Platform for African – European Partnership in Agricultural Research for Development

Friday, February 14, 2014

The mechanisation of African (Nigerian) agriculture

13 February 2014. Nigeria.  The Federal Government of Nigeria has approved N3.6 billion to support the establishment of Agricultural Equipment Hiring Enterprise (AEHE) nationwide. released by the Federal Ministry of Agriculture and Rural Development
  1. The funds in the first phase will make available 400 units of tractors, 500 power tillers, and various harvest and post harvest equipment to set up 80 centres.
  2. The second phase would achieve similar results like the first but that the third phase would acquire 250 tractors through the partnership programme.
  3. At the end of the third phase, the intervention scheme would bring in 1050 units of tractors, 1500 power tillers and 2400 units of various harvest and post-equipment such as rice reapers, grain threshers and cassava peelers.
About 210 units of the equipment will be located in demand driven locations nationwide. The financing of the agricultural equipment hiring centers will be done through public-private partnerships, as the ministry would provide N3.6 billion towards facilitating financing of these centers, in partnership with the Bank of Agriculture and the private sector, adding that government would provide 35 per cent of the loans, Bank of Agriculture would provide 35 per cent, while private sector operators will provide 30 per cent as equity contributions. The the Growth Enhancement Support (GES) would be expanded beyond seeds and fertilizers, to provide mechanization subsidy to assist Nigerian farmers to access mechanization services from the Agricultural Equipment Hiring Enterprises.

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