Tax incentives as key to unlocking Nigeria’s agricultural potential – Chief Blakey Ijezie
In a keynote address he delivered delivered at the 7th Edition of Blakey’s National Tax Conference, the renowned accountant and tax expert, Chief Blakey Ijezie outlined how strategic tax incentives can catalyze an agricultural revolution in Nigeria. The speech, delivered to a packed audience of business leaders and policymakers, emphasized the crucial role that fiscal policies must play in driving investment, boosting productivity, and enhancing competitiveness in the country’s agricultural sector.
The event was held on October 10, 2024, at the Banquet Hall, Banex Mall, Lekki, Lagos. Chief Ijezie’s address, titled ‘The Catalyst of Change: Agricultural Revolution in Nigeria – The Tax Incentives Edge,’ made a compelling case for how targeted tax breaks could fuel growth in the industry.
“By reducing tax burdens, we are empowering farmers and agribusinesses to invest more in their operations, increasing productivity and competitiveness,” he stated.
He pointed out that tax incentives would not only attract private investment but also encourage the adoption of advanced farming technologies, particularly in precision agriculture and value addition. “Investors are looking for environments where they can maximize returns, and with the right tax policies, Nigeria can become a hub for agricultural investment,” Chief Ijezie added while stressing that such incentives could make Nigerian agricultural products more competitive in both domestic and global markets.
A major highlight of the speech was his focus on supporting smallholder farmers, who account for a significant portion of Nigeria’s agricultural output. “Smallholder farmers are the backbone of this industry,” he said. “Targeted tax incentives can help them access the resources and technologies they need to scale up and improve their yields.” This, he noted, is essential for achieving broad-based growth in the sector.
Chief Ijezie also commended the recent establishment of the Ministry of Livestock Development by President Bola Tinubu, calling it a crucial step towards boosting the livestock sector. “The Ministry of Livestock Development is a game changer,” he remarked. “With the right focus on improving animal health, disease control, and value chains, we can turn Nigeria’s livestock industry into a powerhouse.”
He then outlined several tax incentives that could support the ministry’s goals, including capital allowances for agricultural assets, investment allowances, and exemptions from import duties on animal feed. “These incentives will ease the financial burden on livestock farmers, allowing them to invest in better infrastructure and practices,” he explained. He also called for VAT exemptions on livestock products and services, noting, “This will stimulate market growth and make these products more accessible to consumers.”
Additionally, Chief Ijezie proposed a research and development tax credit for agribusinesses, saying, “Innovation is key to the future of agriculture. By providing tax credits for R&D, we can drive advancements in technology and sustainability.” He concluded by urging both the government and private sector to act swiftly, asserting, “The time is now. With the right tax policies, we can make Nigeria’s agricultural sector a global force.”
The event, hosted by the Blakey Ijezie Foundation as part of its corporate social responsibility initiatives, was well-attended and left participants with a renewed sense of purpose. Chief Ijezie’s vision for the future of Nigeria’s agriculture resonated strongly with the audience, particularly his emphasis on tax incentives as the criticaldriver for growth.
•Photo Caption: Representatives of Anambra State Government at the 7th Edition of BLAKEY’s National Tax Conference. With the Convener, Chief Blakey Okwudili Ijezie, FCA (Ite-Ozubulu Nine) 2nd right.
The agriculture sector is one of the most incentivised sectors in the economy. It contributes over 30 per cent to the country’s GDP but minimally to tax because of the plethora of tax incentives that the sector enjoys.
Even though it is not yet ‘uhuru’, l believe that the current challenges have more to do with insecurity, banditry, access to farmlands, credit facilities, etc.