States, FCT to Benefit from NIRSAL’s Tractor Initiative

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has signed an agricultural mechanisation management contract with the National Agency for Science and Engineering Infrastructure (NASENI) and Machine and Equipment Consortium Africa (MECA) to fix an estimated 50,000 tractors grounded across the country.

The initiative will cover the entire 36 states of the federation and Abuja, with the states expected to indicate interest to benefit from the scheme at no cost to them.

The deal will see NIRSAL provide 75 per cent credit guarantee to enable NASENI and MECA repair 10,000 grounded tractors across the country annually, in a bid to boost agriculture value chain nationwide.

NIRSAL’s Managing Director, Aliyu Abbati Abdulhameed, who spoke at a stakeholders concept forum and press conference in Abuja, said the deal is a tractorisation project in which 10,000 abandoned tractors would be repaired annually.

Abdulhameed said the partnership would guarantee maintenance for and other agricultural equipment for states and local governments with about N120 billion.

Describing the project as one that would leapfrog the nation’s agricultural sector from the 19th to the 21st century, he stated that it represents a giant leap for the mechanisation of agricultural value chain in Nigeria.

Giving an insight into the project, he said, “it speaks for the primary production mechanisation particularly tractorisation and the density of tractor services in Nigeria agricultural primary production space.”

“For an average price of (let’s say) N12 million naira (the cost of a tractor), that will amount to about N120 billion worth of equipment that needs to be serviced,” he said.

The project represents a giant leap for the mechanisation of agriculture in Nigeria, to improve tractorisation and density of tractor services in Nigeria’s agricultural primary production space,” he said.

NIRSAL is providing 75 per cent guarantee to the total amount that is required to be able to service 10,000 units of tractors a year for the next 10 years.

“At an average price of N12 million per tractor, that would be equivalent to N120 billion worth of equipment that needs to be serviced,” he said