NICA has entered into a partnership agreement with the FGN through her participation in the Federal Government Tractor Hiring Service Delivery Programme nationwide. This is evidenced in the recent partnership agreement entered into and signed with the Federal Government of Nigeria (FGN), via the Federal Ministry of Agriculture and Water Resources (FMAWR), under the supervision of the National Food Reserve Agency (NFRA); to participate in the implementation of the Tractor Service delivery programme nationwide, through a Public Private Partnership (PPP) arrangement.

Public Private Partnership (PPP) Programme is a procurement strategy where the private sector delivers a public service on its behalf, in so doing the private sector partner assumes substantial risk for the service delivery. Benefit of this partnership arrangement to the scheme include:

• It provides value for money for the public and enables resources that could have been used for outright purchase of Agricultural equipment, to provide other social services.
• If properly implemented, it will strengthen sectoral development, enhance national food security, improve farmer’s income, etc.

Who Qualifies to Apply

Specialized Agricultural cooperative groups. Contact Us for more Information

Vision of the Scheme

To develop an appropriate and sustainable Tractor Service Delivery through Public Private Partnership (PPP) targeted at raising the level of farm power availability from the present 0.2HP/hectre to at least 1.0 Hp/hectare by the 2015.

Specific Objectives

• Facilitate farmer’s easy access to farm power through subsidized Tractor Service Delivery System.
• Generate youth employment and sustainable engagement in commercial agriculture.
• Enhance the skill of the specialized cooperative tractor service provider by training the tractor operators, technician, vulcanizer, spare part dealer, etc.
• Stimulate the establishment of manufacturing or assembly plants in Nigeria.

Stakeholders in the scheme

• The Federal & State Governments.
• Agricultural machinery manufacturers and their accredited dealers.
• Specialized cooperative groups and organized graduate farmers.
• Research and development institutions or organizations, development partners, etc.
• Financial institutions (Banks, Micro finance institution, insurance companies etc.

How the subsidy is to be applied

• 40% subsidy by the Government (Federal and State) would be deployed to the machinery manufacturer vendor by the Nigerian National Food Reserve Agency (NFRA) , upon delivery of equipment to qualifying specialized cooperative groups.
• The specialized cooperative groups will provide land preparation operations (ploughing, harrowing, ridging and trailing on a hire basis to local farmers at a fee.
• Specialized cooperative groups are expected to make a down payment of at least 10 % before taking delivery of the tractors and implements.
• Machinery manufacturers/vendors will provide workshop and after sales services.

Financing Breakdown

• 25% subsidy contribution to be provided by the Federal Government.
• 15% subsidy contribution to be provided by State Government.
• 60% equity contribution by the agricultural machinery manufacturers/vendors to be recovered from the specialized cooperative groups, farmers, etc over a period of 3 years.
• Specialized cooperative groups are expected to make a down payment of at least 10 % before taking delivery of the tractors and implements.