The Brazilian Ambassador to Nigeria, Ricardo Guerra de Araujo, has said Brazil will pump in over 1 billion dollars into Nigeria’s agricultural sector.
He said that an agreement between Brazil and Nigeria on that would be concluded by the end of October.
The ambassador spoke on Thursday, at a dinner to sensitise Nigerians about an agriculture programme – Agritech Nigeria – organised by the Osun Government.
According to him, Brazil would help to transform Nigeria’s agriculture with the fund by establishing tractor assembly plant in Bauchi State.
He pointed out that the continual use of tractors and modern technology for farming in Nigeria would increase productivity adding that mechanised agriculture would strengthen value addition, food systems development and other opportunities for farmers.
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Guerra de Araujo posited that mechanisation of agriculture would minimise hard labour and labour shortages and improve timeliness of agriculture operations.
According to him, it will also improve effectiveness in the use of resources, enhance market access and help in assuaging climate-related risks.
Furthermore, he said it would keep the youths busy because they will be employed, and create development in the area where the plant is established.
He expressed confidence that the package proposed by Nigeria’s Ministry of Agriculture and Rural Development would move Nigeria’s agriculture sector forward even as he revealed that the project to be financed by the Brazilian Exim-Bank would come in three phases while the Central Bank of Nigeria would make available concessional resources through local banks.
According to the envoy, the proposed term of financing is 13 years including 10 years of repayment and two years of grace.