The federal government on Tuesday partnered with the Nigeria agricultural mechanization and equipment leasing company (NAMEL), Tractor Owners hiring facilities association of Nigeria (TOHFAN) and Tractor Owners and operators association of Nigeria (TOOAN) to establish 2500 agricultural equipment hiring Enterprises across all the 774local government in Nigeria.
Audu Ogbeh, Minister of agriculture and rural development at the signing of the memorandum of agreement said that the partnership is aimed at promoting a sustainable private sector driven agricultural mechanization program.
Ogbeh, speaking further said that the project is a step in the right direction as it also aims to create a better environment and stabilize the rural communities for improved agricultural activities.
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He said “TOOAN and TOOAN has over the complimented the government’s effort I managing the tractor sector, we therefore pledge continuous support to these organizations to promote improved agricultural yields”.
The minister, also said that efforts are being made to address the current exchange rates and reduce the interest rate for agricultural activities to the barest minimum.
Elesa Bitrus Yakubu, chairman, TOOAN, in his remark said that the project aims at improving on the agricultural capacity of the nation to meet the demands of the rising population of Nigeria.
He further appealed to the government for more support stressing that the organisation over the years has been challenged by high cost of equipment, high interest rate for bank loans as well as high custom duties imposed on imported equipment. “The government should give more support to the local mechanizatio providers, there is need for more stabilized exchanged rate and a workable credit risk scheme to facilitate our activities”, he added.
Ahmed Adekunle, chief executive, NAMEL, said that the collaboration seeks to ensure available, accessible, affordable and sustainable mechanization through financial and technical re-engineering.
Adekunle, speaking further said that the project has been structured to deploy high quality mechanized equipment, finance expertise, mechanization extension and capacity building service using the equipment leasing model.
“The project’s short term deliverables include: to implement a multi stakeholder partnership program for the deployment, coordination and management of 10000 units of tractors and various planting, harvest and post harvest equipment required to set up 2500 agricultural equipment hiring enterprise across the 774 local government between 2018-2023, he said.
“The projects also target opening of contiguous agricultural lands for the purpose of promoting commercially driven agriculture to create jobs for the unemployed whole creating a pool of skilled manpower and ensure local industrialization for the mechanization sub-sector”, he added.
Cynthia Egboboh, Abuja.
