FG unveils National Agric Mechanisation Policy, targets 4,000-capacity tractor plant

The Federal Government of Nigeria has introduced the National Agricultural Mechanisation Policy and the National Agricultural Mechanisation Investment Strategy to foster sustainable mechanisation, encourage private investment, and enhance productivity within the agricultural sector. During a high-level national policy dialogue on agricultural mechanisation in Abuja, Minister of Agriculture and Food Security, Senator Abubakar Kyari, unveiled these policy documents.

He emphasized that the policy aims to transition agricultural mechanisation from a government procurement-driven model to a sustainable investment-based system capable of attracting capital, technology, and entrepreneurship.

Kyari highlighted food security as a critical factor for Nigeria's national sovereignty, economic resilience, and stability, noting that President Bola Tinubu's Renewed Hope Agenda has positioned agriculture as a key driver of productivity, prosperity, and economic transformation. The minister explained that mechanisation encompasses various stages of agricultural production, from land preparation and planting to harvesting, processing, storage, logistics, and transportation.

He unveiled plans to establish a 'Mechanisation-as-a-Service' economy, which would enable farmers to access agricultural technology as needed.

Under the Renewed Hope National Agricultural Mechanisation Programme (RH-NAMP), the government has begun procuring and deploying 2,000 tractors along with over 9,000 assorted implements and spare parts. The investment strategy outlines the establishment of a mega tractor assembly plant with the capacity to produce between 2,000 and 4,000 tractors annually.

This facility aims to reduce Nigeria's dependency on imported agricultural machinery, bolster domestic industrial capacity, and generate employment opportunities. Kyari appealed to young people and women to actively engage in the emerging mechanisation economy, viewing agriculture as a burgeoning opportunity for entrepreneurship, technology, and wealth creation.

Borno State Governor Babagana Zulum also addressed the policy unveiling, stressing that agricultural mechanisation should extend beyond machinery acquisition. He stressed that a comprehensive approach to mechanisation was necessary. Meanwhile, the government's Special Agro-Industrial Processing Zones (SAPZ) program, designed to attract private-sector capital, increase exports, enhance food security, and promote value addition in agricultural supply chains, has been projected to generate a 30.85% internal rate of return.

According to Dr. Kabir Yusuf, the National Programme Coordinator of SAPZ, the program aims to address Nigeria's annual food import bill of over $10 billion and agro-export earnings of less than $400 million. Yusuf also pointed out the need to improve domestic agricultural production, processing, logistics, and market access due to significant post-harvest losses, estimated at 30% to 60% of farm produce.

Earlier this year, the government approved a N250 billion facility to provide financing to smallholder farmers at a single-digit interest rate, as part of broader efforts to strengthen agricultural financing and insurance.