The Federal Government, at the weekend, met with some state governors and a Chinese company, YTO China-Africa Machinery Corporation (CAMACO), to fine tune the implementation of the $4.5 billion agriculture infrastructure loan agreement with the People’s Republic of China.
The Chinese Government had, during President Muhammadu Buhari’s visit to China last year, promised to support agriculture in Nigeria essentially with machineryincluding tractors and irrigation infrastructure.
Chairman of Governors’ Forum, Alhaji Abdulaziz Yari of Zamfara State, Alhaji Badaru Abubakar (Jigawa), Atiku Bagudu of Kebbi and Chief David Umahi (Ebonyi) with representative of Governor Abiola Ajimobi of Oyo State attended the meeting.
Nigerian government is to make available $4.5 billion for the machines, the payment was shared among states and Federal government so that each state will have their own share and request for equipment worth that amount.
The sharing formula is in three phases, the first phase is $1.5 billion, the second phase is $2 billion and the third phase is $1 billion. The governors harped on the quality of the equipment, adaptability to Nigerian weather and technical maintenance among other details.
Umahi warned against low quality equipment and asked for detailed specification of what would be supplied to avoid bringing in machinery that may not be suitable for the country’s hot weather, while the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, said the federal government would not accept any equipment of low quality.
Ogbeh who urged the Chinese company to also work out how it would firstly assemble in Nigeria; and eventually manufacture some of its components locally, said the federal government would not just take loans without designing means of repayment.
“We are negotiating the interest rate, telling them to produce here when oursteel mill comes on stream. We are harping on specification. We are also discussing how to pay back the loan through export of agriculture produce,” he said.
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