Reps probe $754.2m, N141.6bn tractors, harvesters contract fraud
The House of Representatives has mandated its Committee on Agricultural Production and Services to investigate the non-delivery of the 2,000 tractors, implements, and 100 combined harvesters within the stipulated period contained in an agreement under the Presidential Food Security Initiative and Renew Hope Agricultural Mechanization Drive and inquire on the status of the tractor assembly plants contemplated in the agreements.
The Committee is to also investigate the procurement and distribution of farm implements within the purview of the Federal Department of Agriculture (FDA) in the Federal Ministry of Agriculture and Food Security and report within four weeks (4) for further legislative action.
This followed the adoption of a motion moved by Rep. Saba Ahmed Adam at the Plenary on Tuesday.
Presenting the motion, he informed that, President Bola Ahmed Tinubu had on Thursday, July 13, 2023, declared a state of emergency on food security, and a major component put forward to boost food production was massive agricultural mechanization across the country.
According to the lawmaker, the declaration of the state of emergency was as a result of the food inflation in the country resulting in hunger and starvation of Nigerians.
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He said, “This ugly trend was frowned at by Mr. President, and as part of the Renewed Hope agenda of his administration, he showed great determination to revolutionize food production in Nigeria.
“The Federal Ministry of Agriculture and Food Security has signed an agreement with John Deere Tractors to supply 2000 tractors implements and 100 combined harvesters annually. In line with the Renewed Hope target for increased food production and food security, the contract for a tractor assembly plant in Nigeria was agreed to cost $70,041,733.80 and N2,981,739,134.30, respectively, with actual equipment and delivery costs. The contract includes sales, after-sales services, spare parts, and training for mechanized service providers.
“The Federal Ministry of Agriculture and Food Security, pursuant to the Presidential Food Security Initiative (PFSI), entered into another five (5) years agreement with AFTRADE DMCC for establishment of a tractor assembly plant to produce 9,022 agricultural implements and 2,000 Belarus tractors annually. This agreement was estimated to cost Nigeria about $684,190,433.00 (Six hundred and eighty-four million, one hundred and ninety thousand, four hundred and thirty-three dollars and N138,613,486,965.00 (one hundred and thirty-eight billion, six hundred and thirteen million, four hundred and eighty-six thousand, nine hundred and sixty-five Naira only) as actual equipment cost and delivery/assembly cost, respectively.
“Both agreements were laden with benefits to accrue to Nigeria if implemented, which include increased agricultural production, technology transfer, and reduction of the foreign currency expenditure on the purchase of ready-made equipment due to the growth of local production”.
Rep. Adam lamented that a year after the agreements were signed by the National Agricultural Development Fund and the Federal Ministry of Agriculture and Food Security, no single tractor or implement has been received in Nigeria despite the huge public funds involved in these transactions.
Reps probe $754.2m, N141.6bn tractors, harvesters contract fraud