The tractor market in Nigeria is small, but has the potential to be vast. Today, there are an estimated 20,000 tractors in Nigeria, with only 50% of these operational. Were Nigeria to have a tractor penetration per hectare comparable with Kenya, there would be 60,000 more tractors in the country. However, this has not happened because tractor vendors are focused mainly on selling to the central and state governments. Smallholder farmers cannot afford tractors, neither can members of tractor associations who should provide tractor services to farmers.

In 2013, Propcom Mai-karfi (PM) designed and commenced implementing an intervention focused at developing a private sector-led tractor market in Nigeria. The intervention supports tractor associations and lenders to develop relationships where the latter commits to lend if the borrower can meet certain criteria. Propcom Mai-karfi is facilitating increased understanding and agreement between the stakeholders (tractor vendors, lending banks and the Central Bank of Nigeria) to create tractor-financing loan products which will ensure that tractor association members acquire new tractors and that more smallholder farmers are able to access tractor services.

In 2014, PM successfully facilitated NGN3.4million in loans for 27 members of Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN) from First Cit Monument Bank (FCMB). Following the association’s commitment towards promptly meeting the bank’s monthly repayment plan, in 2015 FCMB disbursed an additional NGN227.8million in loans to 67 more members of TOHFAN.