Fiscal Policy and Agriculture: Legal and Policy Framework for Stimulating Growth in Nigeria's Agricultural Sector
in RT Ako & DS Olawuyi (eds.), Food and Agricultural Law: Readings on Sustainable Agriculture and the Law in Nigeria (Nigeria: ABUP, 2015) (ISBN: 978-1-926832-27-2) 162-184
24 Pages Posted: 14 Sep 2017 Last revised: 21 Sep 2017
Date Written: December 31, 2015
Research and studies have shown a direct relationship between the viability of the agricultural sector of an economy and its development. The relationship stems from the fact that agriculture in addition to providing for the dietary needs of the society is an employer of labour and potential contributor to the coffers of the nation. On this premise, this chapter argues that the fiscal policy of state is and can be used to stimulate the growth of the agricultural sector. It further argues that the current policy-driven provisions (the agricultural transformation agenda and the budgetary provisions) as well as the tax laws are fiscal tools which shape and impact on the sector. It however sounds a note of warning: that the use of budgetary provisions to structure and/or modify the course of taxation and the tax system are of limited legal effect (and could be perceived as illegitimate) in view of the fact that taxation cannot be without legislation. It is against this backdrop that the chapter makes recommendations that include the enactment of the budgetary provisions into law, the repeal of the Land Use Act 1978, the harmonisation of agricultural research and tax policy reform.
Keywords: Nigeria, Agriculture, Taxes
JEL Classification: H26, H30, K34
Suggested Citation: Suggested Citation