By Awyetu Asabe Hope
The Federal Government has launched 2,000 tractors and unveiled a N50bn seed fund to deepen agricultural financing, as part of efforts to scale up mechanised farming and food production nationwide.
Speaking at the flag-off ceremony in Abuja, the Minister of Agriculture and Food Security, Abubakar Kyari, described the initiative as a major milestone under the leadership of Bola Tinubu.
Kyari said the tractors would be deployed in phases under the Renewed Hope National Agricultural Mechanisation Programme, beginning with 600 units, followed by 750 and 650 tractors to complete the 2,000 target. The programme also includes over 9,000 precision implements.
He disclosed that more than 100,000 applications were received for the first phase, reflecting strong interest in the scheme.
According to the minister, the tractors will not be allocated for private ownership but assigned to Mechanisation Service Providers (MSPs) under a lease-to-own arrangement.
Each tractor is expected to service about 600 hectares annually, targeting over 1.5 million hectares and benefiting about 1.2 million farmers every year.
Kyari added that the Bank of Agriculture, in collaboration with Heifer International, would deploy structured financing models, including leasing and hire-purchase systems, to ensure sustainability and accountability.
He further revealed that each tractor would come with two years of free service support, alongside plans to deploy 36 mobile service trucks, establish seven mega mechanisation service centres nationwide, and set up a mega tractor assembly plant with a projected annual capacity of 2,000 to 4,000 units.
As part of the broader financing framework, Kyari announced a N50bn catalytic seed fund with the Bank of Industry to unlock agro-industrial investments.
He also said N250bn had been mobilised to finance one million smallholder farmers cultivating an average of one hectare each during the 2026 wet season.
The minister emphasised that the initiative combines mechanisation, financing and policy support to drive food security, job creation and economic resilience across the country.
