The cultivation of the improved cassava varieties by farmers in Nigeria has enhanced the position of Nigeria as the world-leading producer of cassava with production output of 45 million MT of fresh cassava root in 2014. However due to the lack of modern logistic, infrastructure and technology only about 30% of fresh cassava root are processed into finished products which are mainly cassava flour and cassava starch. Therefore, we oversee an opportunity for foreign investment in the cassava industry in Nigeria.
Potential products: Bioethanol, High Quality Cassava Flour, Industrial Grade Cassava Flour, High Quality Cassava Chips, Starch and Wet Cake, Food products using cassava as based ingredient.
Federal Government Incentives (Source: Nigerian Investment Promotion Commission)
(i) COMPANIES INCOME TAX
The Companies Income Tax Act has been amended in order to encourage potential and existing investors and entrepreneurs. The current rate in all sectors, except for petroleum, is 30 percent.
(ii) PIONEER STATUS
The grant of Pioneer Status to an industry is aimed at enabling the industry concerned to make a reasonable level of profit within its formative years. The profit so made is expected to be ploughed back into the business. Pioneer status is a tax holiday granted to qualified or (eligible) industries anywhere in the Federation and five-year tax holiday in respect of industries located in economically disadvantaged local government area of the Federation. At the moment, there is a list of 71 approved industries declared pioneer industries, which can benefit from tax holiday. To qualify, a joint venture company or a wholly foreign-owned company must have a minimum share capital of N10milion and incurred a capital expenditure of not less than five million Naira whilst that of qualified indigenous company should not be less than N150,000.00. In addition, an application in respect of Pioneer Status must be submitted within one year the applicant company starts commercial production otherwise the application will be time-barred.
Turn-Key Project Management
Smart International Consulting can provide turn-key project management for your investment in Nigeria:
Cassava Processing Plant
Smart International Consulting proposes tailor-made services to manage your agriculture, agro-industry project since the early stage until the complete achievement. For further information, please contact us Email: firstname.lastname@example.org WhatsApp:+85577778919.
Illustration Photo: Woman operating fabricated cassava processing machine at IITA Cassava Processing Unit Ibadan, Nigeria (Credit: International Institute of Tropical Agriculture / Flickr CC BY-NC 2.0)