Where agricultural development is concerned along with food security, reduction of food imports, processing of farm produce for value addition and input supply, the Federal Ministry of Agriculture & Rural Development and all the State governments are trying.
This idea focuses on attracting private sector agribusinesses to set up processing plants in zones of high food production, to process commodities into food products. This would be enabled by government by putting in place appropriate fiscal, investment and infrastructure policies for Staple Crops Processing Zones.
Attraction of the Private sector to invest in the Agric Sector – actualization of Value chain finance
The focus of this policy is to attract private sector agribusinesses to set up processing plants in zones of high food production, to process commodities into food products. The government will enable this by putting in place appropriate fiscal, investment and infrastructure policies for staple crop processing zones. Some of the policies include:
– Tax breaks on import of agricultural processing equipment
– Tax holidays for food processors that locate in these zones
The government would provide supportive infrastructure especially roads, logistics, storage facilities and power. Other infrastructural facilities to be provided will included irrigation facilities, flood control, roads, rail, air etc.
Eventually Staple Crop Processing Zones (SCPZ) will link farmers in clusters to food manufacturing plants.
The location of Staple Crop Processing Zones will be dependent on a combination of State government support and an analysis of the comparative advantage of the region to produce the identified commodity.
If this policy is faithfully executed, Nigeria is on the verge of feeding the entire African continent and beyond.