The Bank of Agriculture (BOA) and the Nigeria Cassava Growers Association in Abuja has signed an agreement following the N3 billion set aside by the federal government to assist the farmers to acquire modern implements.
The Managing Director of the Bank, Dr Mohammed Santuraki, said the agreement was the outcome of the dialogue that had been ongoing between the bank and the farmers association.
Santuraki who was represented by Executive Director, Wholesale Finance of the bank, Mr Waziri Ahmadu, said both parties had agreed on modalities for the association to access the loan through mutual partnership.
“The bank has worked out appropriate loan processing procedures that will ensure smooth and timely packaging of loans, so long as applicants meet the bank’s requirement. The interest rate pegged at 12 per cent would be at the discretion of the Central Bank of Nigeria and Nigeria Incentive-based Risk Sharing for Agricultural Lending, he said.
NaijaAgroNet gathered that the bank has been in partnership with the bank since 2008 when it set aside N200 million for disbursement to its members to cultivate cassava, while the Flour Millers Association of Nigeria also established the Cassava Endowment Fund and domiciled it with the bank.
Earlier in his speech the Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, commended the association for their dedication in its dealings on matters relating to agriculture and stressed that the signing of an agreement between the Bank of Agriculture and the Nigeria Cassava Growers Association in Abuja would enable farmers to access loan through the bank for mechanised farming in cassava.
The President of the association, Mr Segun Adewumi said it would cultivate one million hectares of cassava in the 2013 planting season and pledged the resolve of members of the association to repay the loan on schedule.
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