Ruma shut out of N60bn Agric Contract Details

[bayo4luv]

Abba Ruma, agriculture and water resources minister may have started to drop out of relevance following his lack of detailed knowledge of a N60 billion tractors and equipment contract agreement by a parastatal under his ministry. 

Ruma, who was supposed to sign the contract for the supply of 10,000 units of tractors, equipment and machinery worth N60 billion or $399,932,121.33 was not briefed of the details of the agreement between Nigerian Agricultural, Cooperative and Rural Development Bank Limited (NACRDB), a parastatal under his ministry and a Chinese firm, China National Equipment Import & Export Corporation (CMEC). 

To worsen the situation was the absence of key stakeholders like the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO), the organisation that warehouses Federal Government loans.  The Federal Government had last year initiated a commercial agricultural credit scheme for which N200 billion was approved for disbursement as loans to farmers under the scheme designed to guarantee food security in the country. N40 billion was also set aside for small farm holders across the country while loan to procure farm implements is a key component. 

The 10,000 units of tractors expected under the scheme are to be supplied by CMEC while NACRDB under the arrangement, is to make advance payment of 16 percent of the $399,932,121.33 and the 84 percent balance be paid over a period of 10 years.  Agriculture ministry is to provide 25 percent subsidy of the cost of the machinery and equipment to the Nigerian farmers.  Ruma, however, could not sign the Memorandum of Understanding (MoU) to seal the agreement as he was shut out of the details by NACRDB while other major stakeholders like CBN and DMO were also absent at the ceremony.

Source: Ruma shut out of N60bn agric contract details