Agriculture

Agriculture is acknowledged to be the predominant economic engagement of the vast majority of the people in Yobe State providing livelihoods for over 80% of the population. This has made Yobe one of the major sources of food production in the Nation. Despite its huge contribution to the national food basket, the agricultural sector in the state can still be developed because most of the modern techniques are not yet popular with 98% of the populace. Mechanization and plantation agriculture/agro-forestry are still in their infancy. Farm inputs such as fertilizers, improved seeds, insecticides, and other foreign methods are being increasingly used.

However, cost and availability are still a challenge. Despite the existence of a high potential for market-oriented agricultural production, farming in the State is still largely at the subsistence level.

Majorly Government’s concern within the sector is to facilitate an agricultural transformation in such a way that the sector significantly contributes to economic growth with poverty reduction and increased food security.

This entails opening up the sector beyond subsistence and enhancing productivity through new production techniques to ensure sustained agricultural growth with agricultural value-chain development that supports increased agro-based investments that provides employment opportunities. The State also boasts of some of the biggest lakes in the country along the lake chad basin with huge potential for a viable fishing industry, and dry-season farming through irrigation.

Policy Thrust:

The major policy objective of the Yobe State Government is to transform the agricultural sector into an efficient productive and profitable enterprise for food security for the population and for the supply of raw materials to the industrial sector. Government pursues this by:

• Prioritizing irrigated farming to complement rain-fed agriculture.
• Incentivizing the private sector to invest in hte construction of storage facilities and the processing of farm produce to reduce post-harvest losses.
• Encouraging private sector participation in all sub-sectors of agriculture, either directly or through joint ventures.
• Encouraging the integration of crops and livestock farming systems and
• The introduction of drought-tolerant crop varieties

Investment Opportunities:

• The State’s enormous potential for the production of food and industrial raw materials.
• A large population of livestock including over 12 million birds and nearly 10 million goats, sheep, and cattle.
• The State has a large expanse of agricultural land, lakes, and flood plains suitable for crops, livestock, and fish production.
• Out of about 2.24 million hectares of land area, over 1.6 million hectares consisting of upland soils, are cultivatable during the rainy season with an additional 381,000 hectares consisting of Fadama Lands and River floodplains suitable for all-year-round irrigation.
• Currently, it is estimated that less than 10% of the total Fadama lands is actually being utilized.
• Yobe State’s enormous comparative advantage in the production and processing of a number of crops remains largely untapped as production has also largely remained for subsistence. These include important Cash and Food Crops such as Millet, Sorghum, Maize, Cowpea, Rice, Wheat, Cassava, Cocoyam, Gum Arabic, Livestock, Tamarind, Mangoes, Oranges, Tomatoes, Onions, Cabbage, Lettuce, Spinach, Groundnut, etc.
• Indicative inventory of livestock includes short-legged cattle, sheep, goats, Fulani cattle, etc. which provide animal protein.

These resource endowments provide vast opportunities for crop, livestock, and fisheries production; and for the development of the agro-processing and allied manufacturing industries.

The State welcomes investments in the following areas:

• Agricultural Inputs: opportunities exist in the production and supply of.
  • Fertilizers and agrochemicals,
  • High-yielding seeds and seedlings varieties,
  • Irrigation equipment and infrastructure,
  • Heavy equipment and machinery.
• Processing of agricultural crops:
  • Rice milling
  • Flour milling
  • Fruits/Citrus Processing and
  • Grains processing
• Livestock Production
  • Animal breeding for domestic consumption and export, especially to the middle east.
  • Production of milk and milk-related products.
  • Establishing a standard abattoir for processing meat for local and export markets.
  • Animal feed processing.

• Value Chain in Tomato Cultivation:
  • Export of fresh tomatoes.
  • Production of Plum Tomato, tomato paste, and tomato puree.
  • Production of tomato juices.
  • Fresh tomato preservation.
  • Production of sundried tomato.
• Production of edible oils from:
  • Soya Beans
  • Groundnuts
  • Sesame Seeds and
  • Cotton Seeds
• Leather and allied products
  • Tannery
  • Shoe Manufacturing
  • Leather Goods

Incentives and Government Support

Given its strategic importance to the Yobe economy, agriculture is being accorded a priority status by the State. In terms of annual budgetary allocations, the sector is among the top five and a large chunk is deployed in creating an enabling environment for private sector participation in agricultural development. The following are some of the enablers:

• Land Reform to accommodate large-scale mechanized farming.
• Creation of a value chain through the establishment of small-scale Agro-allied processing industries.
• Free extension services to farmers.
• Availability of microcredit to eligible small and medium-scale farmers.
• 100% capital allowance granted to the company’s business in the agro-allied processing industries.
• Agro-allied plant and equipment enjoy enhanced capital allowances of up to 50%.
• Accelerated depreciation of capital allowances [up to 95% on some assets in the first year] with deductibility on 100% of profits.
• Pioneer status for specific agricultural and agro-processing activities.
• 1% duty on all agricultural machines and equipment.
• Agricultural Credit Guarantee Scheme Fund [ACGSF] administered by the Central Bank of Nigeria guarantees up to 75% of all loans made by commercial banks to agricultural-related activities.

The National Policy on Agriculture also provides the following incentives for the sector:

This comprises of waiver for various state and federal taxes for both the short terms and long-term investors.
These include:

• Projects’ investment of up to $5m -10 years
• Project Investment of $5m – $15m – 20 years
• Project Investment of $15 – $25m – 30 years
• Project Investment of $25 – $50m – 40years
• Project Investment of more than $50m – 50 years

Tax reduction of up to 35% of the cost of producing infrastructural facilities (capitalized during the tax holding period), distributed over a five-year period. Benefits in respect of these incentives apply to both existing and prospective investors throughout the investment period.

In addition to the above incentives provided by the Federal Government, Yobe State provides the following incentives for potential and existing investors in the Agricultural sector:

• Subsidized leasing of land for agricultural production or establishment of value addition and agro-allied.
• Access to highly subsidized Agricultural inputs (seeds, fertilizer & veterinary drugs, etc).
• Access to highly subsidize warehousing facilities for agricultural inputs suppliers and Agro-dealers.
• Free Emergency Intervention on Pest/Disease outbreaks on crops and livestock.
• Free annual vaccination of all species of livestock.

This package of incentives is reasonable enough to support substantial private-sector investments in agricultural production, processing, and value-chain development.