FG, Kastina to spend N1.6bn on 225 tractors procurement

By Emma Ujah, Abuja Bureau Chief

abuja—The Federal and Kastina State governments are to spend N1.6 billion to purchase 225 tractors for agriculture mechanization in the state.
The scheme is to boost agricultural production, stimulate inclusive growth, job creation in the sector, according to the Nigeria Incentive Based Risk Sharing for Agricultural Lending, NIRSAL, Managing Director, Mr. Aliyu Abbati Abdulhameed, in Abuja, yesterday.

He said the agricultural mechanization financing program between the two tiers of government represented the beginning of better results in agricultural outputs.
“I am indeed very delighted to see the take-off of this project. This is again practical proof of the deployment of NIRSAL’s strategic mechanization finance framework which is designed to facilitate financing for the purchase of expensive farming equipment for lease to farmers at affordable rates so as to deepen commercial agriculture.

“This is in line with the Buhari government’s policy focus to put agriculture in the driving seat of the Nigerian economy,” the NIRSAL boss said of the scheme which was launched on July 20, in Kastina,’’ he said.

He commended the Katsina State Government for providing the policy support, Tractor Owners Association of Nigeria (TOAN) for organizing themselves as a professional body and Access Bank for their willingness to provide the financing.

Mr. Abdulhameed further stated that NIRSAL’s mandate as a policy tool in the hand of the government was to boost agricultural productivity and help government achieve its objective of self-sufficiency in food production.

, job creation and economic diversification by increasing commercial bank lending to the sector.

Signatories to the partnership included Mahindra Tractor Manufacturing Company, an international farm equipment manufacture from India; TOOAN; Springfield Agro, a trail blazer in the field of agro input distribution; and Access Bank.

Under the terms of the partnership, NIRSAL is to provide 75% bank guarantee for N1.6billion to be provided by Access Bank for the purchase of 225 tractors for lease to farmers at affordable rates.

Project would increase the tractor density in Katsina state by 1,000 addition tractors in the nearest future.
It would equally lower per hectare cost of land preparation, as well as, increase food production and incomes for smallholder and medium to large scale agricultural farmers in the state.

The governor of Katsina State, Alhaji Aminu Masari, said,   “This project represents a key milestone in our government’s plan to increase mechanized farming in Katsina by at least 50%.
“Our goal is for a start to provide at least one tractor for each of the 361 wards in the state. We are starting with 225 for now, but this will be scaled up pretty soon”.

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