Nigeria has over 84 million hectares of arable land, of which only 40% is cultivated; 230 billion cubic meters of water; abundant and reliable rainfall in over two thirds of its territory, the country has some of the richest natural resources for agricultural production in the world. Not surprisingly, with over 182 million people, Nigeria is Africa’s largest market. Nigeria is the world’s largest producer of Cassava and the fourth largest producer of groundnut. Also, Nigeria is the fourth largest cocoa producer in the world with an output of 235,000 metric tonnes per season.
Nigeria is made up of six (6) geopolitical zones and each of the zones is blessed with abundant natural resources.
Main Export Products
Nigeria has a long-standing agricultural tradition, and is well known for its abundant fertile lands and perfect weather conditions for a variety of crops.
Agriculture is of great socio-economic importance to Nigeria and one of its main engines for economic growth as it accounts for over 22 percent of Nigeria’s GDP.
Source: UN Comtrade and Observatory of Economic Complexity
Agriculture presents a US$7.76 billion opportunity in import substitution (15 percent of total import). In order to improve food export earnings and reduce imports, the sector requires an investment of about US$2.4 billion annually (US$500 million of this amount is attributable to irrigation).
Nigeria’s climate and abundant water resources, along with the wide availability of fertile land, creates the ideal setting for the establishment of export-oriented agricultural production.
Nigerian cassava production is by far the largest in the world, a third more than production in Brazil and almost doubles the production of Indonesia and Thailand. Cassava is produced in 25 out of the 36 states in Nigeria.
Over 90 percent of the cassava produced in Nigeria is processed as traditional African food (Garri, fufu, etc.). Given the enormous cassava value chain, there exist a huge investment opportunity in this sub-sector.
Nigeria is the second largest producer of citrus in the world, and the largest producer of pineapple, mangoes, and tomatoes in Africa. However, Nigeria spends about US$1.1 billon annually on fruit juice and processed tomatoes.
- Nigeria is advantageously located in the gulf of Guinea with direct freight access to America (North & South) and Europe
- Easy access to the developed markets of North America and Europe, which have a combined GDP of over US$43 trillion
- An extensive network of transport routes that links the country to neighboring countries like Niger, Chad, Cameroun, and Benin Republic
- A total of 54 airports (40 with paved runways, 14 with unpaved runways)
- Six (6) operational ports
- Five (5) Heliports
Abundant Land and Water Resources
- Land: 910,768 sq. km
- Water: 13,000 sq. km
Competitive Labor Costs and Abundant Human Capital
Nigeria’s labor cost is one of the most competitive in the world, with an average monthly wage of US$213 (according to the National Bureau of Statistics).
Nigeria has a young and dynamic population of over 70 million persons within the ages of 15 to 35.
- Pioneer Status (tax holiday) granted for 3 years and renewed for the next two years
- 100 percent repatriation of profit net of taxes
- Capital allowance not restricted. Granted in full -100%
- Agricultural and agro-allied industries machines and equipment enjoy 0% duty
- Agro-allied plant and equipment enjoy enhanced capital allowance of up to 50%
- Agricultural Credit Guarantee Scheme Fund (ACGSF): Up to 75% guarantee for all loans granted by commercial banks for agricultural production and processing
- Interest Drawback Program Fund: 60% repayment of interest granted to those who borrow from banks under the ACGSF for the purpose of agriculture production and processing provided such borrowers repay the loan as scheduled.
- Investment Promotion and Protection Agreement: The IPPA helps to guarantee the safety of investment of the contracting parties in the event of war, revolution, expropriation or nationalization.
Source: Nigeria Investment Promotion Commission
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