The importance of agriculture especially in a developing country cannot be over-emphasised. It had been the mainstay of the Nigerian economy since the colonial period. Apart from subsistence farming which catered for the food needs of the local population, Nigeria had exported cash crops in the past.
Unfortunately, the blessings of the oil boom have diverted our attention from agriculture in the past decade with the consequent neglect of it. But the dwindling fortunes of oil appear to have induced us to switch our attention once again to agriculture.
To this end, some practical steps have been taken by Government to encourage investment in agriculture. These include subsidising fertilisers and seeds for farmers, the establishment of various Agricultural Development Projects, the Communal Farm Programmes and the establishment of various River Basins Development Authorities. Other recent measures include tax relief for agro-allied projects; tax holidays for investors in combined agricultural productions and processing; capital allowances for capital expenditure on plant and equipment for, and equipment leasing to, agriculture; removal of import duties on tractors and other agricultural machinery and equipment and increased foreign equity participation within the framework of the Enterprises Promotion Decree.