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Experts have called for private sector investments in Agricultural mechanisation, saying that it has the untapped potential that could yield over N1.7 trillion annual return to the Nigeria economy.
Speaking at the Agricultural mechanisation investment conference organised by Propcom Mai-karfi in Abuja, experts noted that Nigeria requires over 1 million tractors to meet demands of farmers and realise huge potential.
Godson Ohuruogu, Senior program manager, Propcom Mai-Karfi, said that the conference aim to scale up access and investment in mechanization to meet the rising demand of mechanization in Nigeria.
“We want investors, vendors, mechanisation service providers to look at the various opportunities in mechanisation. The government can only do an amount so we are saying there a great need for the private sector to come into the system”.
He said that the mechanization market which holds about N1.7 trillion annual returns has been left untapped adding that the government is yet to appreciate the scope of the mechanization gap that exist across the nation.
” We have identified the existing constraints in Nigeria mechanisation to include capital intensiveness and limited access to finance, as well as insufficient number of active tractors available for use”.
Ogheneovo Ugbebor, deputy team lead, Propcom Mai-Karfi said that promoting mechanisation among small holder farmers is critical to ensuring food security and sustainable growth in the agriculture sector.
She stressed that the agricultural space in Nigeria has remained under developed as only 34 million out of 84 million hectares of arable land has been cultivated. “In Nigeria, most part of our arable lands are being cultivated through the traditional farming method which deals with the use of hoes and cutlasses”.
She said “A ready market for mechanisation services exist in Nigeria as an estimated 77 million framers presents a huge untapped market for mechanisation services in Nigeria”.
“Intensification of farming systems, rapid urbanization, growth in medium sized farms and the emergence of private hiring service businesses in agricultural machinery are the factors driving demand for mechanization services”.
Ugbebor further said that there is need for the small land holder policy to be reviewed as it has constrained the ability of farmers to own large amount of land.
Danladi Garba, chairman, Tractor owners and hiring facilities association of Nigeria (TOHFAN), in his remark said that the mechanisation offers a huge investment opportunities for investors as the tractor market in Nigeria is experiencing growth driven by the increasing demand for mechanised farming.
Garba speaking further said that under utilisation of lands as well as lack of government’s incentive for agricultural mechanisation has been a major challenge to mechanisation in Nigeria.
“Our work in Nigeria is to take farmers away from small scale and traditional farming system to a larger scale, we currently have 552 tractors operating in 31 states but we are seeking to increase our portfolio to 1000 tractors in 2 years”.
Cynthia Egboboh, Abuja
