NADF Takes Over Federal Gov’t, John Deere 2,000 Tractors’ Procurement Deal

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, according to the directive of President Bola Tinubu, would be spearheaded by the National Agricultural Development Fund (NADF) to implement the 2023 10,000 tractors Memorandum of Understanding (MoU) with the agricultural machinery 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 delivered before the wet planting season begins.

Abuja and Lagos State will serve as the collection centres with farmers expected to pay on instalments.

NADF executive secretary, Mohammed Abu Ibrahim, told journalists in Abuja during the signing of the contract that another critical component of the agreement includes the establishment of an assembly plant near Nigerian ports to ensure that the tractors are built locally.

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

The initial MoU which was signed 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 five years, in tranches of 2,000 units annually, beginning from 2024.

However, more than a year afterwards, no tractors have 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 Ibrahim, the new deal is to ensure the speedy delivery of the equipment in alignment with President Tinubu’s strategy to diversify the economy and improve agricultural mechanisation.

Speaking further during the contract signing ceremony involving the minister of Agriculture and Food Security, Abubakar Kyari, the NADF boss said, “The National Agricultural Development Fund has been mandated to implement one of the four mechanisation programmes of the federal government of Nigeria, led by President Bola Ahmed Tinubu, in his aspiration to see that Nigeria transits from a monolithic economy and see that agriculture becomes what it is.

“The one we’re implementing is the John Deere 2,000 tractors. 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 (NPA) to facilitate the importation and delivery of these tractors to various regions across the country.”

In his remarks, the minister noted that the programme is aimed at revitalising 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 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 maximise 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, and that’s the value to get it down to the collection centre in Abuja and Lagos,” Okoli said.