The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, on Thursday announced the expansion of loan tenor to farmers from six months to 12 months.
This is to enable bankers reconcile the transactional ends of the seeds and fertilizer supply chain as well as give sufficient time to reconcile the loan transactions in the transition from dry season to wet season farming.
Dr. Adesina announced this in Abuja during a breakfast meeting attended by the Central Bank Governor, Mallam Sanusi Lamido Sanusi, and the Chief Executive Officers of the Agriculture friendly banks.
The Agriculture Minister said he called for the meeting to enable him convey the immense gratitude of the Federal Government on the contributions of the invited banks in the ongoing revolution in the sector.
Adesina hinted that the total amount lent to farmers in 2013 so far has been N20 billion as against N3.5 billion in the preceding year, adding that this expression of confidence in the farmers came as a result of creation of institutional structures in the form of value chains, which have done so much to create and sustain confidence to fix the value chains.
He said the government will continue to reduce the risk of lending by banks to the agriculture sector.
The Minister thereafter named the banks that have greatly supported the sector as Access Bank, Diamond Bank, Enterprise Bank, FCMB, Jaiz Bank, First Bank and Mainstreet Bank. Others are Sterling Bank, UBA, Unity Bank, Wema Bank, Zenith Bank, Union Bank and Bank of Agriculture.
Dr. Adesina said that the registration of farmers, which started in 2012, has by 2013 reached 4.2 million farmers directly with electronic wallet scheme, adding that this meant about 20 million people have been impacted by the GES programme of the Federal Government.
The Minister also attributed the decline in inflation to the slow rate in the increase of food prices and the CBN’s monetary policy.
He said: “Inflation is coming down in Nigeria for the first time since 2008 and that is a remarkable thing.
“This is happening because the CBN is doing a fantastic job in terms of monetary policy and the fact that agriculture is actually expanding in this country.
“The decline in inflation largely is also attributable to the slow rate in the increase of food prices.
“The recent harvest continues to contain food prices.
“That is to say farm harvest is also doing wonders.
“So, basically, you get CBN and agriculture working, and that is why you are finding that inflation is going down as fast as it is, which is the fastest rate since 2008.”
Sanusi, who was represented by the Deputy Governor in charge of Financial System Stability, Dr. Kingsley Moghalu, said it is remarkable that in the last one year or two years, people have seen lending more to agriculture and what the CBN did in contribution to this was to de-risk lending to agriculture.
He said this was because the risk factor has kept banks away from lending to the agriculture sector.
As he further explained: “We felt that if we could help to de-risk the whole process that this whole question of lending to the agric sector can be seen on a commercial basis. NIRSAL is a different approach to development finance. It is a market based approach. Agric is no longer about development. Agric is a business.”
FG expands loan tenor to farmers for increased agro business in 2014
The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, on Thursday announced the expansion of loan tenor to farmers from six months to 12 months.
This is to enable bankers reconcile the transactional ends of the seeds and fertilizer supply chain as well as give sufficient time to reconcile the loan transactions in the transition from dry season to wet season farming.
Dr. Adesina announced this in Abuja during a breakfast meeting attended by the Central Bank Governor, Mallam Sanusi Lamido Sanusi, and the Chief Executive Officers of the Agriculture friendly banks.
The Agriculture Minister said he called for the meeting to enable him convey the immense gratitude of the Federal Government on the contributions of the invited banks in the ongoing revolution in the sector.
Adesina hinted that the total amount lent to farmers in 2013 so far has been N20 billion as against N3.5 billion in the preceding year, adding that this expression of confidence in the farmers came as a result of creation of institutional structures in the form of value chains, which have done so much to create and sustain confidence to fix the value chains.
He said the government will continue to reduce the risk of lending by banks to the agriculture sector.
The Minister thereafter named the banks that have greatly supported the sector as Access Bank, Diamond Bank, Enterprise Bank, FCMB, Jaiz Bank, First Bank and Mainstreet Bank. Others are Sterling Bank, UBA, Unity Bank, Wema Bank, Zenith Bank, Union Bank and Bank of Agriculture.
Dr. Adesina said that the registration of farmers, which started in 2012, has by 2013 reached 4.2 million farmers directly with electronic wallet scheme, adding that this meant about 20 million people have been impacted by the GES programme of the Federal Government.
The Minister also attributed the decline in inflation to the slow rate in the increase of food prices and the CBN’s monetary policy.
He said: “Inflation is coming down in Nigeria for the first time since 2008 and that is a remarkable thing.
“This is happening because the CBN is doing a fantastic job in terms of monetary policy and the fact that agriculture is actually expanding in this country.
“The decline in inflation largely is also attributable to the slow rate in the increase of food prices.
“The recent harvest continues to contain food prices.
“That is to say farm harvest is also doing wonders.
“So, basically, you get CBN and agriculture working, and that is why you are finding that inflation is going down as fast as it is, which is the fastest rate since 2008.”
Sanusi, who was represented by the Deputy Governor in charge of Financial System Stability, Dr. Kingsley Moghalu, said it is remarkable that in the last one year or two years, people have seen lending more to agriculture and what the CBN did in contribution to this was to de-risk lending to agriculture.
He said this was because the risk factor has kept banks away from lending to the agriculture sector.
As he further explained: “We felt that if we could help to de-risk the whole process that this whole question of lending to the agric sector can be seen on a commercial basis. NIRSAL is a different approach to development finance. It is a market based approach. Agric is no longer about development. Agric is a business.”
Trending
- MURIC to Minister Uju: Get justice for molested nurse
- UBA: Why our 75th anniversary is dear to us — GDMD
- God will rescue you, by Gabriel Agbo
- Fidelity Bank renovates Nasarawa PHC clinic, donates water facility
- Fidelity Bank distributes food packs to families in Keffi
- Illusive politics: What is to be done, by Salihu Moh. Lukman
- Tinubu condoles with Iran over death of President Raisi, others in helicopter crash
- Students loan: NELFUND speaks on first beneficiaries