Alluvialtrade, Indian conglomerate Tata and heavy equipment giant John Deere have signed a partnership agreement. The company disclosed recently in a press release. Tata John Deere will deploy the tractors to states in the Niger Delta as well as adjoining states.

Niger Delta states comprise Akwa-Ibom, Abia, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers states.

Terms of the agreement

Tata John Deere (which is the joint venture distributor of the partnership) will deploy up to 300 tractors over the next two years to farms spanning 120,000 hectares, or 463 square miles, in the Niger Delta and nearby states.

The Niger Delta is one of the geopolitical zones in the country and comprises Akwa Ibom, Cross River, Bayelsa, Rivers, Delta and Edo.

Individual farmers will undertake self-financing lease agreements for the use of both the tractor and a driver.

Who does this benefit?

Most farmers in the country cannot afford to purchase tractors of theirs. The few available are often managed by government agencies, that apply a lot of bureaucracy before releasing them. When these tractors are finally available, the farming season is far gone.

The move will also create employment in the Niger Delta, which often witness youth restiveness and militancy. Nigeria’s crude oil deposits are predominantly located in the region and militant attacks on oil installations often lead to a drop in crude oil production and revenue for the government.

The Buhari administration has also taken diversification of the country’s economy as a key agenda.

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John Deere, established in 1837, is American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment. The company had net sales and revenues of $29.7 billion in 2017.

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Tata was founded by Jamsetji Nusserwanji Tata in 1868. The group operates over 100 companies across 6 continents and employs over 695,000 staff. The Group had Q1 2018 revenues of $144.7 billion.

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Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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