A total of N727.3 billion has been invested in importation of agricultural equipment and mechandise from the United States between October 2020 and March 2021.
The goods exported to Nigeria include tractors and implements, soyabeans, intermediate food products (especially vegetable oils and animal fats), condiments and sauces, processed vegetables, corn, wine, prepared food, dairy products, non-beverage ethanol), and fish products.
The Federal Government had said it would acquire 60,000 tractors and equipment to drive the nation’s agro economy.
The Minister of Agriculture and Rural Develop-ment, Mohammed Nanono, said that the proposed 60,000 tractors would drive agric mechanisation that would revolutionise the sector across various value chains.
This is according to a report by the International Trade Administration (ITA), which showed that imports increased with increasing demand for farm equipment and products which were in short supply in Nigeria.
The reports also showed that the agricultural tractor market was growing steadily and expected to maintain a year over year rate of 4.4 per cent between 2019 and 2024.
According to the agency, the Federal Ministry of Agriculture and Rural Development signed a Memorandum of Understanding (MoU) with John Deere for the supply of 10,000 units of farm tractors over a fiveyear period since 2018.
It added that agricultural tractors imported as Complete Knock Down (CKD) or Semi Knock Down (SKD) units for local assembly attracted zero duties and zero Value-Added Tax (VAT).
Although, while it said that no duty was imposed on Fully Built (FB) units, 7.5 per cent VAT, however, applied.
Also, it stressed that used tractors were surcharged 35 per cent import duty and 7.5 per cent VAT. Because of diversification programme of the Federal Government, it was learnt that Nigeria was in partnership with the More Food International Programme (MFIP) of Brazil to support small farmers with mechanisation.
Under the partnership, ITA report explained that Brazil would fund the project with a loan of N517billion ($1.1 billion) over a period of 15 years and supply 10,000 tractors to Nigeria.
While the government remains the biggest purchaser of new farm machinery in Nigeria, ITA report explained that private sector investors were developing their out-grower network of farmers and enabling them with mechanisation, technology and farm extension assistance, adding that they were more inclined towards buying used equipment.
