The Nigerian Federal Government recently launched an agricultural mechanization program, deploying 2000 tractors and establishing a 50 billion Naira seed fund, aimed at deepening agricultural financing and promoting mechanized farming and food production nationwide. At the launch ceremony held in Abuja, the Minister of Agriculture and Food Security, Abubakar Kyari, stated that this initiative represents a significant advancement in the government's agricultural policy.
Kyari said, "The tractors will be deployed in phases under the 'National Agricultural Mechanization Scheme for the Renewed Hope Agenda,' starting with 600 units, followed by 750 and then 650, to achieve the total target of 2000. The program also encompasses over 9,000 units of precision agricultural implements." He revealed that over 100,000 applications have been received for the first phase, demonstrating widespread interest in the agricultural financing scheme.
According to the arrangement, these tractors will not be directly allocated to private owners but will be assigned to mechanization service providers through a lease-to-own mechanism. Each tractor is expected to service approximately 600 hectares of land annually, with an overall target exceeding 1.5 million hectares, potentially benefiting around 1.2 million farmers each year.
Kyari added that the Bank of Agriculture will collaborate with Heifer International to implement a structured financing model, including leasing and installment payments, to ensure the project's sustainability and accountability. He also mentioned that each tractor will come with two years of free service support. Additionally, plans are in place to deploy 36 mobile service trucks, establish seven major mechanization service centers across the country, and set up a large-scale tractor assembly plant with an annual production capacity of 2000 to 4000 units.
As part of a broader financing framework, Kyari announced a partnership with the Bank of Industry to establish a 50 billion Naira catalytic seed fund to promote agro-industrial investment. Furthermore, the government has mobilized 250 billion Naira, planning to provide financing for 1 million smallholder farmers during the 2026 rainy season, supporting an average of one hectare of land per farmer. The Minister emphasized that this agricultural financing program, which combines mechanization, financial support, and policy guidance, aims to enhance food security, create employment opportunities, and improve economic resilience.
