The Nigerian Agricultural co-operative and Rural Development Bank has signed an agreement with a Chinese company for the supply of 10,000 tractors.
The Chairman of the bank, Chief Gordon Bozimo, said in Abuja on Monday that the agreement was worth $400 million, while the Ministry of Agriculture and Water Resources would subsidise the tractors by 25 per cent for farmers.
The chairman, who spoke at the signing ceremony, said the Chinese firm would also provide after_sales service to keep the tractors running.
Bozimo said only 15, 000 tractors were still operating in the country. â€œThe agreement, worth $399.9 million, entails the supply of machineries and equipment and after_sales product stewardship commitment by the manufacturers.
â€œOne of the conditions for the agreement is to advance payment of 16 per cent of the contract sum while the balance of 84 per cent will be amortised over a period of 10 years at a pegged interest rate of two per cent,â€ he said.
He said the facility would attract two yearsâ€™ moratorium on both principal and interest while the supplier would establish service centres across the six geo_political zones.
In his remarks, Minister of Agriculture and Water Resources, Dr Abba Ruma, calledÂ for wider consultation on the agreement in order to facilitate the signing ofÂ a Memorandum ofÂ Understanding.