News in brief: The All Farmers Association of Nigeria (AFAN) suggests that Sokoto state can generate â¦2 billion monthly from agriculture by implementing levies and establishing a commodity board.
The All Farmers Association of Nigeria (AFAN) has said that Sokoto state can generate â¦2 billion every month from agriculture through levies. Ahmed Aliyu, the chairman of the Sokoto AFAN chapter, made the statement as news reports claimed.
He mentioned that a commodity board will help the state collect levies on agricultural products produced locally. It will also help it access funds from the Central Bank of Nigeria (CBN).
However, collecting levies without putting in some form of work will not fly. Aliyu advised the state government to establish infrastructures like public soil laboratories that provide farmers with knowledge on soil conditions, nutrient and inputs requirement for optimal production.
Also, the government should step in to support farmers during critical times like with the fuel subsidy removal. Palliatives like solar-powered water pumping machines, inputs, and so on can place the state on a pedestal to start demanding levies.
Aliyu’s comment makes sense because 80% of Sokoto state inhabitants participate in agriculture. It has agro-allied industries involved in processing crops like cotton, groundnut, sorghum, maize, rice, wheat, sugar cane, cassava, gum arabic and tobacco.
Looking at the Internally Generated Revenue (IGR) of states for the first of 2021, it is clear that PAYE contributes the highest. However, a state like Sokoto, which hosts lots of agricultural activities, can boost its revenue from other taxes which includes levies on market traders, land, and individuals. Although, the state recorded over â¦1.8 billion revenue from these kind of levies between January and June of 2021.
Another avenue it can boost revenue generation is through services provided by its ministries, departments and agencies (MDAs). Like the laboratories the farmers’ association chairman mentioned as well as others like logistics and even extension services.
