News in brief:
– The House of Representatives probes delays in delivering tractors and harvesters under a federal contract, affecting farming seasons and food security efforts.
– Rising food inflation, now at 38.67%, underscores the need for mechanized agriculture to boost production and reduce food costs.
The House of Representatives has ordered its Committee on Agricultural Production and Services to investigate the failure to deliver 2,000 tractors and 100 combined harvesters, despite a year-long agreement with John Deere Tractors. This delay comes as Nigeria grapples with food insecurity and rising inflation, which mechanised agriculture could alleviate.
Background on the agreement
The Federal Ministry of Agriculture and Food Security had signed a contract with John Deere Tractors to supply the equipment annually. Additionally, the agreement included establishing a tractor assembly plant with AFTRADE DMCC to produce 9,022 agricultural implements and 2,000 Belarus tractors annually. The cost of the assembly plant project was pegged at $70 million and ₦2.98 billion, covering sales, after-sales services, spare parts, and training for mechanized service providers.
Food security and inflation at risk
Ahmed Adam Saba, a lawmaker representing Edu/Moro/Patigi in Kwara State, expressed concerns over the delay during plenary on December 17. He highlighted that this setback is jeopardising the Renewed Hope Agenda for agricultural mechanisation, with two farming seasons already lost. This failure undermines Nigeria’s efforts to boost food production, a key component of President Bola Tinubu’s emergency declaration on food security in July 2023.
Impact on food prices and inflation
The National Bureau of Statistics (NBS) reports that food inflation reached an average annual rate of 38.67% in November 2024, a significant increase from 27.09% in November 2023. Rising prices for staples such as rice, yam flour, and frozen chicken have made food unaffordable for many Nigerians. Mechanised agriculture, enabled by tractors and other implements, could help reduce these costs by increasing production efficiency.
The investigation aims to determine the cause of the non-delivery and assess the status of the assembly plant. Lawmakers seek accountability to ensure such agreements fulfil their promise of transforming agriculture and combating food insecurity in Nigeria.