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The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), along with its technical partner on agricultural mechanisation – Machines and Equipment Corporation Africa (MECA) has signed an agreement with the World Bank’s FADAMA III-AF programme to guarantee mechanisation of agricultural value chain in Nigeria.
Following the agreement signed on Monday in Abuja, FADAMA III-AF has entrusted its Agricultural Infrastructure, which includes mechanisation equipment, irrigation systems, and storage facilities in the hands of NIRSAL and MECA, through their joint mechanisation programme- the NIRSAL Comprehensive Agricultural Mechanisation Program (NCAMP).
NCAMP, a holistic mechanisation programme designed to address the low agricultural mechanisation was launched by NIRSAL in 2017 to enable it provide up to 75 percent guarantee for banks to release the total amount required to service and repair about 10,000 tractors annually for the next ten years in the country.
The project initiators hope that the project, if well implemented, could catalyse up to N1 trillion agriculture contribution to the nation’s annual GDP.
Speaking at the signing ceremony, Aliyu Abdulhameed, Managing Director/CEO of NIRSAL said FADAMA’s recognition of NIRSAL as a capable partner that would continue with the developmental activities FADAMA was commendable and raised the hope that the project would succeed.
NIRSAL is concerned that there are just approximately 6.5 tractors for every 100 square kilometres of arable land in Nigeria as against the global average of 200 tractors for every 100 square kilometres and is even more worried that most of the tractors which have gone bad are not being repaired despite the fact that the country’s need for mechanised farming.
“In financial terms, repairing 55,000 broken down tractors will cost Nigeria only N30 billion. Compare that with having to buy 55,000 new tractors which will cost Nigeria about N660 billion which is equivalent … Read More...