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Photo Credit: jumpthecurve.net
Photo Credit: jumpthecurve.net
  The Ministry of Agriculture and the Bank of Agriculture (BoA), have signed a N3.5 billion agreement to  encourage mechanised farming and boost food production in the country. The Minister of Agriculture, Akinwumi Adeshina and the Managing Director of BoA, Dr Mohammed Santuraki, signed the Memorandum of Understanding (MoU) to purchase 400 tractors for farmers. Akinwumi Adeshina said “The MoU will form the basis for establishing Agricultural Equipment Hiring Enterprises to be equipped with 400 units of tractors that all help to put up an additional 152,000 hectares of land under cultivation, expected to add 760,000 tons of food to our national output per annum. The financing will be done through public private Partnership (PPP) as BOA has undertaken to finance the interested Service provider operators. “The Ministry will provide adequate fund towards facilitating the financing of the enterprise, in partnership with the BOA and the private sector. In the refinancing window for the service providers operators, the Government is providing 35 percent of the loans; BOA, 35 percent; tractors vendors. 10 percent; Service providers operators 20 percent as equity for the take-off of the scheme’s hiring centres.”
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This article was first published on 28th May 2013

frederick

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