We will make mechanization, tractor hiring work- Agric. Minister

·       NAMEL signs MOU with TOHFAN, TOOAN

event session

The Minister of Agriculture and Rural Development, Chief AuduOgbeh has said that government was determined to ensure efficient working of mechanization and availability of tractors for hiring in rural areas so as to remove drudgery in  farming.

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.