Federal Gov’t Okays $70m Contract To Procure 2,000 Tractors To Farmers

The Federal Government has inked a $70 million procurement contract with AGCOMS International Trading Limited, a John Deere Nigerian sales dealer, to deliver 2,000 tractors to farmers as part of a nationwide mechanisation programme.

The fresh deal, which is spearheaded by the National Agricultural Development Fund (NADF), involved the implementation of the 2023 10,000 tractors Memorandum of Understanding (MoU) with the agricultural equipment manufacturing giant, John Deere, as one of the federal government’s key mechanisation programmes.

The procurement contract covers the supply of tractors, including plows, harrows, ridges, and 100 combined harvesters, with the first batch expected to be delievered before the wet planting season begins.

A critical component of the agreement includes the establishment of an assembly plant near Nigerian ports to ensure the tractors are built locally.

LEADERSHIP recalls that in October, 2024, the Federal Executive Council (FEC) mandated NADF to take over the deployment of 10,000 tractors nationwide under the agreement with John Deere.

The initial MoU which was inked between the Federal Ministry of Agriculture and Food Security and John Deere, was part of the federal government’s plan to produce and supply 10,000 tractors to farmers over a period of five years, in tranches of 2,000 units annually, beginning 2024.

However, more than a year afterwards, no tractor has been delivered, causing concern among stakeholders, including the House of Representatives that recently called for an investigation into the non-delivery of the equipment.

According to the Executive Secretary of NADF, Mohammed Abu Ibrahim, the new deal was to ensure speedy delivery of the equipment in alignment with President Bola Tinubu’s strategy to diversify the economy and improve agricultural mechanisation.

Speaking during the contract signing ceremony involving the Minister of Agriculture and Food Security, Senator Abubakar Kyari, in Abuja on Thursday, Ibrahim noted, “The goal is to assemble the tractors locally, which will create jobs and ensure that the technology behind these machines is fully integrated into Nigeria’s agricultural framework.

“We’ve also signed an agreement with the Nigerian Ports Authority to facilitate the importation and delivery of these tractors to various regions across the country.”

In his remarks, the minister stated that the programme aimed to revitalise Nigeria’s agricultural sector by increasing mechanisation, expanding farmlands and addressing the challenges of an aging farming population.

The minister added that the mechanisation policy was designed to attract youth and women into agriculture by reducing the drudgery associated with traditional farming methods.

Kyari stressed the need for swift implementation of the agreement to prepare for the upcoming wet season and called on AGCOMS International to expedite delivery and distribution logistics.

The Country Director of AGCOMS International, Chijioke Okoli, explained that the $70 million procurement package includes training programmes for local technicians and ongoing technical support to maximize the utility of the equipment.

“The assembly plant will allow Nigerian youths to gain hands-on experience with the technology behind these tractors, ensuring sustainability and long-term use.

“The total procurement value is about 70 million USD, and that’s the value to get it down to the collection centre in Abuja and Lagos,” Okoli stated.