Local farmers get N1b Kwara/CBN loan

ABOUT 1,250 local farmers in Kwara state have been identified to benefit N1 billion loan in the first phase of Kwara/Central Bank of Nigeria 2018 anchor borrowers’ programme (ABP).

Speaking during the official flag off of the programme in Ilorin on Monday, Governor Abdulfatah Ahmed said that the new initiative by the state government to obtain N1billion loan from the CBN through the ABP platform was to further empower local farmers in the production of rice, maize, soybeans and cassava.

The governor, who was represented by the state commissioner for Agriculture, Mr Adegoke Bamidele, said that the programme would involve 500 maize farmers, 350 soybeans farmers, 150 rice farmers and 250 cassava farmers.

The governor said that the programme was established to create a linkage between anchor companies that are involved in the processing and smallholder farmers (shf) of the required key agricultural commodities.

ALSO READ: 2019 elections: Saraki as a big factor

“The programme thrust of the ABP is the provision of farm inputs in kind and cash (for farm labour) to smallholder farmers to boost production of these commodities, stabilise inputs supply to agro-processors and address the country’s negative balance of payments on food.

At harvest, the shf supplies his /her produce to the agro-processor (anchor) who pays the cash equivalent to the farmers’ account”, he said.

The governor charged the farmers to be conscious of their responsibility, saying that participating farmers must deposit a minimum equity requirement of 5 per cent in their accounts with designated commercial banks before loan disbursement.

“Loan granted to farmers must be repaid with the harvested produce that must be mandatorily delivered to the Anchor (state government) at designated collection centres in line with the provisions of the agreement that will be signed with you.

The produce to be delivered must cover the loan principal and interest”, he said.

He also said that the state government would not condone the misuse of the fund, or any attempt to embark on side selling of produce.

Side selling is a grievous offence that would attract severe sanctions such as the total prohibition from all CBN interventions, blacklisting and prosecution of such farmers.