Reps probe N141bn tractor deal over non-delivery of equipment

By Christiana Ekpa

The House of Representatives on Tuesday mandated its Committee on Agricultural Production and Services to investigate the non-delivery of 2,000 and 100 units of tractors and combined harvesters respectively under the Presidential Food Security Initiative and Hope Agricultural Mechanisation Drive despite the signing of a N3bn agreement.
The House equally mandated the Committee to investigate the N138.61bn agreement signed by the Federal Government and the AFTRADE DMCC for the establishment of a tractor assembly plant in Nigeria.
The House resolutions followed the adoption of a motion at plenary sponsored by the member representing Edu/Moro/Patigi Federal Constituency, Kwara State, Mr Saba Adam.
Peoples Daily reported that President Bola Tinubu had declared a state of emergency on food security and identified agricultural mechanization as a key component of boosting food production nationwide shortly after he assumed office
President Tinubu’s initiative was informed by the continuous food inflation in the country resulting in hunger across the country.
Support 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.
“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, “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 further lamented that the non-delivery of these tractors and implements is a setback to the Renewed Hope Agenda in Agricultural mechanisation, adding that the development “poses a challenge to Nigeria’s food sufficiency ambition, as two farming seasons have been lost since the signing of the agreements.”
The motion was overwhelming support of the lawmakers and 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.