The Bank of Agriculture (BOA) and other stakeholders in Nigeria have lauded the distribution of 2,000 tractors to mechanise farmers to boost food security across the country.
The Managing Director of the BOA, Mr Ayodeji Sotinrin, said the “Scheme is to expand access to mechanised farming services to farmers.
“The scheme is a promise kept by Nigeria’s President Bola Tinubu, which is in line with the President’s Renew Hope Agenda.”
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The Managing Director, who made the statement when distributing the farm implement, said, “It is a Pay-As-You-Service repayment scheme to ensure sustainability”.
During the presentation of the tractors to mechanise farmers in the Kwali Area Council of Abuja, Nigeria’s capital, Mr Sotinrin also said that “The initiative was executed in collaboration with the Federal Ministry of Agriculture and Food Security.”
He noted that this “marks a strategic shift from past tractor distribution programmes that failed due to poor maintenance, weak accountability and unsustainable financing structures.”
According to him, Nigeria’s low mechanisation density remains a major constraint to agricultural productivity, noting that the country currently records about 13 tractors per 100 square kilometres of arable land, far below the global average.
“With over 70 million hectares of arable land and only 34 million hectares currently cultivated, we cannot continue to rely on manual labour if we are serious about food security
“Ninety-five per cent of our farmers still depend on rudimentary tools, and that reality directly affects productivity, post-harvest losses and income levels,” the Managing Director stated.
Sotinrin further explained that the newly introduced Pay-As-You-Service model ties loan repayments directly to revenue generated from tractor services, shielding beneficiaries from rigid monthly repayment obligations.
“We are not expecting participants to pay every month regardless of income. Repayment is linked to service delivery. As they provide mechanisation services and earn income, they repay.
“This protects them from cash flow stress while ensuring accountability.”
The BOA chief stressed that the programme is structured as a revolving fund, in which all investments will be recovered and reinvested to expand access to mechanisation without relying on continuous donor support or annual budgetary injections.
“Under the framework, 10 per cent of the tractors will go to agribusinesses and commercial operators capable of outright or short-term structured payments to enable quick capital recovery, while the larger share will be deployed through partnerships with state and local governments to empower youth and women entrepreneurs as mechanisation service providers.
“BOA projects that the 2,000 tractors will service at least 1.5 million hectares and reach between 1.2 and 1.5 million smallholder farmers, a significant departure from previous interventions that concentrated assets in the hands of a few operators.
“To prevent equipment abandonment, the bank is establishing 40 mobile service stations and seven large-scale mechanisation service centres across the country, alongside digital monitoring systems that track tractor usage, maintenance schedules and performance in real time,” Sotinrin disclosed.
In his remarks, the Minister of Agriculture and Food Security, Mr Abubakar Kyari, described the rollout as “the largest single agricultural mechanisation programme ever undertaken on the African continent”, adding that it represents a decisive shift from symbolic distribution to structured productivity-driven reform.
According to him, the tractors are not for private ownership but are entrusted to mechanisation service providers capable of servicing an average of 600 hectares annually, thereby multiplying impact across farming communities.
Senator Kyari noted that more than 10,000 applications were received for the first phase alone, describing the figure as a sign of growing confidence in the Nigerian Government’s agricultural reforms under President Tinubu’s Renewed Hope Agenda.
He further disclosed that each tractor comes with two years of free service support, while 36 mobile workshops and seven mega mechanisation centres are being deployed nationwide to institutionalise maintenance culture and ensure long-term sustainability.
Also speaking, the Minister of State for Agriculture and Food Security, said “The programme is designed to address Nigeria’s low mechanisation density and raise productivity across the value chain”.
He assured stakeholders that the initiative would be implemented equitably, with strong gender inclusion, noting that women account for a significant share of agricultural production and would play a central role in the mechanisation drive.
The President of Women in Mechanised Agriculture, Aisha Yakubu Bako, lauded the initiative, describing the Pay-As-You-Service model as a practical solution that allows small operators to access tractors without crippling upfront costs.
Other beneficiaries pledged to adhere strictly to maintenance and repayment terms, expressing optimism that the scheme would expand cultivation, reduce post-harvest losses and improve incomes in their respective communities.
The rollout signals what officials described as a decisive move towards structured, accountable and productivity-driven mechanisation capable of transforming Nigeria’s agricultural landscape.