Nigerian companies involved in cashew processing will enjoy income-tax-free for three years which can be extended to five years. This move is part of the government’s efforts to diversify the economy and boost the food and agriculture sector.
The Minister of Industry, Trade and Investment, Adebayo Adeniyi through the Permanent Secretary, Ministry of Industry Trade and Investment, Dr. Evelyn Ngige disclosed this at the ongoing 16th edition of the African Cashew Alliance Conference in Abuja which started on Monday and is scheduled to close on Thursday, September 15.
The annual conference which is holding in Nigeria for the first time since its establishment in 2006 is alternated amongst member countries to avail cashew-producing countries of the opportunity to share experiences and attract investment to the sub-sector. This year’s event has the theme; “Strengthening Sustainable Kernel And By-Products Marketing In The African Cashew Industry”.
According to the Minister, “This event has continued to be of immense support to the over 48 cashew-producing African countries in providing access to important knowledge and Information that assist in the development of the cashew value chain of their respective countries.
The minister noted that since the inception of the current administration, the Nigerian Government has continued to pursue deliberate policies to diversify the nation’s economy away from its over-dependence on the oil and gas sector. “It is in this regard that Nigeria like other member countries of the ACA, has sustained its commitment to the provision of enabling environment and incentives for the development of the cashew value chain” he stated.
“These efforts have enhanced activities in the subsector, resulting in an increase in the commodity’s production in the country. Presently, some government incentives in the sector include. Zero percent (0%) duty on all Agro-allied machines and equipment acquired for the production of cashew. Capital allowances are granted 100% to companies involved in cashew production and processing.
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”As of today, Nigeria produces about 260,000 metric tonnes of cashew nuts annually. Plans are ongoing to raise the annual production capacity of cashew nuts to well over 500,000 metric tonnes. Out of the current production figure of 260,000 metric tonnes, 180,000 metric tonnes are traded as raw cashew nuts. 15,000 metric tonnes are processed into cashew kernels and about 10,000 metric tonnes of the kernel are exported.
“Cashew production is limited to only about 10 states out of the 36 states and the Federal Capital Territory. The leading state in cashew nuts production is Kogi State”.
Source: Tekedia
