Ministry, CBN To Review Farmers’ Loan Tenor

The Ministry of
Agriculture and Rural Development (FMARD) and the Central Bank of Nigeria (CBN) have agreed to partner to review loan tenor for farmers from six to twelve months as part of the resolve of the emerging generation of leaders to uplift the nation.
The plan also includes Chief Executives of Commercial Banks in the country.
The Minister who made this known to newsmen in Abuja recently at a breakfast meeting which was organised by his ministry said the venture would ensure increased food production in 2014.
Adesina explained that the partnership would also reduce inflation and enable banks to reconcile modalities for seed and fertilizer supply chain.
He said one of the decisions reached sought to underscore the Federal Government’s appreciation for the contributions of the banks to the evolving agricultural revolution in the country.
According to him, the meeting also discussed and resolved some challenges concerning bureaucratic practices in the loans repayment process.
Adesina explained that so far a total amount of N20 billion was lent to farmers in 2013 as against N3.5 billion in the preceding year.
He said the increase was based on the confidence reposed on the farmers resulting from the institutional structures which were created in the form of value chains.
The Minister said such structures have done so much in creating and sustaining confidence in the value claims as the ministry was ready to reduce the risk of lending by banks to the agricultural sector.