China is giving Nigeria, a loan to the tune of $4.5billion to buy appropriate farming tools to boost local agriculture. The tools include: tractors, bulldozers, graders, irrigation pumps and so on.

Chief Audu Ogbeh, the Minister of Agriculture and Governor Abdulaziz Yari of Zamfara state made the announcement on Tuesday, April 4. Ogbeh said: “We came to brief the President on developments following our visit to China in April last year and our negotiations on a number of issues to deal with machineries for agricultural development.

“We signed an agreement which engages all the states including FCT from the Federal Ministry of Agriculture for the procurement of strategic machinery for rural development and agriculture. Tractors, bulldozers, graders, irrigation pumps, tarsiers and so on from China.

The Chinese were willing to supply us these things for a long term basis, 20 years credit at an interest rate of 1 percent per annum. “A committee has been working on the matter and we are close to sorting out all the small details and that is why we came to see the President. “Of all the partners we have, the Chinese have shown the willingness to see us out of our problems, because about 30 years ago they were in the same crisis.



“They see us as people in the same circumstances that they were then and they are willing to help us get out of it and we appreciate it, the president does.” Speaking on the response of the president, the minister said: “The President responded well. He asked us to get in touch with the Ministry of Budget and Planning, Finance and CBN to sort out all the technical details and move on with it.

” Yari said: “They are giving us a credit line of $4.5billion which will cover the machineries and infrastructure that is rural earth dams, irrigation and the loan has a 20 years repayment term with 5 years moratorium.



“Initially we started negotiations to drop a counterpart funding of 25%, but understanding the economy of Nigereria, we negotiated to give a counterpart funding of 10 percent which we believe Nigeria can do and we are targeting the natural resources fund fro the counterpart funding.

“We are now speaking with the Chinese group and the Nigerian governors and the technical committee that was set up by the minister and the ministry of agriculture and rural development. “So we have now come to a stage where the President needs to come in so that he can give us a leadership role and a kind of approval of a certain level so that we can forge ahead.



“This government has said they will diversify the economy to agriculture and the only way that this can succeed is through agric mechanisation.” In conclusion, the Zamfara governor said: “The president has given us his commitment and also asked us to engage the minister of finance, budget and national planning and the CBN to conclude and then the minister of agric will make presentation to council, then to the national assembly for final approval.

Source http://www.focusngr.com/posts/china-loans-nigeria-4-5-billion-for-this-agriculture-project/

China gave $4.5 billion for mechanized agriculture to Nigeria - The loan given was for 20 years credit at an interest rate of 1 percent per annum

All these loans with nothing to show for them.

Isn't it too early to judge?

izombie:
All these loans with nothing to show for them.

It is high time we diversify and invest big time in mechanized agriculture. A welcome development at least with interest of 1% per annum.

Hmm..... let me just put it this way i sell my equipment to you on credit for 20 years and take 1% interest

But at what rate am i selling you is it competitive or my favorable rate because you will not take 4.5 billion at same time it will be gradually over period of 20 years

Not a good business it would have been better to invite tender a global bid for instrument over a period of 20 years and pay them as and when delivered that would have saved 1% and also best price
Or even better to invite industries herein Nigeria to set up plant for manufacturing farm equipment with incentives and tax benefits that way you create jobs and still get equipment
But i am not economic expert anyways so please its my personal opinion and no offence intended

pat1612:
Hmm..... let me just put it this way i sell my equipment to you on credit for 20 years and take 1% interest

But at what rate am i selling you is it competitive or my favorable rate because you will not take 4.5 billion at same time it will be gradually over period of 20 years

Not a good business it would have been better to invite tender a global bid for instrument over a period of 20 years and pay them as and when delivered that would have saved 1% and also best price
Or even better to invite industries herein Nigeria to set up plant for manufacturing farm equipment with incentives and tax benefits that way you create jobs and still get equipment
But i am not economic expert anyways so please its my personal opinion and no offence intended

You do not have any option here cos , first you can not produce it on your own and secondly You do not have the cash to procure those equipments at a goal

Not a bad deal.

But I hope those equipments won't end up in politicians farms cos those demons in high places are capable of anything.

Fonereporters:


You do not have any option here cos , first you can not produce it on your own and secondly You do not have the cash to procure those equipments at a goal

I Seriously Beg to differ! Nigeria and nigerians have been fabricating these items and more in our indegenous firms. I can reel like 10 companies that have this capacity. Then as the man you quoted rightly asked, "at what price are we getting them?"
Most likely they want to clear their obsolete machinery by shipping them to some african country at a good price with an interest.
Let them show us the individual rates, the equipment specification and the competitive price in the market, you will be suprised.

@pat1612
You dont need to be an economic expert to make perfect sense.
The agric minister in a bid to put in some good effort to this administration didnt think this out well.
Why borrow equipment we can fabricate/assemble? Why not set up agric equipment manufacturing companies thereby creating much more jobs.
Or are our engineering graduates only destined for oil companies?

I believe We can do it if the chinese can do it!

D hidden truth about dis loans giving to nigeria has not been told which I'd free trade.

How can our local manufacturers grow wen dey can export all Dia substandard product to nigeria at cheaper cost.

This govt and d previous govts don't fight nor represent d Nigeria pple.

So many problems facing us but instead of d youth of dis country taking a stand we get divided by d day with ethnicity.

We re much wiser Dan dis. We hv to think before we act.

It isnt even a financial loan per se. It is equipment given at a price fixed by the creditor. This will be in dollars. And we know what dollar is like now. What of in 10 years time?

Is the 1% is static or cumulative.