Economics » Agriculture in Nigeria » Effects of Agricultural Policies

Agricultural Policies and Their Effects

Five (5) major agricultural policies were introduced in the period between 1972 and 1985. They include:

  1. National Accelerated Food Production Programme (NAFPP) 1972 – 1973.
  2. Operation Feed the Nation (OFN) 1976 – 1980.
  3. Green Revolution Programme (GRP) 1981 – 1983.
  4. Go Back to Land Programme 1983 – 1985.
  5. A restoration of the elements of NAFPP after the military coup in 1985.

The policy goal of NAFPP was to make Nigeria self-sufficient in food production. Consequently, land reform and mass literacy policies were recommended for farmers.

OFN was initiated by another regime. The policy goal of it was to increase food production on the premise that availability of cheap food would lead to a higher nutritional level which, in turn, would affect national growth tremendously.

OFN lasted till another regime came. The policy goal of GRP had the dual purpose of curtailing food importation through boosting crop production, and promoting big mechanised farming.

By 1983, another military regime toppled the civilian government and subsequently introduced the “Go Back to Land” programme which aimed at making farmers out of all Nigerians. Two years later, in 1985, another regime took over power through a coup and introduced the Directorate of Food, Roads, and Rural Infrastructure (DFRRI) to facilitate rural development. 

In 2011 the administration of President Jonathan launched and Agricultural Transformation Agenda which was managed by the Federal Ministry of Agriculture and Rural Development. The intended outcome of the agenda is to promote agriculture as a business, integrate the agricultural value chain and make agriculture a key driver of Nigeria’s economic growth. To achieve this agenda, the government put in place some new measures:

  • New fiscal incentives to encourage domestic import substitution.
  • Removal of restrictions on areas of investment and maximum equity ownership in investment by foreign investors.
  • Currency exchange controls – free transfer of capital, profits, and dividends.
  • Constitutional guarantees against nationalisation/expropriation of investments.
  • Zero percent (0%) duty on agricultural machinery and equipment imports.
  • Pioneer tax holiday for agricultural investments.
  • Duty waivers and other industry related incentives e.g., based on the use of local raw materials, export orientation.

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