The Federal Executive Council (FEC) has approved the award of a contract worth $117.83 million and N28.43 billion for the procurement of tractors, machinery, spare parts and other agricultural equipment for the National Centre for Agricultural Mechanisation (NCAM).
The Minister of Agriculture and Food Security, Sen. Abubakar Kyari disclosed this in a post on his official X handle.
According to him, the execution of the contract by selected firms will be divided into two stages- the supply of ready-made tractors, and other machinery and the transition to local assembly of agricultural machinery.
He noted that $117.83 million and N28.4 billion included the cost of clearing by the customs service and 7.5% Value Added Tax (VAT) with the delivery timeline set at 60 to 360 days.
The statement reads, “I am pleased to announce that the Federal Executive Council has approved a memo I presented as the Honourable Minister of Agriculture and Food Security for the award of a contract to procure tractors, machinery, implements, vehicles, equipment, and spare parts for the National Centre for Agricultural Mechanization (NCAM).”
“The total contract sum stands at $117,830,783.00 plus N28,439,777,100.00 to cover the cost of clearing, customs duties, levies, and delivery to locations across the country, with a delivery timeline of 60 to 360 days, inclusive of 7.5% VAT.”
The Minister added that the initiativewas designed to bolster national food security and reduce reliance on imports. It will promote national development across both public and private sectors by improving agricultural productivity, boosting profitability, and optimizing land use for a wider
Last year, during the Vice President’s visit to the United States, a U.S tractor company in a meeting with the Nigerian contingent led by the V.P disclosed plans to invest in a tractor manufacturing company in Nigeria.
According to press releases from Stanley Nkwocha, the Senior Special Assistant on media and publicity in the Office of the Vice President, the meeting between the Federal Government and representatives of the American tractor manufacturing firm was arranged by Mr. John Coumantaros, Chairman of Flour Mills of Nigeria.
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