The Nigerian Agricultural Fiscal Policy has undergone profound evolution, intricately woven into the system of the nation’s economic aspirations, as observed by FarmingFarmersFarms explorations. Historically, from the pre-independence era to 1985, the emphasis was on stimulating agricultural productivity and encouraging exports. During this period, fixed exchange rates and trade liberalisation measures were implemented, accompanied by fiscal incentives like accelerated capital allowance on agricultural capital.
The introduction of the Structural Adjustment Programme (SAP) in 1986 marked a paradigm shift. This era sought economic diversification, fiscal viability, and private sector stimulation. The agriculture sector witnessed substantial changes, including the liberalisation of external trade, the abolition of marketing boards, and the establishment of fertilizer and irrigation projects. In the post-SAP period (1989-1994), the focus shifted to inflation moderation, reduction of external sector pressures, and private sector stimulation. The dual exchange rate system was introduced, accompanied by further trade deregulation measures and fiscal adjustments.
Subsequent policy regimes, particularly from 1995 to 2018, witnessed continued liberalisation and efforts to attract private investment. Key initiatives like the Agricultural Transformation Agenda (ATA) and the Agricultural Promotion Policy (APP) emphasised productivity enhancement and institutional realignment. The National Agricultural Resilience Framework (NARF), introduced in 2014, underscored climate risk management and social safety nets within the agricultural planning and implementation landscape. Throughout these epochs, the Nigerian Agricultural Fiscal Policy mirrors a dynamic interplay of global economic trends and domestic priorities, reflecting the nation’s commitment to sustainable agricultural development and economic growth.