Smallholder farmers in Benue, Nasarawa, Ogun and Edo states are set to gain access to affordable tractors, irrigation systems and other modern farming equipment following a new partnership between the Equipment Leasing Registration Authority and Heifer Nigeria aimed at boosting food production, strengthening agricultural value chains and enhancing Nigeria’s food security.

The two organisations signed a two-year Memorandum of Understanding, which will run from August 15, 2026, to August 14, 2028, under Heifer Nigeria’s flagship Naija Unlock Programme.

The development was disclosed in a statement released on Wednesday by the Head of Media and Corporate Communication of the Equipment Leasing Registration Authority, Adebola Sunday.

According to the statement, the initiative will expand access to agricultural mechanisation through flexible leasing and lease-to-own models, enabling smallholder farmers, cooperatives, women and young agripreneurs to acquire modern equipment without the high upfront costs associated with outright purchase.

Speaking during the signing ceremony, the Registrar and Chief Executive Officer of ELRA, Donald Wokoma, described the agreement as a major milestone in advancing agricultural financing and addressing one of the biggest barriers to increased food production.

He said the initiative would initially benefit smallholder farmers in Benue, Nasarawa, Ogun and Edo states, where the Naija Unlock Programme will be implemented, while providing a model that can be replicated across the country.

“This partnership demonstrates how equipment leasing can unlock opportunities for farmers, cooperatives, women and young agripreneurs in Benue, Nasarawa, Ogun and Edo states by providing affordable access to tractors, irrigation systems, processing equipment and other productive assets required to drive agricultural transformation.

“It also reinforces ELRA’s commitment to making leasing a catalyst for national development by connecting more Nigerians with the productive assets they need to succeed. We are confident that this collaboration will redefine how farmers and rural enterprises access equipment, ultimately driving productivity, job creation and economic prosperity,” Wokoma said.

Also speaking, the Country Director of Heifer Nigeria, Lekan Tobe, said the collaboration reflects the organisation’s commitment to empowering smallholder farmers through practical, market-driven solutions capable of transforming livelihoods and strengthening Nigeria’s food systems.

He said implementation would begin in Benue, Nasarawa, Ogun and Edo states under the Naija Unlock Programme, with the expectation that the model would be expanded to other parts of the country.

“At Heifer Nigeria, we believe that access to productive assets is fundamental to transforming agriculture and lifting farming families out of poverty. Through this partnership with ELRA, we are introducing innovative leasing models that will enable farmers, cooperatives, women and youth in Benue, Nasarawa, Ogun and Edo states to acquire the equipment they need to increase productivity, reduce post-harvest losses and build resilient agribusinesses.

“Together, we are creating pathways for smallholder farmers to move from subsistence to sustainable prosperity while contributing meaningfully to Nigeria’s food security objectives,” Tobe said.

According to the statement, the agreement provides for the joint development of affordable leasing and lease-to-own models covering tractors, power tillers, planters, weeders, threshers, solar-powered irrigation systems, renewable energy-powered agricultural equipment, processing machinery, storage facilities and cold-chain infrastructure.

It added that the initiative is expected to lower production costs, reduce manual labour, improve farm efficiency and bridge the financing gap that has long prevented many farmers from accessing modern agricultural machinery.

Beyond equipment financing, both organisations will implement capacity-building programmes covering agribusiness management, financial literacy, equipment operation and maintenance, enterprise development and asset management for farmers, cooperatives, leasing companies, rural enterprises, equipment operators, women and youth agripreneurs.

The partnership will also promote climate-smart agriculture through the adoption of renewable energy-powered equipment and sustainable farming technologies, while improving processing and storage infrastructure to reduce post-harvest losses and increase value addition.

Other areas of collaboration include expanding access to productive assets for cooperatives and rural enterprises, encouraging greater participation of women and youths in agriculture, strengthening agricultural value chains, supporting policy advocacy and research, and promoting the growth of Nigeria’s equipment leasing ecosystem.

The statement noted that beyond the four participating states, the initiative is expected to serve as a national model for demonstrating how equipment leasing can bridge the financing gap that has long limited access to modern agricultural machinery.

It added that by combining ELRA’s regulatory oversight with Heifer Nigeria’s development expertise, the partnership is expected to attract greater private sector investment in agricultural equipment financing while expanding opportunities for farmers to acquire productive assets through affordable leasing arrangements.

The partnership comes as the Federal Government continues to prioritise food security and agricultural mechanisation as key pillars of its economic reform agenda.

In recent months, the government has intensified efforts to increase domestic food production through improved access to finance, modern farming technologies and climate-smart agricultural practices aimed at reducing food inflation and strengthening rural livelihoods.

Agriculture contributes about a quarter of Nigeria’s Gross Domestic Product and remains the country’s largest employer, with smallholder farmers accounting for the majority of domestic food production.

However, limited access to tractors, irrigation systems and other modern farm equipment has continued to constrain productivity.

Development experts have increasingly identified equipment leasing as a sustainable financing model that enables farmers to access essential machinery without the prohibitive cost of outright ownership, thereby improving yields, reducing post-harvest losses and creating jobs across agricultural value chains.