FG unveils agric mechanisation policy, targets 4,000-capacity tractor plant

The Federal Government has unveiled the National Agricultural Mechanisation Policy and the National Agricultural Mechanisation Investment Strategy, with plans for a tractor assembly plant that can produce up to 4,000 tractors annually. Minister of Agriculture and Food Security, Senator Abubakar Kyari, presented the documents on Wednesday in Abuja at a High-Level National Policy Dialogue on Agricultural Mechanisation.

The dialogue was themed, ‘Anchoring National Food Sovereignty through Sustainable Agricultural Mechanisation Policy, Innovation and Strategic Investment.’

Shift to private investment

Kyari said the new policy framework would move agricultural mechanisation from a government procurement-driven model to a sustainable investment-based system capable of attracting capital, technology and entrepreneurship. He said food security remained critical to Nigeria’s national sovereignty, economic resilience and stability, and that the Renewed Hope Agenda of President Bola Tinubu had positioned agriculture as a key driver of productivity, prosperity and economic transformation.

“Our responsibility as a ministry is to translate that vision into policy architecture, institutional coherence and practical pathways for investment and delivery,” Kyari said.

“The opportunity before us is therefore to build an ecosystem in which capital, technology, skills and entrepreneurship converge around one objective: making mechanisation commercially viable and widely accessible.”

The minister said mechanisation extends beyond tractors to cover land preparation, planting, irrigation, crop protection, harvesting, processing, storage, logistics and transportation. He also said the government is seeking to establish a “Mechanisation-as-a-Service” economy that allows farmers to access agricultural technology when and where needed.

2,000 tractors, mega plant plan

Kyari disclosed that the government has commenced the procurement and deployment of 2,000 tractors alongside more than 9,000 assorted implements and spare parts under the Renewed Hope National Agricultural Mechanisation Programme (RH-NAMP).

The investment strategy also provides for the establishment of a mega tractor assembly plant capable of producing between 2,000 and 4,000 tractors annually. The minister said the plant is expected to reduce Nigeria’s dependence on imported agricultural machinery, strengthen domestic industrial capacity and create jobs.

He urged young people and women to actively participate in the emerging mechanisation economy.

“Our youths must not stand at the edge of the mechanisation economy. They must own, operate, innovate and lead it,” Kyari said.

Borno State Governor Babagana Zulum also spoke at the event, saying agricultural mechanisation must go beyond the acquisition of machinery. “We must build the agriculture of tomorrow. Agriculture must be mechanised and smart,” he said.

SAPZ, import bill and post-harvest losses

The policy comes as the government pushes to attract investment across the agricultural value chain. The Special Agro-Industrial Processing Zones (SAPZ) programme was recently projected to generate an internal rate of return of 30.85%, with the government seeking to attract $4.4 billion in investment.

National Programme Coordinator of SAPZ, Dr. Kabir Yusuf, said the programme is designed to attract private-sector capital, increase exports, strengthen food security and promote value addition. Yusuf also cited Kyari’s concerns over Nigeria’s annual food import bill of more than $10 billion, compared with agro-export earnings of less than $400 million annually.

He said those figures highlight the need to strengthen domestic production, processing, logistics and market access. Yusuf also noted that post-harvest losses remain a major challenge, with an estimated 30% to 60% of farm produce lost before reaching markets.

Earlier in the year, the Federal Government approved a N250 billion facility for the Bank of Agriculture to provide financing to smallholder farmers at a single-digit interest rate. Kyari disclosed this during a Quarterly Citizens and Stakeholders Engagement Session in Abuja. He also highlighted the roles of the Nigerian Agricultural Insurance Corporation, National Agricultural Quarantine Service and Bank of Agriculture in supporting farmers.

What it means for the naira and businesses

If the mechanisation policy delivers on its targets, it could cut Nigeria’s heavy food import bill and reduce dependence on foreign machinery. That would ease pressure on the naira, boost local agro-industrial capacity and open new opportunities for entrepreneurs and farmers across the value chain.