FG invests N3.6 billion in agricultural mechanization

“The Nigerian Government has disbursed the sum of N3.6 billion to the National Agricultural Mechanisation Transformation Agenda, a public private partnership scheme towards addressing the low level of penetration of mechanised agricultural practise in the country,” the Minister of Agriculture and Rural Development, Akinwunmi Adesina revealed this recently in Abuja.

The Minister, who was represented by the Permanent Secretary of the Ministry, Ibukun Odusote in a keynote address delivered during an interactive session with agricultural transformation intervention partners at the Transcorp Hilton Hotel stated that the President Goodluck Jonathan’s administration did embarked on the scheme to address the low level mechanisation in the nation’s agricultural production system.

While informing on the mechanisation status of the nation’s agricultural production system, the Minister estimated that about 30,000 tractors exist in Nigeria, fifty percent of which are out of service. Adding, the level of mechanization in the country is valued at 0.03 horsepower per hectare against the 1.5 horse power recommended by the Food and Agriculture Organisation (FAO).

Akinwunmi Adesina indicated from the FAO approximation that only 1 percent of farm power in Sub-Saharan Africa is driven by mechanical means, whilst less than ten percent is driven by draught animals and the residual 89 per cent provided by human labour. He further averred that though the Government has subsidised the cost of tractors brought into the country by 45 percent, the desired impact of the intervention has remained minimal since small scale farmers who account for 80 per cent of food producers in the country have little or no access and can neither afford to buy nor hire the equipment.

“This low level agricultural mechanisation in the country limits the capacity of Nigerian farmers to expand their cultivation areas, perform timely farming operations and achieve economies of scale in raising food production. Nigeria needs a minimum of 746, 666 tractors equipped with tillers and other support gadgetry to sufficiently mechanise agriculture going by best practices,” he said.

According to him, to commence the ongoing mechanisation intervention programme, the Federal Government has approved the release of an intervention fund to the sum of N3.6 billion which is domiciled in the Bank of Agriculture towards the establishment of an Agricultural Equipment Hiring Enterprise (AEHE). He also explained that in the first phase, the Federal Government will make available 400 units of tractors, 500 power tillers as well as harvest and post-harvest equipment towards setting up a minimum of 80 centres and will be replicated in the second phase. ‘In the third phase, he noted, 250 tractors will be made available.’

The Minister disclosed that the Federal Government has earmarked to bring in 1,050 units of tractors, 1,500 power tillers and 2,400 units of harvest and post-harvest equipment such as reapers, grain threshers, and cassava peelers at the end of the intervention scheme to set up 210 AEHE in demand-driven locations nationwide. “The intervention will create 6, 090 direct jobs for unemployed youths, mechanise a minimum of 488, 250 hectares of land, while 2, 441, 250 metric tons of food will be added to the national food output. Taking cognisance of the difficulties encountered by rural farmers, Government for a start will clear 6, 400 hectares of land nationwide for cassava production,” the Minister attested.

While noting that Nigeria needs to vigorously pursue the commercialisation of agricultural providers, he observed that in the short term, Government will provide 6,000 units of tractors and power tillers and about 13,000 units of harvest and post-harvest equipment as well as set up 1,200 AEHEs to render agricultural support services to farmers through the scheme.

On the modalities for accessing the fund, the Managing Director of the Bank of Agriculture (BOA), Muhammed Santuraki assured bankers and other financiers of Government’s preparedness for the scheme, stressing that the Government has lodged all the funds set aside for the scheme in the bank.

A member of the Tractor Owners and Operators Association of Nigeria (TOOAN), Bitrus Elesa who spoke on behalf of the body, expressed the group’s appreciation for government’s efforts to transform the lives of Nigerian farmers and the agricultural sector as a whole. He said that the members of his association who benefitted from government-facilitated tractor acquisition facilities in the last two years have fully met their commitments. He also indicated that with increased investment by manufacturers and vendors of agricultural equipment in the country, particularly local manufacturing and service providers will be able to raise agricultural mechanisation services beyond land clearing and ploughing to other areas to gain the interest of the younger generation in agriculture.

The Permanent Secretary in the Ministry, Ibukun Odusote on behalf of the Minister thanked the participants, home and abroad for their attendance and interest in the government-driven initiative. She posited that with a strong and effective interface between government and the private sector, Nigeria has been afforded a brilliant opportunity to raise the capacity of its agriculture to adorable position, rather than being considered as a development programme as many currently assume.

Among stakeholders at the interactive forum were the Bank of Industry (BOA), commercial banks, agricultural equipment manufacturers and representatives, vendors as well as agricultural equipment operators.