Federal Government Approves $70 Million Contract for 2,000 Tractors for Farmers
The Federal Government has signed a $70 million contract with AGCOMS International Trading Limited, a Nigerian sales dealer for John Deere, to supply 2,000 tractors to farmers as part of a national agricultural mechanisation programme.
The deal, which is being managed by the National Agricultural Development Fund (NADF), is part of the implementation of the 2023 Memorandum of Understanding (MoU) with agricultural equipment manufacturer John Deere. The agreement is aimed at advancing the government’s mechanisation agenda for the agricultural sector.
The procurement deal covers the supply of not only tractors but also associated equipment such as plows, harrows, ridges, and 100 combined harvesters, with the first batch expected to be delivered ahead of the upcoming wet planting season.
A significant aspect of the agreement is the establishment of an assembly plant near Nigerian ports, ensuring that the tractors are built locally, supporting the country’s manufacturing capacity.
This new contract follows the Federal Executive Council (FEC) decision in October 2024, which tasked NADF with overseeing the deployment of 10,000 tractors across Nigeria, in line with an MoU signed between the Federal Ministry of Agriculture and Food Security and John Deere. The plan is to supply these 10,000 tractors over five years, in annual batches of 2,000 tractors, starting in 2024.
However, over a year after the MoU was signed, no tractors have been delivered, raising concerns among stakeholders, including the House of Representatives, which recently called for an investigation into the delay.
Mohammed Abu Ibrahim, the Executive Secretary of NADF, emphasized that the new agreement aims to fast-track the delivery of the equipment, aligning with President Bola Tinubu’s strategy to diversify the economy and boost agricultural mechanisation.
At the contract signing ceremony in Abuja on Thursday, Ibrahim said, “Our goal is to assemble these tractors locally, which will create jobs and integrate the technology into Nigeria’s agricultural framework.” He added that a collaboration with the Nigerian Ports Authority will ensure the smooth importation and delivery of the equipment to various regions.
Senator Abubakar Kyari, Minister of Agriculture and Food Security, explained that the mechanisation programme is aimed at revitalising Nigeria’s agriculture sector by increasing farm productivity, expanding farmlands, and addressing the challenges posed by an aging farming population.
Kyari also noted that the programme is designed to attract younger people and women into agriculture by reducing the hardships of traditional farming methods. He urged AGCOMS International to expedite delivery and distribution to ensure the tractors are available for the upcoming wet season.
Chijioke Okoli, Country Director of AGCOMS International, shared that the $70 million procurement package includes training for local technicians and continuous technical support to maximize the effectiveness of the equipment. He also highlighted that the local assembly plant would offer Nigerian youth the opportunity to gain practical experience with the technology, ensuring the tractors’ sustainability.
“The total procurement value is about $70 million, which covers the cost of transporting the tractors to collection centers in Abuja and Lagos,” Okoli said.
