The Federal Government has said the N10.7 billion integrated rice milling machines procured by the Federal Government will be delivered in December, 2019.
Minister of Agriculture and Rural Development, Chief Audu Ogbeh, disclosed this Monday at the pact signing with MV Agro Engineers, suppliers of the farm equipment, in Abuja.
Ogbeh explained that the benefiting states would indicate interest as off-takers, make 10 percent down payment and express technical capacity to own and operate a mill.
The Federal Executive Council (FEC) in April approved N10.7bn for the establishment of 10 new rice mills in the six geopolitical zones.
The 10 participating states include Kaduna, Anambra, Kogi, Benue, Bayelsa, Niger, and Bauchi. Others are Kebbi, Ogun, Zamfara while the mills are expected to produce 100 tons of rice per day.
The Bank of Agriculture (BoA) is expected to take over the loan repayment in the next 10 years.
“As these people arrive, they will install these mills and the BoA will take over the loans repayment over a period of 10 years,” Ogbeh said.
Asked if the 18 months deadline could be reviewed upward, the minister noted that, “building machines is not cheap. It’s a scientific thing. These people say they may do it faster but we give them 18 months, so there won’t be issues for delays.”
According to him, there are about 16 existing large rice mills from the already procured 100 mills.
The minister added that 16 large machines would mill 100 tons of rice paddy daily while others could mill about 300 tons daily.
“Dangote just brought in 10 milling machines which will produce 1 million tons of rice per annum but there are smaller ones we gave out, about 200 mills of 10 tons and 20 tons per annum operating in villages and small corners equipped with the stoners.
“We are buying smaller mills and giving them out because the smaller mills produce more rice than the big mills added up but they are scattered all over the country. Virtually every state has small rice mills somewhere, Niger, Bayelsa, Benue, Taraba, Adamawa, Ebonyi, Katsina and Jigawa,” he stated.
He commended the contractors advising them to supply adequate quality spare parts.
In his remarks, the Managing Director, Bank of Agriculture, Kabir Mohammed restated commitment to ensure the project is successful while meeting the delivery targets.
He said the project financing would not be a challenge.
The Managing Director, Jamu Babba Dan’agundi, leader of the delegation commended the federal government for the gesture.
He promised to deliver the machines as scheduled.