Mechanization in Nigeria: What needs to be done to stimulate demand and support market growth?

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September 18, 2019 - Hiroyuki Takeshima<H.Takeshima@cgiar.org> and Adam Kennedy<a.kennedy@cgiar.org>

Hiroyuki Takeshima and Adam Kennedy, 2019. Mechanization in Nigeria: What needs to be done to stimulate demand and support market growth?, Food Security Policy Research Brief 98, East Lansing: Michigan State University.

Key Policy Recommendations

  • Rural wages are increasing due to non-farm job growth, food prices remain high, and complementary technologies are being used that should support a growing demand for mechanization, though it is currently limited.
  • Investments in R&D can support farm intensification and improve demand for mechanization as will research on implements and machinery best suited for local use.
  • Reducing transaction costs can make machines more readily available, but there are still market inefficiencies that should be addressed through targeted investments beyond subsidies.
  • Supporting better business models that improve the efficiency of tractor hire services can help address farmer demand while stimulating private sector investment in the sector to address access in underserved areas.

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