The Federal Government has officially flagged off the distribution of 2,000 tractors to farmers under the Renewable National Agricultural Mechanization Programme (NAM), in a landmark step aimed at boosting domestic food production and mechanizing Nigeria’s agricultural sector.
Speaking at the ceremony on Monday, Managing Director and Chief Executive Officer of the Bank of Agriculture (BOA), Ayo Sotinrin, described the initiative as a historic milestone for the country’s agricultural transformation.
He explained that the program reflects President Bola Tinubu’s recognition of agriculture as a national priority and is designed for bold and deliberate action.
Sotinrin highlighted Nigeria’s mechanization deficit, noting that the country currently has approximately 13 tractors per 100 square kilometers of arable land, compared with a global average of 200.
He said, “Let me start by saying today marks a historic milestone for Nigeria’s agricultural transformation journey. We are gathered here to witness the first-ever anniversary of the Renewable National Agricultural Mechanization Program. This program is the first of its kind in Nigerian history and the largest in Africa
“Nigeria stands at a critical juncture, with over 230 million people and a population projected to double by 2050. We face an urgent imperative to dramatically increase our food production capacity,” he said.
“While we have over 70 million hectares of arable land, only 34 million hectares are under cultivation. And 95% of our farmers, who produce almost 90% of our food, still rely primarily on manual labor. This mechanization deficit is not just a number; it translates directly into low productivity, post-harvest losses, missed planting windows, and ultimately food insecurity for millions of Nigerians.”
He emphasized that the NAM is not just about distributing tractors but creating a sustainable mechanization ecosystem.
“For too long, tractor programs have followed a predictable pattern. Tractors are procured, distributed, and within a few years, they sit idle, broken down, and underutilized. Capital is expended in hundreds of millions of dollars, but not recovered. Assets depreciate without generating returns. The Renewed Hope National Agricultural Mechanization Program is built on a different foundation.”
The MD explained that the program operates through a revolving system, where every naira invested is recovered, reinvested, and multiplied to expand access to mechanization services.
“To achieve sustainability, we have established very rigorous qualification criteria—not to disenfranchise mechanization service providers, but to safeguard public investment and ensure participant success.
“Every applicant must demonstrate the ability to service a minimum of 600 hectares per year, covering operational costs, loan repayments, and generating sustainable income.”
Sotinrin outlined the three financial models under the program.
The first, according to him, targets agribusinesses and commercial farmers, representing 10 per cent of the fleet, allowing for immediate recovery and reinvestment of funds.
The second, the largest, is a partnership with state and local governments to empower youth and women entrepreneurs through mechanization, deploying 1,200 tractors via qualified partners, with repayment tied to service-generated revenue.
The third model engages established mechanization service providers with proven track records to deliver services at scale.
“Each tractor under the program must be productive and integrated into a functioning service ecosystem. A tractor is only as good as the ecosystem it supports,” Sotinrin said.
He noted the establishment of 40 mobile service stations and seven large-scale mechanization service centers across the six geopolitical zones, providing workshops, spare parts, training, and digital monitoring systems to ensure sustainability.
According to him, every tractor is equipped with IoT tracking devices for real-time monitoring, ensuring assets remain productive.
“Heifer International, through AFI Nigeria, is providing a $7 million catalytic partnership during the first two years. This is not a grant—it is a recoverable investment. By year five, the NAM program will operate on internally generated capital, demonstrating that public investment in mechanization can be impactful and sustainable,” Sotinrin added.
Minister of Agriculture and Food Security, Abubakar Kyari, said strict monitoring would ensure proper utilization of the tractors.
Also, he explained that through the Renewable National Agricultural Mechanization Programme, the government had deployed heavy capacity tractors and over 9,000 precision implements under a national framework.
“This first tranche of 600 tractors marks the beginning of a phased acceleration. This will be followed by 750 tractors and 650 tractors culminating in a nationwide force of 2,000 mechanization assets.
“It is imperative to inform you that over 100,000 applications were received for this first phase alone.
“And I think that beats that of the National Agricultural Seed Council by 20 fold. That is not merely an interest, that is confidence in leadership.
“Today we proved that renewed hope is not just a slogan, it is a structured execution.
“In line with Mr. President’s vision that scale must drive impact, these factors are not distributed for private ownership.
“They are entrusted to mechanization service providers where each factor, with the capacity to service approximately 600 hectares per year, becomes not just a machine but a multiplier of productivity,” he added.
Also, the Director General of the National Agricultural Seeds Council, Fatuhu Mohammed Buhari, said his Council has received additional 2,000 applications.
“I have more than 2,000 applications in my office, thinking that City Council is responsible for this mechanization.
“So, today I am very happy that this programme has come to see light, and Nigerians can have hope, and we are going to see a lot of progress in food security,” he said.
He added that gape should be bridged, adding that young farmers should be encouraged.
“I was advising my brother, Ayo, I was telling him, why don’t you share these 2,000 tractors to 774 local governments?
“Virtually each local government will get 12, and have a PPA with the local government. Then he told me the blueprint.
“I was amazed when I saw it. My idea was something else, but the federal government has a better one. I wish us all the best, and congratulations, my brother,” he added.
Discover more from Trace News Magazine
Subscribe to get the latest posts sent to your email.