Market News

Nigerian tractor manufacturers and assembly plants have been counting their losses since the Federal Government announced importation of tractors from Belarus with a $250m vote, which is said to be a part of the $681.9m tractor deal.

The local manufacturers believe that had the FG voted such amount in a scheme with local manufacturers, that it would create not less than 40,000 jobs in Nigeria.

Ibifiri Bobmanuel, managing director of Bobtrack Nigeria Limited, one of the topmost manufacturers, told BusinessDay in Port Harcourt in the week that if the president had bought half from home sources, it would create such high number of jobs and in days, it would have impacted the gross domestic product (GDP) of Nigeria.

The FG had announced through the Ministry of Agriculture a double deal with John Deare in California and Belarus to supply various numbers of tractors and implements as well as set up a base in Nigeria including repairs and training of farmers.

The local manufacturers however complained that such deals would have required partnerships involving the locals.

The deal with Belarus is expected to yield 2000 tractors per year but Bobmanuel said Bobtrack is able to produce 6,000, adding that Nigeria’s annual need is at least 10,000 in the next 20 years.

He said every serious country will work with their local manufacturers to ascertain what they can produce, find out what the country needs, and how these local producers can scale up to meet up.

“For instance, our wish is to export to the US but we have not been able to do it because they do not want outsiders to flood their country with foreign tractors and fight their companies but they will help their manufacturers to go out and dominate their markets, and countries like Nigeria will fall to it. The US will give a long list of things you must do first. It is protectionism.

“So, what we have is where your country will not help you (the local manufacturer), but it will now go and help foreign manufacturers. We hope we get to the point where the government will know what to do to local manufacturers.”

Bobmanuel, who is the President of the Rivers Entrepreneurs and Investors Forum (REIF), advised the FG to change strategy. “If not, the local investors may become a case study to foreign investors. The local investors are usually a benchmark to foreign investors to decide whether to invest in Nigeria or not. If they see local investors doing well, they will dream big to come to Nigeria. On the other hand, if an investor sees that setting up abroad would make Nigerian government to come with Dollars to buy large numbers, why would they come to Nigeria?