The Bank of Agriculture (BoA) has proposed a nationwide partnership with members of the House of Representatives to mechanise arable land across all 360 federal constituencies in Nigeria.
The proposal was presented by the bank’s Managing Director, Mr. Ayo Sotinriade, during the plenary on Tuesday in Abuja.
Sotinriade said the initiative is designed to boost agricultural productivity, create jobs, reduce hunger, and address insecurity across the country.
What the BoA MD is saying
The BoA boss explained that the plan would transform Nigeria’s agricultural landscape by shifting from subsistence farming to large-scale mechanised production.
- “After purchasing the tractor, members will provide fenced land, and we will create a farming hub and a tractor booking service.
- “Other services the constituency will enjoy are access to farm inputs, irrigation services, aggregation of commodities, provision of banking services for local farmers, as well as extension services to guarantee more than two tonnes per hectare.”
He added that each lawmaker would be required to contribute 60% of the cost of a tractor to be deployed within their constituency, noting that a single tractor can cover up to 600 hectares annually.
Get up to speed
The proposal follows recent efforts by the Federal Government to strengthen agricultural financing and productivity.
- The government approved a N250 billion facility for the BoA to support smallholder farmers with single-digit interest loans.
- The initiative is part of broader reforms to improve agricultural insurance and financing through agencies such as NAIC and NAQS.
- The Nigerian Agricultural Insurance Corporation has supported over 199,000 farmers with risk coverage valued at N700 billion in the past two years.
These efforts are aimed at improving access to finance, modern inputs, and risk protection for farmers nationwide.
More insights
Sotinriade said the initiative could serve as a major tool for poverty reduction and economic inclusion if effectively implemented.
- He noted that irrigation services under the programme would allow farmers to cultivate crops up to three times a year.
- The initiative is expected to increase incomes, reduce insecurity, and improve livelihoods across rural communities.
Internally displaced persons in states such as Borno and Benue are also expected to benefit from the programme.
- “We are thinking of this initiative as an enhancer, a catalyst to solving poverty and taking people off the social register,” he said, stressing its potential to drive inclusive growth.
What you should know
The BoA has been ramping up efforts to support Nigeria’s agricultural value chain through strategic funding partnerships.
- The bank recently secured a $1 billion intervention fund in collaboration with Afreximbank.
- The fund is targeted at boosting smallholder farming and improving market access.
- It aligns with the Federal Government’s National Food Security Fund aimed at enhancing food production nationwide.
The proposed mechanisation plan is expected to complement these initiatives and accelerate Nigeria’s push towards food security and agricultural export growth.
