In a significant move towards enhancing food production and ensuring food security, the Federal Government of Nigeria, through the Ministry of Agriculture and Food Security, has entered into a Memorandum of Understanding (MOU) with the American Agricultural Machinery manufacturer, John Deere.
This strategic partnership aims to establish a tractor plant in Nigeria, reflecting the government’s commitment to modernizing agriculture and promoting self-sufficiency in food production.
The MOU outlines plans for the in-country production of 2,000 tractors annually for the next five years.
Speaking at the official signing ceremony, the Minister of Agriculture and Food Security, Sen. Abubakar Kyari clarified the nature of the partnership, emphasising that it is designed for farmers’ benefit, not for the government’s direct involvement. He stated, “The original arrangement is 2,000 tractors for five years, but it depends on how much the farmers are willing to take. This is purely a partnership for the offtake for the farmers, not the government. What the government is supposed to do is to have an environment that is very conducive for John Deere to sell the tractors to the farmers.”
Kyari highlighted the multifaceted benefits of this initiative, including increased food production, employment opportunities and advancement in the nation’s food and nutrition security. He underscored the goal of promoting year-round farming and stressed the importance of evaluating existing cooperatives to identify those in need of support for tractor accessibility. Additionally, he emphasised the necessity of pinpointing crops most suitable for mechanization.
“We will make sure that the ease of doing business is achieved in terms of creating access to finance so that they can purchase the tractors. Initially, the payback period was four years and it was too short for the farmers. Let it be a bit longer for five to six years, and with the prospects and potential of agriculture we have seen, farmers can pay within two and a half years. For the smallholder farmers, five or six years is adequate,” Kyari explained.
In response to the collaboration, the vice-president of John Deere, Jason Braintley expressed delight and noted that the agreement signifies a shared vision among the parties involved to scale up proven practices in Nigeria, making mechanisation more accessible for farmers. He emphasised the importance of matching the right implements with the right tractor in specific areas, considering the diverse conditions across the country.
Braintley revealed that the assembly plant is currently in the planning stage, with Tata Nigeria taking the lead. He promised forthcoming announcements and information regarding this development. He also highlighted the joint effort to identify effective financing solutions for customers to purchase tractors, acknowledging the critical role of finance in supporting individual contractors, small contractors, and SMEs.
The collaboration between the Federal Ministry of Agriculture, John Deere and Tata Nigeria aims to revolutionise the agricultural landscape in Nigeria, ensuring that farmers have access to modern and efficient machinery, ultimately boosting food production and strengthening the nation’s food security.
