• Frowns at exorbitant tariff on imported tractors
• Hired tractors now N205,000 per day
Nigeria’s dream of becoming an agriculture hub may not come to reality soon. This was the resolve of stakeholders who described government’s policies as counter-productive and hampering efforts of the sector players. One of the areas they identified as posing challenge is the exorbitant tariff placed on imported tractors, which has not only impeded investment of agro-entrepreneurs, but discouraged many who are planning to venture into farming.
One of the stakeholders, Nnaemeka Obiaraeri, who spoke out his anger against the Nigerian Customs Service (NCS) and the Federal Government on X, formerly Twitter, lamented that the cost of clearing a tractor is so exorbitant that many farmers have abandoned the idea of using them.
“You purchase a tractor for N33m, and you pay N15m to clear it, in a country that does not manufacture ordinary bolt,” he said.
Obiaraeri noted that as part of the massive agro revolution in the Southeast, they decided to embark on an entrepreneurial journey of bringing in tractors so as to shore up tech and mechanised driven agric practices in the Southeast.
“We’ve always said we want to diversify Nigeria economy from the current oil based export revenue to non export-based revenue earning. Agriculture is one of the lowest hanging fruit that can enable us diversify and create so many jobs in Nigeria.
“We are doing farming, we are not doing agripreneurship, that is why we have 72 million farmers in Nigeria, yet food inflation is at 38 per cent. Netherland, with1.6 million arable land mass and less than 200,000 farmers, yearly generates €122b euro agro revenue in their country and we can execute the same thing in the Southeast.
“Over 90 per cent of Nigerians are under 64 years, which is a good population of working people that we can utilise to create wealth, but for us to do it well, we must do tech mechanised driven agriculture. Since government is not willing to come on board, under what we classify as a mission community Diaspora private public initiative, we decided to intervene from the private sector angle to bring in tractor.
“It is very shocking in a country that does not produce bolt, a country that does not have any main significant manufacturing arrangement for farm equipment, you will spend N33m to import one tractor and you’ll pay N15m to clear it. It does not make sense, it’s madness.”
The Chief Executive Officer of TracTrac Mechanisation Services Limited, Godson Ohuruogu, who confirmed the development, regretted that the cost of clearing imported tractors in Nigeria is incredibly high—sometimes as much as 40 to 50 per cent of the tractor’s purchase price.
“When you add up port charges, import duties, and other logistics, it becomes a major burden. This creates a serious barrier to mechanisation. It discourages private investment, puts farmers under pressure, and ultimately works against our national goals to scale mechanised agriculture—especially when we urgently need to boost food production, cut down on manual labour, and improve overall efficiency in the sector.
“At TracTrac, we’ve been vocal about the need for government support to ease these challenges. We’re advocating for policies like duty waivers on tractors and essential parts, as well as incentives for local assembly. These kinds of reforms would lower costs, attract more investment, and make mechanisation more accessible for smallholder farmers.
“The current cost of renting tractors has significantly increased compared to two years ago. It’s important to clarify that tractors are typically hired per hectare or per day, depending on the service being provided. In 2023, the average rental rate was around N80, 000 per day, and by 2025, this has risen to approximately N205, 000 per day, which typically covers about 10 hours of work.”
This increase is driven by several factors, including rising fuel costs, inflation, higher maintenance expenses, and the increasing cost of spare parts.
While noting that the country is making some progress, he said it is still a long way off from where it needs to be. “Mechanisation in Nigeria is currently around 0.3 horsepower per hectare, which is far below the Food and Agriculture Organisation (FAO’s) recommended minimum of 1.5. This gap means most smallholder farmers still rely heavily on manual labour, which limits productivity and slows down growth in the sector.
“That said; we in the private sector are trying to step up in addition to the activities of the government towards this cause. TracTrac is using technology and the trained Mechanisation Service Providers (MSP) to connect farmers with available tractors, ensure proper usage tracking, and drive operational efficiency. These kinds of solutions are helping to close the access gap.
“But to truly move the needle, we need a stronger, more coordinated push. Government policy, infrastructure development, and private-sector innovation must work hand in hand to scale mechanisation in a sustainable and inclusive way. That’s the only way to build a modern, efficient farming system capable of meeting Nigeria’s food security needs,” he said.
