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🇳🇬 Nigeria /Economy & Trade

FG targets 1.2m farmers with 2,000 tractors to boost food production

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

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  • The Nigerian Federal Government plans to support over 1.2 million farmers with 2,000 tractors to boost food production during the current wet season.
  • Interventions include a Guaranteed Minimum Price for staple crops to prevent post-harvest losses and stabilize prices, alongside a ginger revival program aiming for significant export growth.
  • The Bank of Agriculture is shifting to a digital ecosystem, using BVN and NIN for farmer verification to ensure financial support reaches genuine producers.

Nigeria's Federal Government is launching a major initiative to bolster food production, targeting over 1.2 million farmers with 2,000 tractors during the current wet season. This program, spearheaded by the Bank of Agriculture (BOA), aligns with President Bola Tinubu's agenda to enhance food security, increase farmer incomes, and promote financial inclusion.

The wide-ranging initiatives reflect the Federal Government’s commitment to supporting farmers whose labour ensures Nigerians do not go hungry.

— Ayodele Sotinrin, Managing Director of the Bank of AgricultureHighlighting the government's dedication to supporting agricultural workers.

A key component is the introduction of a Guaranteed Minimum Price for staple crops like maize, rice, soybeans, and cassava. This mechanism aims to bridge the gap between production costs and market prices, preventing post-harvest losses by having the BOA purchase excess produce for storage in national silos. The government also plans a nationwide campaign to sensitize the public about these food stabilization efforts.

Mechanisation remains a major focus and Nigeria has a low tractor density of 0.27 per 100 square kilometres.

— Ayodele Sotinrin, Managing Director of the Bank of AgricultureExplaining the need for increased agricultural machinery.

Mechanization is a significant focus, addressing Nigeria's low tractor density of 0.27 per 100 square kilometers. The 2,000 tractors sourced from Belarus will be deployed to service providers capable of mechanizing at least 600 hectares each. Furthermore, a ginger revival program seeks to transform the industry from a $300 million sector to a $3 billion export powerhouse by 2028, utilizing tissue culture technology instead of traditional methods.

The programme will replace traditional replanting methods with tissue culture technology, with the goal of expanding the ginger industry from a $300 million sector to a $3 billion export powerhouse by 2028.

— Ayodele Sotinrin, Managing Director of the Bank of AgricultureDetailing the ambitious goals for the ginger revival program.

The BOA is also modernizing its approach by moving away from direct micro-credit to a digital ecosystem. Leveraging farmer aggregation companies and digital platforms, the bank will use BVN and NIN for rapid identity verification and account opening, ensuring that financial support directly benefits legitimate farmers rather than intermediaries.

The bank now leverages digital platforms and identity verification tools, including BVN and NIN, to open bank accounts for farmers within minutes, ensuring financial support reaches genuine producers rather than middlemen.

— Ayodele Sotinrin, Managing Director of the Bank of AgricultureDescribing the new digital approach to financial support for farmers.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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