The federal government’s efforts at attaining food security and produce more for export have been boosted by Mantrac Nigeria Ltd and the Nigerian Agricultural Mechanisation and Equipment Leasing Company (NAMEL), which have signed a memorandum of understanding (MoU) to open up 500,000 hectares of arable land for agricultural activities.
Under the scheme, the two firms would launch an Integrated Nationwide Agricultural Land Development Scheme (INALDS), a private sector initiative designed to open up an initial 500,000 hectares of unused arable land using appropriate agricultural land development technology.
To encourage Nigerians to participate in it, the two companies have adopted a payment system that is structured on a flexible deferred system over a period of one to three years. The project also accommodates farm management and global best practices along the agricultural value chain to optimise the use of the developed lands.
It is further structured to complement and optimise government’s efforts and resources in land development using a cost-split mechanism to support small-holder farmers and youth empowerment programmes, while creating a flexible investment window for medium and large-scale primary production investors to open more land at reduced initial cost.
At the signing of the MoU, the general manager , Machine Sales, Mantrac Nigeria, Mohammed Ibrahim, described the partnership with NAMEL as one that would change the phase of the agriculture sector and the country at large.
Ibrahim, who represented the managing director of Mantrac Nigeria Ltd , said the company was committed to empowering farmers to realise higher yields in the cultivation of rice, wheat, cassava, sugar cane and yam, among others.
Managing director of NAMEL, Dr. Ahmed Adekunle, said the deal is “the first private sector companies partnering strongly with the federal government to manage public sector funding for agriculture and economic development. Now, we have another private sector partner for land development for agriculture. What we are signing was discussed several years ago.
“However, we developed the MoU over a year ago to open up 500,000 hectares of farmlands to provide market for our mechanisation programme. We’re not opening land alone, we are also looking at inputs application, packaging, standardisation among others,” he said.
NAMEL and Mantrac Nigeria would provide consultancy services on the implementation of the value chain activities that would guarantee return on investment to ensure repayment of the deferred project cost, Adekunle said. The official unveiling of the project has been slated for May.
A representative of the minister of agriculture and rural development, Mr. Victor Mayomi, assured the parties of government’s support, especially in the urgent task of making agriculture a major non-oil revenue earner for the country.
The project would also involve clearing another 500,000 hectares in collaboration with banks and about 20 companies which have indicated interest in the deal.
According to the two firms, the INALD target is to open up at least 13,000 hectares in each state in collaboration with federal, state, local governments and private investors. The resources of these stakeholders would be converted into a certain percentage as equity while the balance is spread over to three years.
The partnership also covers the provision of services such as irrigation, access roads, soil- fertility advice and other valuable assistance aimed at ensuring that farmers produce the aforementioned crops twice or three times a year to fiercely tackle the food insufficiency crisis headlong.
