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5 Agriculture Nigerian Laws Every Diaspora Investor Must Know – In Nigeria, regulations governing seeds, fertilizers, and pesticides are especially critical. They help ensure that farmers use approved inputs that are safe for consumers and capable of producing high quality yields. For Nigeria to maintain its global leadership in crops like cassava and yam, these laws must be respected and strengthened. For diaspora investors, understanding these rules is not optional. It is essential for protecting capital, ensuring compliance, and achieving sustainable returns.
Here are five key laws to note if you are investing in agriculture in Nigeria from the diaspora.
1. National Agricultural Seeds Act (Cap. N5, LFN 2004)
The National Agricultural Seeds Act regulates the production, certification, and distribution of seeds in Nigeria. Its primary goal is to ensure that farmers have access to high-quality, disease-free, and high-yield seed varieties.
The Act established the National Agricultural Seeds Council (NASC), which oversees seed standards across the country. By enforcing quality control, this law helps farmers improve crop performance, reduce losses, and increase overall food security. Without proper seed regulation, poor yields and widespread crop failure would be common.
2. National Agricultural Land Development Authority (NALDA) Act (Cap. N5, LFN 2004)
The NALDA Act focuses on the effective use of Nigeria’s vast arable land. It created the National Agricultural Land Development Authority, tasked with opening up land for farming, supporting mechanized agriculture, and encouraging rural development.
This law promotes large-scale land preparation, infrastructure development, and farmer support programs. By doing so, it helps reduce rural unemployment, improves food production, and supports Nigeria’s push toward agricultural self-sufficiency.
3. Agricultural Credit Guarantee Scheme Fund Act (Cap. A10, LFN 2004)
Access to funding is one of the biggest challenges facing farmers. The Agricultural Credit Guarantee Scheme Fund Act addresses this by encouraging banks to lend to farmers and agribusinesses.
Under this law, the government guarantees a portion of agricultural loans issued by financial institutions. This reduces the risk banks face and makes them more willing to finance farming activities. The law also ensures that loans are used strictly for agricultural purposes, helping to maintain accountability and protect the integrity of the scheme.
4. Agricultural (Control of Importation) Act (Cap. A13, LFN 2004)
This Act regulates the importation of agricultural materials such as plants, seeds, soil, fertilizers, and packaging materials. Its purpose is to prevent the introduction of pests, diseases, and invasive species that could harm local agriculture.
By controlling imports, the government protects local farmers, preserves biodiversity, and strengthens Nigeria’s biosecurity framework. This law also supports local production by reducing over-dependence on foreign agricultural inputs.
5. Environmental Impact Assessment (EIA) Act (Cap. E12, LFN 2004)
Although the Environmental Impact Assessment Act applies to many sectors, it plays a crucial role in agriculture. It requires that major agricultural projects assess their potential impact on the environment before approval.
This includes evaluating risks such as deforestation, soil degradation, water pollution, and ecosystem disruption. The law ensures that agricultural development is carried out responsibly, balancing economic growth with environmental protection and sustainability.
See Also – 7 Agriculture Investment Tips for Nigerians Abroad
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