By By Elizabeth Ugbo
The Bank of Agriculture (BOA) recently launched 2,000 tractors under the Pay-As-You-Service (PAYS) scheme in Kwali Area Council, Federal Capital Territory, to boost smallholder farmers’ productivity, reduce post-harvest losses, and support sustainable mechanisation nationwide, aligning with President Bola Tinubu’s Renewed Hope Agenda.
Strategic Shift from Past Programs
BOA Managing Director, Mr. Ayodeji Sotinrin, described the initiative as a strategic shift from previous interventions that failed due to poor maintenance and unsustainable financial models.
“This is a promise kept by President Bola Tinubu. We are moving from symbolic distribution to a model that guarantees accountability and long-term impact,” Mr. Sotinrin said.
The PAYS model links loan repayments directly to revenue generated from tractor services, protecting farmers from rigid monthly obligations while keeping the fund revolving.
Tackling Nigeria’s Mechanisation Gap
Mr. Sotinrin highlighted that Nigeria has only 13 tractors per 100 square kilometres of arable land, far below the global average. Over 70 million hectares of land rely heavily on manual tools used by 95% of farmers, reducing productivity and increasing post-harvest losses.
The new scheme targets 1.5 million hectares of cultivated land and directly benefits an estimated 1.2 to 1.5 million smallholder farmers.
Allocation and Service Structure
- 10% of tractors: Sold to commercial agribusinesses for quick capital recovery.
- 90% of tractors: Deployed through state and local governments to empower youth and women as service providers.
To prevent abandonment, BOA is setting up 40 mobile service stations and seven large mechanisation centres. Digital monitoring systems will track tractor usage and maintenance in real time.
Government Support and Oversight
Senator Abubakar Kyari, Minister of Agriculture and Food Security, described the rollout as the largest agricultural mechanisation programme in Africa. He emphasised that tractors are entrusted to service providers capable of covering around 600 hectares annually.
“Each tractor comes with two years of free service support. We are also deploying 36 mobile workshops and seven mega centres to instil a maintenance culture,” he said.
Gender Inclusion and Community Impact
The Minister of State for Agriculture highlighted equitable implementation with strong gender inclusion. Women play a critical role in agricultural productivity.
Aisha Bako, President of Women in Mechanised Agriculture, praised the PAYS model for removing prohibitive upfront costs. Beneficiaries pledged to adhere to maintenance and repayment terms, confident the programme will expand cultivation, reduce post-harvest losses, and improve community livelihoods.
