Nigeria is resetting the machinery of its agricultural economy, with the Federal Government introducing a policy framework aimed at expanding access to farm equipment, drawing private capital into the sector and raising productivity.
The National Agricultural Mechanisation Policy and the National Agricultural Mechanisation Investment Strategy were unveiled on Wednesday in Abuja by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, at a High-Level National Policy Dialogue on Agricultural Mechanisation.
The dialogue, themed “Anchoring National Food Sovereignty through Sustainable Agricultural Mechanisation Policy, Innovation and Strategic Investment,” placed mechanisation at the centre of Nigeria’s food security ambitions.
Kyari said the new framework would move the country away from a system largely driven by government procurement towards a market-led model in which investors, technology providers, skilled operators and entrepreneurs can build viable businesses around agricultural machinery.
“Our responsibility as a ministry is to translate that vision into policy architecture, institutional coherence and practical pathways for investment and delivery,” he 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 policy takes a broader view of mechanisation than tractor ownership. It encompasses land preparation, planting, irrigation, crop protection, harvesting, processing, storage, logistics and transportation.
The government intends to develop what Kyari called a “Mechanisation-as-a-Service” economy, allowing farmers to hire machinery and related services as required instead of carrying the cost of owning and maintaining expensive equipment.
There is already movement on the ground. Under the Renewed Hope National Agricultural Mechanisation Programme (RH-NAMP), procurement and deployment have commenced for 2,000 tractors, supported by more than 9,000 assorted implements and spare parts.
The investment strategy goes further with plans for a mega tractor assembly plant capable of turning out between 2,000 and 4,000 tractors each year.
Such a facility would give domestic manufacturing a larger role in agricultural equipment supply, reduce dependence on imported machinery and open additional employment opportunities.
Kyari also wants young Nigerians and women to become participants in the business that mechanisation is expected to create, rather than remain on the margins of it.
“Our youths must not stand at the edge of the mechanisation economy. They must own, operate, innovate and lead it,” he said.
Borno State Governor Babagana Zulum, who also spoke at the event, argued that buying machinery should not be mistaken for agricultural transformation.
“We must build the agriculture of tomorrow. Agriculture must be mechanised and smart,” he said.
The policy arrives alongside other measures aimed at moving more money and investment into Nigeria’s agricultural value chains.
The Special Agro-Industrial Processing Zones (SAPZ) programme, for instance, is targeting $4.4 billion in investment and has been projected to deliver an internal rate of return of 30.85%.
According to the National Programme Coordinator of SAPZ, Dr. Kabir Yusuf, the programme is structured to draw private-sector capital into agro-industrial development, expand exports, strengthen food security and increase value addition.
The numbers behind Nigeria’s food trade make the case for a stronger domestic production base. Yusuf cited concerns raised by Kyari over an annual food import bill of more than $10 billion, against agro-export earnings of less than $400 million.
A sizeable share of what Nigerian farmers produce is also lost before it reaches consumers. Yusuf put post-harvest losses at an estimated 30% to 60%, underscoring the pressure on the country’s storage, processing, transport and market systems.
The financing question is also receiving attention. Earlier this year, the Federal Government approved a N250 billion facility for the Bank of Agriculture to lend to smallholder farmers at a single-digit interest rate.
Kyari announced the facility at a Quarterly Citizens and Stakeholders Engagement Session in Abuja, presenting it as part of efforts to improve agricultural financing and insurance.
The Nigerian Agricultural Insurance Corporation, National Agricultural Quarantine Service and Bank of Agriculture are among the institutions expected to support farmers and strengthen the sector’s resilience.
What the government has now placed on the table is therefore larger than a tractor procurement programme. It is an attempt to establish the machinery, financing and commercial structures around which a more productive agricultural economy can operate.
The test will be whether the policy can translate equipment into dependable services for farmers, build local capacity to manufacture and maintain machinery, and connect increased production to processing, storage, transport and markets.
For Nigeria, the prize is substantial: higher farm productivity, stronger domestic manufacturing, more jobs, lower exposure to imported agricultural machinery and food, and greater value from an agricultural sector with room to expand.