Poultry Farmers Reject Conditions For Loans Disbursement

Poultry farmers in Abia have rejected the conditions for the disbursement of the N1 billion agricultural loans being processed by the state government for its farmers.

Mr Uzomba Ekwuruibe, the Chairman of the Poultry Farmers Association of Nigeria (PFAN), Umuahia branch, told newsmen in Umuahia on Thursday that the conditions attached by the bank were stringent.

The state government had signed a memorandum of understanding with First Bank Nig. Plc, Umuahia branch, for the disbursement of the fund.

Mr Silas Akajiemeli, the Head of the agriculture desk in the bank had during a meeting with the farmers read out major conditions for the farmers to access the loans.

Some of the conditions were that the loans would be given at once as inputs and not cash and that they would attract single-digit interest payable upfront.

Ekwuruibe faulted the modalities worked for the repayment, describing them as being toward the interest of the financial institution and detrimental to the farmers.

“The modalities for the disbursement are such that the bank, through Michael Okpara University of Agriculture, Umudike, will disburse inputs instead of cash.

“We have expressed our doubts because loans are given in cash and in tranches instead of disbursement in a single swoop.

“The danger is that if the inputs have defect, the farmers will not be able to repay the loan and the bank will come after them,” he said.

Ekwuribe argued that it would be better for the farmers to be given cash in tranches so that they would bear whatever defect that might arise in the course of the exercise.

“If they insist, we may go along with them but if anything happens to the contrary they should not hold any farmer responsible for not being able to repay,” he said.

He, however, commended the state government for “its bold steps” to ensure that farmers in the state benefited from the facility like their counterparts elsewhere.