FG earmarks #50bn for agric equipments #nigeria

The Federal Government has earmarked N50 billion for
Mechanisation Intervention Support Fund to speed up the
establishment of 1,200 private sector-driven Agricultural
Equipment Hiring Enterprises nationwide.
President Goodluck Jonathan made this known in Abuja on
Monday while inaugurating 100,000-metric tons silo
complex and the private sector-driven Agricultural
Equipment Hiring Enterprises.
Represented by Vice-President Namadi Sambo, the
President said his administration would also begin the
provision of mechanisation support grants to farmers to
enable them to access agricultural mechanisation services.
"As part of our drive to limit the use of hand hoes and
cutlasses, and replace them with modern agricultural
equipment, I direct the Central Bank of Nigeria (CBN) to set
aside the sum of N50 billion Mechanisation Intervention
Fund.
"This support fund will allow and speed up the full
establishment of the 1,200 private sector-driven
Agricultural Equipment Hiring
Enterprises across all the states of the federation. The
Federal Government will, for the first time ever in the history
of Nigeria, begin the provision of mechanisation support
grants to farmers to allow them to hire agricultural
mechanisation services.
"The Growth Enhancement Scheme and the e-wallet
scheme of the Federal Government will be expanded to
provide subsidised electronic mechanisation support
vouchers to farmers, which they will use to pay the
agricultural hiring enterprises to provide mechanisation
services for their farms," he said.
According to him, as the country produces more food, it has
become necessary to expand food storage capacity and
reduce post-harvest losses.
He, therefore, said that the development of strategic grains
reserve was central to government policy of stabilising food
prices for consumers and assuring guaranteed minimum
prices and market access for farmers.
The President noted that Nigeria was the first in Africa to
develop the electronic wallet scheme for reaching farmers
with subsidised farm inputs via mobile phones.
He also said the country was also leading in providing
mechanised services support from the private sector to
farmers using mobile phones.
"Today, seeds, fertiliser, tractors and agricultural equipment
service provision to farmers are all linked to mobile
phones," he stated.
Jonathan said the Federal Government, through the Federal
Ministry of Agriculture and Rural Development, had provided
N4.5 billion to support the provision of affordable
refinancing facility to allow private sector acquisition of the
facilities, through the Bank of Agriculture.
He also explained that the Nigeria's Agricultural Equipment
Enterprise model was voted as the best agricultural
mechanisation programme in Africa.
The President said, "I also understand that the Agricultural
Equipment Hiring Enterprise model was voted in 2013 as the
best agricultural mechanisation programme in Africa by the
African Rural and Agricultural Credit Association, which
includes Central Bank Governors, commercial banks,
agricultural banks and micro finance institutions across
Africa.
"I am pleased to note that the financing arrangement
requires the government to provide 35 per cent of the loans,
Bank of Agriculture 35 per cent, the agro-machinery
vendors to provide 10 per cent and service provider
operators will provide 20 per cent equity to kick-start the
Agricultural Equipment Hiring Enterprises."