BOA Explains Renewed Hope Tractors Delay, Reveals New Distribution Date

News in Brief:

-Nigeria's Bank of Agriculture says the delay in distributing the 2,000 Belarus tractors under the Renewed Hope programme was deliberate to ensure a transparent, sustainable mechanisation system rather than indiscriminate allocation to individuals.

-The tractors will now be deployed from January 2026 to vetted mechanisation service companies, allowing millions of farmers to access services while supporting plans to scale the fleet nationwide.

The Managing Director and CEO of the Bank of Agriculture (BOA), Ayo Sotirin, has explained why the 2000 tractors acquired under the Renewed Hope Agricultural Mechanisation Programme have not been distributed to Nigerian farmers. 

In an interview, Sotirin said that the delay was intentional as work was ongoing to reform the country's agricultural mechanisation system.  

According to the executive, the 2,000 Belarus tractors, which President Tinubu took delivery of in February and launched their distribution with a flag-off ceremony in June 2025, could not be handed over indiscriminately to farmers. 

Meanwhile, he confirmed plans for distribution in January 2026 based on the equitable conditions and transparent process adopted by the bank.

Tractor Distribution Delayed

Ayo Sotirin ascribed the delay to the bank’s need to get things right and avoid undermining the national mechanisation masterplan by excluding millions of farmers.

“We want to get it right for the first time in the history of interventions in the agricultural sector. These tractors were bought with taxpayers’ money and cannot be given free to individuals. If you give 2,000 tractors to 2,000 people, you disenfranchise over 69 million farmers,” he stated.

Distribution Begins in January 2026

According to Sotirin, the tractors are not intended for direct allocation to farmers. The plan is to allocate the machinery strategically to mechanisation service providers to scale the impact of the program.

“Farmers are not mechanisation service providers. A tractor is a business tool,” Sotirin said. “You cannot give a truck to a wholesaler and expect him to start a transport business. In the same way, you don’t give a tractor to a farmer cultivating one hectare.”

He revealed that after its advert for applications, the bank received 110,000 applications from mechanisation service providers nationwide. These applications are currently being shortlisted to 4,000, and eventually 2,000 companies, which will start receiving tractors in January.

Requirements for Successful Applicants

Sotirin explains that BOA will allocate the tractors only to companies with verifiable financial capacity, strong balance sheets, and the ability to pay a 25 per cent deposit. These companies must also be capable of cultivating a minimum of 500 hectares.

This, according to him, ensures optimal use of the equipment and wider access for farmers.

“If you spread 2,000 tractors across the 36 states, each state will have about 80 to 100 tractors. In that way, 2,000 tractors can cover over 100,000 hectares and serve millions of farmers,” he said.

The bank's manager also assured that the financial institution will ensure a merit-based approach and avoid prejudice in the distribution. 

“There will be no political allocation. If we discover that any tractor has gone to a political person, it will be taken back. No party sharing, no monkey business,” he said.

Plans for Expansion and Scaling

He further explained that the bank will employ digital solutions and a structured financing framework to expand the program.

 

According to him, farmers will book services through an app, and the tractors will be refinanced over a three-to-five-year period with payments tied to usage rather than fixed monthly schedules.

“They pay as they use. Once a tractor works on 10 hectares, the system records it and generates an invoice. That is how we ensure accountability and sustainability,” he explained.

Recovered funds from repayments, he added, will be reinvested to expand the fleet to 40,000 tractors nationwide.

“This is a growing mechanisation plan, from 2,000 to 4,000, and ultimately to 40,000 tractors,” he said.

According to him, BoA has also procured 36 mobile service trucks that will provide on-site maintenance and routine servicing.

 In addition to this, major tractor hubs will be established across the six geopolitical zones to handle complex repairs and maintain the tractors throughout their lifespan. He described the initiative as Nigeria’s first fully integrated mechanisation ecosystem.