Foreign Firms To Set
Up Tractor Plants In Nigeria
Aloysius Umalo, Lafia
Discussions
have opened between Nigeria and manufacturers from China, Iran
and Russia to provide eighteen thousand units of tractors within
three years to enhance agricultural production.
China, Iran and Russia will also establish tractors’ assembly
plants in Nigeria at later years.
Nigeria’s Minister of Agriculture and Water Resources, Dr.
Sayyadi Ruma, said on Thursday, in Lafia, Nasarawa state, at the
launching of a Community Cooperative Tractor Hiring Service, a
project executed under a Public-Private-Partnership (PPP)
arrangement.
About one hundred tractors units procured by the Nasarawa state
government were launched under the Private Sector initiative.
The initiative is being launched in all states in Nigeria, as
part of a concerted effort to improve agriculture production.
Contracts terms phased
The minister said that the assembly plants would be established
in the next three years and would emerge after the initial order
of 1000 tractors from the countries by Nigeria.
He said that the tractors’ manufacturers would establish
assembly plants to assemble semi knocked-down parts initially,
while the plants would later assemble completely knocked-down
parts after five years of operation in Nigeria.
Dr. Sayyadi said that discussions had reached the final stage
with the three countries to produce 18,000 units of
tractors in the next three years so as to meet the farm
requirements of Nigeria.
’’This arrangement is expected to bring down the unit cost of
tractors and implements, thereby enhancing their affordability,
while facilitating effective farm operations,’’ the minister
said.
Ruma commended some state governments, particularly Abia and the
FCT for their efforts toward the scheme’s implementation.
FCT fulfilling agreement terms
At the launching of the scheme in the Federal Capital Territory,
Abuja, Chief Chuka Odom, the FCT Minister of State, said that
the FCT Administration had paid its 15 per-cent
counterpart contribution of N71.2 million for the supply
of 64 tractors with accompanying implements.
He said that the tractors would be sold to farmers’ groups in
line with the Federal Government’s mechanisation policy.
A new scheme
The tractor scheme involves the provision of about 10,000
units of tractors and implements with a projected 13 per-cent
annual increase under the PPP arrangement.
Under the scheme, the Nigerian Government would provide 25
per cent subsidy to the operators, while state governments would
provide 15 per cent subsidy.
The scheme’s beneficiaries, who are mainly cooperative groups,
would make down payments required by the operators and pay the
balance of the subsidized costs of the tractors within a
three-year period.
With additional reports from NAN/Yinka
