N138.61bn Nigeria’s Tractor Assembly Plant Deal Under Probe

. Reps Uncover 2000 Tractors, 100 Harvesters’ Racket

 

 

The House of Representatives has mandated its committee on agricultural production and services to investigate the non-delivery of 2000 units of tractors and 100 combined units of harvesters under the presidential food security initiative and hope agricultural mechanisation drive, despite the signing of a N3 billion agreement.

It also mandated the committee to investigate the N138.61 billion agreement signed by the Federal Government and the AFTRADE DMCC for the establishment of a tractor assembly plant in Nigeria.

The resolution followed the adoption of a motion at yesterday’s plenary, sponsored by the member representing Edu/Moro/Patigi federal constituency, Kwara State, Mr Saba Adam.

Moving the motion, Adam noted that the Federal Ministry of Agriculture and Food Security signed an agreement with John Deere Tractors to supply 2000 tractors implements and 100 combined harvesters annually, in line with the Renewed Hope target for increased food production and food security.

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He said: “The contract for a tractor assembly plant in Nigeria was agreed to cost $70.042m (N3bn), with actual equipment and delivery costs. The contract includes sales, after-sales services, spare parts, and training for mechanised service providers.

“The Federal Ministry of Agriculture and Food Security, pursuant to the Presidential Food Security Initiative, entered into another five-year agreement with AFTRADE DMCC for the establishment of a tractor assembly plant to produce 9,022 agricultural implements and 2,000 Belarus. tractors annually.

“This agreement was estimated to cost Nigeria about $684.19m and N138.61bn as actual equipment cost and delivery/assembly cost, respectively.”

According to the lawmaker, who is a member of All Progressives Congress, APC, “both agreements were laden with benefits to accrue to Nigeria if implemented, including increased agricultural production, technology transfer, and reduction of the foreign currency expenditure on the purchase of ready-made equipment due to the growth of local production.”

He lamented that a year after the agreements were signed by the National Agricultural Development Fund and the federal ministry of agriculture and food security, “no single tractor or implement has been received in Nigeria, despite the huge public funds involved in these transactions.”

He lamented further that the non-delivery of these tractors and implements was a setback to the Renewed Hope Agenda in agricultural mechanisation, adding that the development posed a challenge to Nigeria’s food sufficiency ambition, as two farming seasons had been lost since the signing of the agreements.

The motion enjoyed the overwhelming support of lawmakers, as the House presided over by Speaker Tajudeen Abbas mandated the committee on agricultural production and services to investigate.

the non-delivery of the 2,000 tractors, implements, and 100 combined harvesters within the stipulated period.

It also urged the committee to inquire about the status of the tractor assembly plants contemplated in the agreements and investigate the procurement and distribution of farm implements within the purview of the federal department of agriculture in the federal ministry of agriculture and food security and report within four weeks for further legislative action.

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