The Bank of Agriculture (BOA) has commenced the distribution of 2,000 tractors to farmers across the country in a significant step towards boosting agricultural productivity and food security.
The initiative, which aligns with President Bola Tinubu’s Renewed Hope Agenda, introduces a Pay-As-You-Service (PAYS) repayment model designed to ensure sustainability and broad access for smallholder farmers.
The flag-off ceremony took place in the Kwali Area Council of the Federal Capital Territory, where the first set of tractors were handed over to mechanisation service providers.
Strategic Shift
Speaking at the event, the Managing Director of BOA, Mr. Ayodeji Sotinrin, described the scheme as a strategic shift from past intervention programs that failed due to poor maintenance and unsustainable financial structures.
“This is a promise kept by President Bola Tinubu. We are moving away from symbolic distribution to a model that guarantees accountability and long-term impact
“The Pay-As-You-Service scheme ties loan repayments directly to revenue generated from tractor services, shielding farmers from rigid monthly obligations and ensuring the fund is revolving.” Mr Sotinrin stated.
Mr Sotinrin highlighted that Nigeria’s mechanisation density remains critically low, with only about 13 tractors per 100 square kilometres of arable land—far below the global average.
He noted that with over 70 million hectares of arable land, over-reliance on manual tools, used by 95 per cent of farmers, hampers productivity and exacerbates post-harvest losses.
Under the new framework, 10 per cent of the tractors will be allocated to commercial agribusinesses capable of outright purchases to ensure quick capital recovery.
The remaining units will be deployed through partnerships with state and local governments to empower youth and women entrepreneurs as mechanisation service providers.
The BOA projects that the 2,000 tractors will cultivate at least 1.5 million hectares of land, directly reaching an estimated 1.2 to 1.5 million smallholder farmers.
To prevent a repeat of past failures where equipment was abandoned due to lack of maintenance, the BOA is establishing 40 mobile service stations and seven large-scale mechanisation service centres across the country.
These will be supported by digital monitoring systems to track tractor usage and maintenance in real-time.
The Minister of Agriculture and Food Security, Senator Abubakar Kyari, who was present at the event, hailed the rollout as the largest single agricultural mechanisation programme ever undertaken on the African continent.
He emphasised that the tractors are not for private ownership but are entrusted to service providers capable of covering an average of 600 hectares annually.
“This is a decisive shift from unstructured distribution to productivity-driven reform. Each tractor comes with two years of free service support, and we are deploying 36 mobile workshops and seven mega centres to institutionalise a maintenance culture,” Senator Kyari said.
He noted that over 10,000 applications were received for the first phase, signaling growing confidence in the government’s agricultural reforms.
The Minister of State for Agriculture and Food Security, who also spoke at the event, assured stakeholders of equitable implementation with a strong focus on gender inclusion, recognising the critical role women play in agricultural production.
President of Women in Mechanised Agriculture, Aisha Bako, lauded the initiative, describing the Pay-As-You-Service model as a practical solution that eliminates prohibitive upfront costs for small-scale operators.
Other beneficiaries who spoke with Voice of Nigeria pledged to adhere to the maintenance and repayment terms, expressing confidence that the scheme would expand cultivation, reduce post-harvest losses, and improve livelihoods in their communities.