Management of Tractor-Hiring Entrepreneurship by Tractor Owners and Hiring Facilities Association of Nigeria

Abstract

This study assessed the management of tractor-hiring entrepreneurship by Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN). Two-stage sampling technique was used to select respondents. A checklist was used in an in-depth interview to elicit relevant information which was analyzed qualitatively. Various models of tractor-hiring operations of TOHFAN were identified. The loan guarantee system, the tractor tracking system as well as the business challenges were examined. Data were collected using a checklist in a focus group discussion and key informant interview. Findings revealed that TOHFAN guaranteed loans for its members through collaboration with relevant financial institutions and vendors. Currently (as at December 2016), the association operates with 262 tractors and 757 members across 21 states of the country since 13 years of its establishment. Four distinct models identified were: model involving hiring agent, model involving booking agent, model involving TOHFAN as booking agent, and direct owner-farmer transaction. Tractor tracking device was used to determine the location of each tractor belonging to members. High and unstable interest rate was the major challenge confronting TOHFAN’s management of tractor-hiring services. This study concludes that TOHFAN’s operational model is unique and therefore recommends that investors in tractor-hiring services should be encouraged (through creation of awareness by extension agencies) to emulate the TOHFAN example in tractor-hiring management. Models and operational strategies used by TOHAN (especially the tracking device) can be adapted by the public tractor-hiring services in order to ensure effective tractor-hiring management in Nigeria.