Reps to probe $684m, N139bn agricultural mechanisation contract

The House of Representatives on Tuesday unveiled plans to investigate the contract agreement worth $684,190,433 and N138,613,486,965 agricultural mechanisation awarded by the present administration since 2023.

The resolution was passed sequel to the adoption of a motion on the ‘Non-delivery of the 2,006 units of Tractors and 100 units of combined Harvesters under the Presidential Food Security Initiative and Renew Hope Agricultural Mechanization Drive, sponsored by Hon. Saba Ahmed Adani.

According to him, President Bola Tinubu shortly after his inauguration into office on Thursday, July 13, 2023, declared a state of emergency on food security, and a major component put forward to boost food production was massive agricultural mechanization across the country.

“The House also notes that this emergency declaration stemmed from the continuous food inflation in the country resulting in hunger and starvation of Nigerians. This ugly trend was frowned at by Mr President, and as part of the Renewed Hope agenda of his administration, he showed great determination to revolutionize food production in Nigeria.

“The House is aware that the Federal Ministry of Agriculture and Food Security has signed an agreement with John Deere Tractors to supply 2,000 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 $70,041,733.80 and N2,981,739,134.30, respectively, with actual equipment and delivery costs, the contract includes sales, after-sales services, spare parts, and training for mechanized service providers.

“The House is also aware that the Federal Ministry of Agriculture and Food Security, pursuant to the Presidential Food Security Initiative (PFSD, 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 factors annually, this agreement was estimated to cost Nigeria about $684,190,433 and N138,613,486,965 as actual equipment cost and delivery/assembly cost, respectively.

“The House is cognizant that both agreements were laden with benefits to accrue to Nigeria if implemented, which include 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.

“The House is worried 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.

“The House is concerned that the non-delivery of these tractors and implements is a setback to the Renewed Hope Agenda in Agricultural mechanization and this poses a challenge to Nigeria’s food sufficiency ambition, as two farming seasons have been lost since the signing of the agreements.

“The House is cognizant of the need to investigate the non-delivery of the tractors, implements, and combined harvesters for over one year after the agreements were signed and the status of the tractor assembly plants contemplated by the agreements,” he noted.

In the bid to ensure accountability, the lawmakers 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; and inquire on the status of the tractor assembly plants contemplated in the agreements.

To this end, the House mandated its Committee on Agricultural Production and Services to investigate the procurement and distribution of farm implements within the purview of the Federal Department of Agriculture (FDA) in the Federal Ministry of Agriculture and Food Security and report within four for further legislative action.

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