Agric Mechanisation: One Year After Signing MoU, FG Still Awaits Delivery Of 2,000 Tractors

One year after the federal government signed a Memorandum of Understanding (MoU) with global agricultural machinery giant John Deere for the delivery of 2,000 tractors yearly to bolster mechanised farming and enhance food security, the deal has not been realised.

The delay in the delivery of the machines has raised questions about the implementation of the ambitious plan that was touted as a game-changer for Nigeria’s agricultural sector.

Nigeria still lagged behind among global agricultural mechanisation-based economies such as Brazil, India and Vietnam and remains one of the lowest levels of mechanisation in sub-Saharan Africa.

According to the Food and Agriculture Organisation (FAO) of the United Nations (FAO), Nigeria has only 0.27 tractors per 1,000 hectares of cropland, compared to 2.7 in Ghana and 4.7 in South Africa.

Our flagship newspaper, LEADERSHIP Daily had reported that the agreement with John Deere, signed in November, 2023, was part of the federal government’s plan to produce and supply 10,000 tractors to farmers for five years, in tranches of 2,000 units annually.

The initiative was expected to modernise agriculture, create jobs, and ensure food and nutrition security in the country.

The agreement also covered the establishment of tractor assembly plants and 52 service centres nationwide, as well as the supply of spare parts and training for operators and mechanics.

In addition to the MoU with John Deere, the federal government inked a separate five-year agreement with Belarus through AFTRADE DMCC. This deal aimed to establish tractor assembly plants and supply 9,022 agricultural implements annually alongside the 2,000 tractors.

These combined efforts were intended to transform Nigeria’s agricultural landscape by addressing land preparation challenges and boosting year-round farming.

According to the minister of agriculture and food security, Abubakar Kyari, the partnership was designed to make tractors affordable for farmers through low-interest financing facilitated by the Bank of Agriculture (BoA).

The initiative which was launched with fanfare, following meetings between the Vice President Kashim Shettima and John Deere officials at the World Food Prize Foundation event in Iowa, USA in 2023, encouraged farmers to form cooperatives to access the tractors, repayable in instalments.

At the time of the MoU signing, Kyari described the agreement as a landmark development that would enhance mechanised farming and contribute to Nigeria’s self-sufficiency in food production.

The government’s role, he emphasised, was to create an enabling environment for the private sector-led initiative.

Despite these high-profile agreements, the first batch of tractors is yet to arrive.

While the federal government has reiterated its commitment to the project, there has been little communication on the reasons behind the hold-up or any revised timeline for delivery.

In March this year, Kyari expressed dissatisfaction over the delay in delivery of 2, 000 tractors by John Deere and Tata Group after signing the MoU in November last year.

He spoke during a technical meeting with delegates from John Deere and Tata Group on Mechanisation at the Ministry’s Headquarters in Abuja recently.

Kyari pointed out that “the President is aware of the meeting today and is waiting for the outcome, and how far we have gone. I have expected to hear that the tractors are on the way and will arrive in Nigeria soon.

“There should be a time limit in order to give ourselves the desired achievement to this business, we really have to wrap it up and step up as well to ease difficulty because we expected to use it during this dry season to see how effective it is before the wet season comes”, the minister added.

When LEADERSHIP Sunday made findings on the state of the MoU, the director of the Federal Department of Agriculture (FDA), Ministry of Agriculture and Food Security, Engr Garuba Abubakar stated that the equipment would be on the ground by December 2024.

Abubakar disclosed that three key mechanisation projects were nearing completion, stating that the payment for this for John Deere was in progress, with the mobilisation fee of 30 percent of the total cost recently submitted.

He said the delivery process has commenced, with some units reportedly shipped and awaiting clearance at Lagos Ports.

On Belarus tractors, Abubakar said the procurement was also in advanced stages with payment process nearly completed, and shipments anticipated to arrive within 45 days.

On the Greener Hope, a private-sector-led initiative, supported by the federal government, the director explained that plans were in place to ensure a seamless distribution and deployment upon arrival across 53 designated service centres.

“We have worked out the modalities for the distribution to ensure a swift and efficient dispatch to designated locations. Our goal is to ensure these tractors are ready for the dry season cultivation, distribution modalities are already in place, and delivery will not be delayed once they are in Nigeria,” he said.