(Ecofin Agency) - The government of Nigeria plans to mobilize $1 billion from international banks to finance agricultural mechanization, agriculture Minister Sabo Nanono reports. 

Lenders include the Islamic Development Bank (IDB), Deutsche Bank (DB) and the Brazilian Development Bank (BNDES). The loan will be channeled through the Central Bank of Nigeria (CBN) and will be repaid over a period of 15 years at an annual interest rate of 3%.

Nanono explains the money will be used to purchase 10,000 tractors and 50,000 units of equipment and materials to be assembled in Nigeria. Beneficiaries of the mechanization program will be trained over a 10-year period, and 780 small-scale agricultural mechanization service delivery centres will be set up in the country.   

According to government estimates, the penetration rate of tractors is 7 per 100 km² of arable land. The country's need for agricultural tractors is estimated at between 70,000 and 100,000 units.

Espoir Olodo