NAN-AE-7
Loans
By Rabiu Sani Ali
Hadejia (Jigawa), Nov. 16, 2016 (NAN) The All Farmers Association of Nigeria (AFAN) in Jigawa has called on the Central Bank of Nigeria (CBN) to ensure timely disbursement of agricultural loans to farmers for the next cropping season.
The association also called for the review of the conditions of the loans to enable peasant farmers access the facility.
Alhaji Idris Mai-Unguwa, Jigawa chairman of the association, told the News Agency of Nigeria (NAN), on Wednesday in Hadejia, that timely release of funds would ensure effective utilisation of the facility.
He said the Anchor Borrower scheme of the CBN, initiated in partnership with consortium of banks, would enhance agricultural financing when diligently pursued.
Mai-Unguwa said that the call was imperative to enable farmers effectively utilise the funds and boost production.
He attributed the failure of the previous programmes to late disbursement, noting that most of the facilities given to farmers came at a wrong time, resulting in gross misuse of the money.
“The loans should be given to farmers at the commencement of the cropping or planting season, depending on the geographical locations of farmers.
“In a situation whereby you disburse money to the farmers at the end of the season; it is of no help and they may not be able to repay the loan,” he said.
Mai-Unguwa suggested that the banks should monitor farm activities to allow for appropriate disbursement of the loans.
He, however, said that the loan conditions to smallholder farmers in rural areas involved a cumbersome process.
He noted that the terms set out by the banks were stringent for peasant farmers in view of their low capital base, stressing that the banks have failed to take care of the needs of rural farmers.
“Smallholder farmers in rural communities could not meet the conditions to enable them access the facility.
“The facility favoured large-scale farmers, who represent a small fraction of the farming population. It is desirable to review the facility to enable more farmers to benefit from it,” he said.
The chairman commended the Federal and State governments over their farmer support initiatives and said such gestures will encourage agricultural activity.
NAN reports that statistics from the Jigawa Ministry of Agriculture showed that 36 groups each comprising 250 farmers had registered under the Anchor Borrower scheme in the state.
It also indicated that the government had spent N439 million on the implementation of the programme, and distributed fertilisers, seeds and chemicals on loans to the farmers during the past cropping season.
NAN reports that the Anchor Borrower scheme was a critical component of the agriculture transformation agenda of the Federal Government, aimed at enhancing farmer access to inputs and financing, encouraging agricultural mechanisation, processing and entrepreneurial skills. (NAN)
RSA/ECN/IS
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Edited by Emmanuel Nwoye/Ismail Abdulaziz