He stated this during a tripartite signing of a
Memorandum of Understanding (MOU) between Nigerian Agricultural Mechanization
& Equipment Leasing Company (NAMEL) and two other major private companies
in the tractor hiring services, namely Tractor Owners & Operators
Association of Nigeria (TOOAN) and Tractor Owners & Hiring Facilities
(TOHFAN) held recently, in Abuja.
Ogbeh who promised that the private sector would be
motivated to achieve the dream in stages added that the establishment of 2,500
Agricultural Equipment Hiring Enterprises (AEHEs) across all the 774 local
governments in the country would help to remove drudgery in land clearing
towards commercialization.
The minister pointed out that government could not
efficiently manage procurement, maintenance of tractors and other mechanization
equipment going by its antecedent, but that the private sector would be
encouraged to take over such responsibilities, while the government should face
the function of agricultural reform and proactive policies to galvanize
productivity at all the value chains.
While
responding to questions, Chief Ogbeh stressed that government would give
private sector support and loan capacity of maximum 5% single digit interest
through the Bank of Agriculture saying “there are many things government can
do, and there are many things government should not do. One of them is
government running tractor hiring and
servicing centers. We will give you support to be able to provide services to
farmers”
On the issue of high foreign exchange negatively
impacting on the cost of a unit tractor, he said the case would be tabled at
the National Executive Council (NEC) meeting towards ensuring a special aid
that would make tractor’s spare parts available at affordable prices.
He added that governments since 1986 had not been able
to properly manage our foreign exchange to a point of being able to checkmate
upward prices of goods.
The MOU signees all promised to fulfill their own part
of the agreement conditions that would ensure efficient management 10,000 units
of tractors and other compartments for planting, harvest and post-harvest
equipment towards achieving 2,500 Agricultural Equipment Hiring Enterprises (AEHE)
across the 77 local government between 2018 and 2023.
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