Federal government says companies involved in cashew production and processing will enjoy 100 percent capital allowances.
Capital allowance is an amount of money spent on business assets that can be subtracted from what a business owes in tax.
Adebayo Adeniyi, minister of industry, trade and investment disclosed this at the 16th edition of the annual conference of the African cashew alliance in Abuja on Monday.
The minister said the conference was held in Nigeria for the first time since it began in 2006, adding that the event which is held annually amongst cashew-producing countries, was an opportunity to share experiences and attract investment to the sub-sector.
Adeniyi was represented by Evelyn Ngige, permanent secretary of the ministry of industry trade and investment.
He also assured that companies involved in cashew production and processing are exempted from taxes.
“This event has continued to be of immense support to the over 48 cashew-producing African countries in providing access to important knowledge and information that assist in the development of the cashew value chain of their respective countries,” he said.
“You will recall that since the inception of this administration, the government has continued to pursue deliberate policies to diversify the economy away from its over-dependence on the oil and gas sector. It is in this regard that Nigeria, like other member countries of the ACA, has sustained its commitment to the provision of enabling environment and incentives for the development of the cashew value chain.
“These efforts have enhanced activities in the subsector, increasing the commodity’s production in the country. Presently, some government incentives in the sector include; zero percent duty on all agro-allied machines and equipment acquired for the production of cashew. Capital allowances are granted 100 percent to companies involved in cashew production and processing.
“As of today, Nigeria produces about 260,000 metric tonnes of cashew nuts annually. Plans are ongoing to raise the annual production capacity of cashew nuts to well over 500,000 metric tonnes.
“Out of the current production figure of 260,000 metric tonnes, 180,000 metric tonnes are traded as raw cashew nuts. 15,000 metric tonnes are processed into cashew kernels and about 10,000 metric tonnes of the kernel are exported.
“Cashew production is limited to only about 10 states out of the 36 states and the Federal Capital Territory (FCT). The leading state in cashew nuts production is Kogi State. Other states involved in the production of cashew nuts include Abia.”