Loading...

INCENTIVE PACKAGE

Proposed Incentive Package for the Special Agro-Industrial Processing Zone (SAPZ) in Niger State

Objective

The Niger State SAPZ aims to attract private sector investment by providing a favorable environment for agribusiness, particularly in the rice sector, as well as in other areas such as cassava, maize, sorghum, and millet. These incentives are designed to offer investors security, reduce start-up costs, ensure supply chain stability, and streamline operational processes within the SAPZ, creating a competitive and sustainable agro-industrial ecosystem.

1. Land, Infrastructure, and Real Estate Incentives

  • Investors are assured long-term security for their investments, with clear land use rights and legal protections under state and federal laws, creating a stable and reliable business environment.

  • The SAPZ offers cost-effective, long-term leases on ready-to-use land and standardized buildings, significantly lowering the upfront costs for investors and simplifying setup.

  • The government will simplify the steps for investors to access agricultural land within the Agri-Business and Industrial Region (ABIR), making the setup process smooth and hassle-free.

  • Investors will get affordable and priority access to essential infrastructure—like roads, energy, water, and, where possible, gas connections—ensuring efficient and reliable operations from day one.

2. Subsidies, Fiscal Incentives, and Financing

  • The state will provide one-time financial support to help cover essential start-up costs, like training local employees and setting up key systems for businesses.

  • Investors can benefit from tax breaks, including up to 5 years of tax holidays, and exemptions on import duties for machinery and raw materials, easing the financial load on new businesses.

  • Investors will have access to low-interest loans through partnerships with financial institutions, like BOI, NIRSAL, offering affordable financing specifically for agribusinesses.

  • Eligible businesses are able to apply for can apply for government or partner grants that support sustainable farming practices, technology upgrades, and skills development within the SAPZ.

3. Supply Security Facilitation

  • The program fosters contract farming in the Agri-Business and Industrial Region (ABIR), ensuring steady raw material supplies for investors and affordable, quality inputs for farmers via the Growth Enhancement Support (GES) program.

  • Centers will be set up to collect and store raw materials, helping to ensure a constant supply and avoid production delays.

  • The government will encourage large-scale farming within the ABIR to increase crop production and reduce reliance on imported goods.

  • Agro-supplies traders will be attracted to the SAPZ with leasing deals and subsidies, ensuring reliable materials for investors.

  • Investors will benefit from favorable import terms for raw materials that can’t be sourced locally, reducing delays and extra costs when there are supply shortages.

4. Shared Services and Administrative Incentives

  • A central service center to assist with business paperwork, licensing, and regulations, making it easier to start and run businesses.

  • On-site support for facilities management, secure transportation, worker housing, and banking to ensure smooth operations.

  • Help with recruitment, customs, and office setup for quick business start-up and growth

  • Access to health controls, product certification, and a centralized trading hub for easier compliance, quality control, and market access.

Strategic Benefits of the SAPZ for Investors

The SAPZ in Niger State provides an integrated agro-processing environment within a high-food production area, aligning with Nigeria’s national goals for economic diversification and sustainable development. Key benefits for investors include:

  • Niger State has perfect conditions for growing and processing rice. Investors can set up rice farms and milling factories to meet the rising demand for local rice across Nigeria. The state’s focus on agriculture makes it easier for investors to succeed in this sector.

  • The SAPZ is well-supported with steady electricity from Niger State’s hydroelectric dams, ensuring businesses can run smoothly without power interruptions. There is also easy access to other essential services like water and transportation, making it easier to operate.

  • With 85% of Niger State’s workers involved in farming, there’s a large, skilled labor pool available. The state also offers plenty of land for expansion, and with a growing local market, investors have the chance to build successful and sustainable agribusinesses.