BoI sets aside N10bn intervention fund to support agro-mechanization

THE Bank of Industry has set aside N10 billion intervention fund to support Agro-mechanization in the country, even as the bank signed a Memorandum of Understanding (MoU), with three international partners to assist in effective utilization of the fund.

Speaking at the signing of the MoU in Abuja on Wednesday, the Acting Managing Director of BoI, Waheed Olagunju the bank has in recent time come up with various programmes in support of agriculture, adding that various sum of intervention funds have been made available.

According to him: “The Agro-mechanization fund is N10 billion, which is the highest. Which means we have accorded a lot of attention to Agriculture because our industrialization must be driving by agriculture.”

He said the bank is committing the sum to help farmers with loans ranging from N10 million to N500 million, adding that depending on the absolving capacity of the beneficiaries, the money could be increase.

Olagunju said: “The three major partners we are signing MOU with today are largely drawn from the international community. GIZ is being backed by the German Government, Propcom, is largely being supported by the British Government, while GEMS is also a collaboration between the British Government and the World Bank.

“The sector which we are intervening is the Agricultural sector. These are the areas where we have the highest comparative advantage as a country. Our biggest assets is our population, human resources. Nigeria is among the 12 countries in the world that has population above a 100 million. Population can be an asset if it is productive, if it is unproductive it becomes a liability.

“We have tried at the Bank of Industry in recent times to come up with various programmes in support of agriculture. One of them is Argo-processing fund, which is N5 billion, we also have the fish farming, which is N1 billion fund and animal which is also N1 billion

“The Agro-mechanization fund is N10 billion, which is the highest. Which means we have accorded a lot of attention to Agriculture because our industrialization must be driving by agriculture.

“We a committing a lot of human resources, a lot of financial resources at the bank to this programme and we thank our development partners  for collaborating with us in this regard. The categories available under this programme are:Micro N10 million, Small Scale, above N10 million not exceeding N50 million,  Medium above N50 million but not exceeding N500 million.”

In the area of job creation, he said the intervention will create about 40,000 jobs; adding,  “we are hoping that about 40,000 jobs, direct and indirect would be created through this initiative.

“Depending on the response,  we ready to increase the fund size because as a developing financial institution, we are a policy institution, we are set up to support government initiative and programmes.”

He emphasized that Nigeria did not have shortage of fund at anytime to support such initiates but added that what has been lacking regrettably is bankable and valuable proposals to access the funds.

The BoI boss said: “We have never had shortage of money, or shortage of funds in Nigeria for MSME development. What we had are limited bankable proposals, limited viable proposals. For example 30 years ago, the World Bank made $270 million available to Nigeria; administered by the Central Bank, we are paying commitment fees and we want to return the money because MSME in Nigeria could not access the facility, they could not come up with bankable proposals to be finance under that scheme.

“BOI too had similar experience , we have resources but there are constraints, we don’t have enough bankable proposal coming up to us. That is why the collaboration is important here because under this framework, our development partners are already supporting some farmers and provider of Agro-mechanization equipment and they will be recommending them to us, those that are viable.”

He stated further: “Depending on the absolving capacity of beneficiaries we are ready to increase the fund.”

He  challenged the partners to come up with as many as bankable and viable proposals; entrepreneurs who are serious and genuine with good character.

The representatives of GIZ, Mr.Andrew Efisue, Propcom; Mr. Collins Apuaya and GEMS, Mr. Busuyi Okeowo commended the BoI for the initiative and pledged to ensure the success of the programme.

They, however, advised the BoI to ensure that the term of conditions to access the loans should be made friendly.