Association Bemoans High Interest Rate

The African Cashew Alliance (ACA) says the 20 per cent interest charged by banks on agricultural loans cannot yield the desired growth in the nation’s agro-business.

An Executive Committee member of the alliance, Mr. Tola Faseru, made the assertion in an interview with newsmen in Lagos recently.

Faseru said that the cost of getting funds for agriculture in Nigeria was very high. According to him, the development is not favourable to the Federal Government’s plan to revolutionalise agriculture as the country’s economic nerve.

He said that agriculture could not work on the basis of 20 per cent interest rate in the country. “Don’t forget we are in a global economy. “For me, agriculture is a sector that has to be supported because it provides jobs for over 70 per cent of our people, of course the rural population, the women and the youths.

“So something needs to be done and I encourage the finance sector to support agriculture.’’

Faseru said that the only way farmers could increase productivity and self-sufficiency in the sector, was to ease access to bank loans.

He said that the association was working with the Minister of Agriculture and Rural Development to look at ways to ease farmers’ access to such loans. ·

“Financing is very important for our farmers. One of the things that we are doing, we have spoken to the Minister of Agriculture and Rural Development and we are looking at ways of making finances accessible to the farmers.

“When you are talking about interest rates from the banks, it’s about 15, some 20 per cent.’’  Faseru said that rather than depending on the local banks and government, the association was also sourcing funds from other international bodies. He said that the facilities were obtained at low interest rates.

According to him, other countries, particularly in Asia and parts of Africa, which have done well in agriculture, have received various forms of support from international organisations. Faseru identified such international organisations to include the World Bank, the UNDP, the UNICEF, the International Finance Cooperation (IFC) and the African Development Bank (ADB), among others.

He said that the association planned to provide the inputs like fertilisers and seedlings to the farmers across the country.

According to him, farmers will also be trained on how to handle production of cashew, particularly on the post-harvest activities in 2013.

Faseru said that the measure would assist the cashew farmers to improve the quality and reduce the wastages.

“This will help them to improve their quality and reduce the wastages, which we had last year. “Of course, it will also improve the international rating of  Nigeria’s cashew.’’ He stressed the association’s resolve to establish many processing factories this year.