunze-.pdf accessed on 4 September 2020.
34. Oghoghomeh, Tennyson An Assessment of Agribusiness Tax Incentives in Nigeria https://www.ijbed.org/cdn/article_file/i-4_c-46.pdf accessed on 5 September 2020.
35. Section 40(11) of the Companies Income Tax Act Cap. C21. L.F.N. 2004.
36. Section 18 of the Finance Act, amending S.77 of the Companies Income Act.
37. Ibid, Section 31(3).
38. Section 32 Companies Income Tax Act.
39. Ibid, Section 34.
40. Section 9 of the Finance Act, amending Section 23(1)(q) of the Companies Income Tax Act.
41. Ibid, Section 9(c).
42. Section 10(2)(a)(b) Industrial development (Income Tax Relief) Act Cap I7 L.F.N. 2004.
43. Ibid, section 17(3).
44. Section 11(2) Companies Income Tax Act Cap. C21. L.F.N. 2004.
45. Section 19(7) Personal Income Tax Cap P8 L.F.N. 2004.
46. For the purpose of this Scheme, a commercial enterprise is any farm or agro-based enterprise with agricultural asset (excluding land) of not less than N100 million for an integrated farm with prospects of growing the assets to N250 million within the next three years and N50 million for non-integrated farms/agro-enterprise with prospects of growing the assets to N150 million.
47. The NIRSAL was established by the 2011 by the Federal Ministry of Agriculture in collaboration with the Nigeria's Bankers' Committee.
48. See Section 45 of the Capital Gains Tax Act, Section 38 Personal Income Tax Act, and Section 45 Companies Income Tax Act respectively.
49. See section 25 of the Nigerian Investment Promotion Council Act Cap. N117 L.F.N. 2004.
50. Aisha Salaudeen, CNN Nigeria improves in World Bank ease of doing business ranking, but is it easier to do business there? (24 October 2019) https://edition.cnn.com/2019/10/24/africa/nigeria-improves-in-world-bank-ranking/index.html accessed on 10 September 2020.
51. Odunze, Daisy. A Review of the Nigerian Agricultural Promotion Policy (2016-2020): Implications for Entrepreneurship in the Agribusiness Sector (2019) https://journalissues.org/wp content/uploads/2019/04/Odunze-.pdf accessed on 4 September 2020.
52. Increased production will help to strike a balance between human consumption needs and the production capacity of agricultural sector.
53. Some state governments such as Osun, Kaduna and Kwara are willing to grant land to foreign companies engaged in agriculture or agro-allied activities with greater speed and less stringent conditions as means of attracting foreign investments.
55. Oni Timothy Olakunle Challenges and Prospects of Agriculture in Nigeria: The Way Forward https://www.iiste.org/Journals/index.php/JEDS/article/view/8461 accessed 7 September 2020.
56. Odunze, Daisy. A Review of the Nigerian Agricultural Promotion Policy (2016-2020): Implications for Entrepreneurship in the Agribusiness Sector (2019) https://journalissues.org/wp content/uploads/2019/04/Odunze-.pdf accessed on 4 September 2020.
57. Oni Timothy Olakunle Challenges and Prospects of Agriculture in Nigeria: The Way Forward https://www.iiste.org/Journals/index.php/JEDS/article/view/8461 accessed 7 September 2020.
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