Nigeria’s food insecurity fears have heightened in recent months owing to a spate of insurgency in the country and banditry that has forced many farmers to abandon their farmlands.
Also, agribusinesses are incapable of reaching their potential as governments at various levels continue to impose multiple taxes on them.
Key stakeholders in the sector say the indiscriminate imposition of the same tax by the three tiers of government are preventing agribusinesses to scale and create jobs.
The stakeholders in a statement signed by their spokesperson, Bala Abdulkadir, a copy of which was made available to journalists noted that food scarcity is imminent in Nigeria with activities of herdsmen and militants engaging farmers and sending them out of business.
“Also, multiple taxations imposed by some state governments on agribusinesses are not helping the issue. Everyone knows the fact that agribusiness is hazardous. Hence, many of the international communities apply tax relief or exception to their farmers to guarantee food security,” the statement stated.
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“Other challenges militating against agribusiness include: changing climate, flood invasion, pest invasion, disease outbreak, and glut among others. But it is pertinent to note that the current cost of diesel and electricity tariff in running farm machineries is not helpful, as this is also a burden to farmers on its own,” the statement added.
It states that the combination of the various challenges has made it difficult for agribusinesses as their operators are going through horrifying experiences from tax authorities.
The agriculture stakeholders also noted that government has also introduced many wages/levies which amount to a burden on farmers. They listed these to include: environmental levies and gaseous emission by the ministry of environment.
Other bottlenecks they said are putting burden on farmers are land use charges by the Ministry of Lands, Ministry of Agriculture, the introduction of levies on items and products produced by farmers which also includes: charges on day-old chicks, charges on feed, charges on broiler among others.
The stakeholders also alleged the transportation ministry of having various operators dealing decisively with farmers transporting their goods. These include V.I.O, Police, traffic police, FRSC, local government contractors /agents, and consultants generating all kinds of levies from farmers.
“The worse part of it is the outrageous bill imposed by these tax collectors, that is, tax consultants, contractors, and agents. They raised bills in millions and then call for negotiation,” the statement said.
The stakeholders urged the government to tackle the rate of high insecurity in the country while addressing the issues of multiple taxations imposed on farmers, noting that the sector can only generate jobs when agribusinesses are profitable.
“It is time for government at all levels to rise to defend farmers and get them protected against multiple taxes and all other challenges.
“We suggest farmers should be considered for tax relief or in the alternative, allow the company income tax and personal tax income remains rather than looking for an avenue to send farmers parking through other means of levies,” the statement urged.
