FG Secures $70 Million Deal with John Deere to Enhance Agricultural Mechanization

FG Secures $70 Million Deal with John Deere to Enhance Agricultural Mechanization

The Federal Government of Nigeria, through the National Agricultural Development Fund (NADF), has signed a $70 million contract with AGCOMS International Trading Limited, a sub-dealer of John Deere, to supply and assemble 2,000 mechanised agricultural equipment. The agreement is part of a broader effort to bolster food security and improve mechanised farming in the country.

Details of the Deal

The contract encompasses:

• 2,000 tractors,
• 100 combined harvesters,
• Additional equipment such as ploughs, planters, harrows, and trailers.

The equipment will be assembled locally in Nigeria, with training and product support included to ensure program sustainability.

Key Benefits

During the signing ceremony in Abuja, Abubakar Kyari, Minister of Agriculture and Food Security, highlighted the significance of the initiative:

• Improving Agricultural Mechanisation: The program addresses the challenges of declining farm operations and the reluctance of youth to engage in agriculture due to labour-intensive practices.
• Job Creation: It is expected to generate employment opportunities in rural areas.
• Poverty Reduction: Increased mechanisation aims to boost productivity and reduce poverty.

“The need for mechanisation seeks to improve our production capacity. Ageing farm operations and youth disinterest in agriculture due to drudgery underscore the urgency for this program,” Kyari stated.

The Federal Executive Council (FEC) approved the direct procurement of the equipment in October 2024. NADF Executive Secretary Mohammed Abu revealed that the program is one of four federal government mechanisation initiatives under President Bola Ahmed Tinubu’s administration.

Abu also noted:

• The John Deere assembly plant will be established near ports in collaboration with the Nigerian Ports Authority.
• Tractors and equipment are expected to be delivered before the wet season.
• A stakeholder engagement hosted by HAIFA, an international partner, will guide the program’s implementation.

Chijioke Okoli, Country Director of AGCOMS International Trading Unit, emphasised the importance of training and local capacity development:

• The assembly plant will provide hands-on training for local technicians, ensuring long-term operational sustainability.
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• Comprehensive product support will be available to maximise the lifespan and efficiency of the equipment.

“This agreement is not just about procurement. It includes training, product support, and capacity building to ensure the equipment remains functional for decades,” Okoli explained.

The program aligns with Nigeria’s push to diversify its economy away from oil dependence. It aims to modernise agriculture, enhance productivity, and ensure food security for millions of Nigerians.