Anambra can feed Africa - CBN

NaijaAgroNet:

The Central Bank of Nigeria (CBN) has commended the Anambra State government over what it tagged  the capacities of becoming Africa’s food basket, reports NaijaAgroNet.

The Director, Development Finance Department, CBN, represented by the bank’s Awka controller, Mr. C.M. Sokari assured the state and participants at the Anchor Borrowers’ Programme (ABP) in Anambra State, in Awka, that several intervention programmes have been floated by the government.

NaijaAgroNet recalls that CBN in collaboration with the Federal Government is diversifying the nation’s economy from crude oil.

The launch of the programme, he said would reposition agriculture in the country.

“To fund the programme, the CBN had set aside N40 billion from the N220 billion Micro, Small and Medium Enterprises Development Fund for farmers at a single-digit rate of nine per cent.

“…Nigeria, as we may all know, is a mjor rice producer with over 20 key rice producing states in the country most of which cultivate during both wet and dry seasons. Rice is one crop in which the country has comparative advantage to easily become self-sufficient, given the huge potentials that exist.

“The Central Bank of Nigeria has set the ball rolling and shown commitment to this programme and, therefore, expects that farmers and all relevant stakeholders in Anambra State would reciprocate by contributing their very best towards ensuring the successful implementation of this laudable programme,” he said.

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FG to establish N750bn agriculture fund

NaijaAgroNet:

The Federal Government disclosed plans to establish a N750 billion agriculture fund in collaboration with the Central Bank of Nigeria, reports NaijaAgroNet.

The Minister of State for Agriculture, Mr. Heineken Lokpobiri, affirmed this at the 2016 national summit of the Poultry Association of Nigeria (PAN), with the theme: “The Role of Poultry Industry in the Economic Revival of Nigeria” stated that the Federal Government is committed to diversifying the economy away from oil and revive the agricultural sector to boost the economy.

According to him, access to credit is one of the biggest challenges farmers are facing which is why the government has made this move to revive the agricultural sector. In addition the federal government is also talking with Islamic Bank which has agreed to provide about $ 2.5 million which will be rooted through Bank of Agriculture and Commerce Bank and at a single digit rate to finance different agric programmes.

He also disclosed that talks are being held with the Africa Development Bank (AfDB) for funding in the same sector.

“The present administration is committed to make agriculture attractive by making funds accessible and affordable as no business can survive with high interest rate charged by commercial banks. Already, there exist some funding from CBN that even the poultry farmers can access at an affordable interest rate of nine per cent but the contention is that nine percent is too high. We are trying to make credit not only accessible but available and affordable,” Lokpobiriemphasised.

In addition, he also promised to use all means at his disposal to harmonize taxes on farms – “and that since poultry products are food items, they should not be taxed.”

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FCTA boosts farmers with N500m agric loans

The Minister of State for Federal Capital Territory, (FCT), Mrs Olajumoke Akinjide said that the administration  has disbursed over N500 million to farmers under the agriculture loan scheme of the Central Bank of Nigeria (CBN) as part of measures to boost agriculture development and food supply in the territory.

Akinjide made this known to NaijaAgroNet during a visit by the management team of Bank of Agriculture (BOA) led by the Managing Director /Chief Executive Officer, Mohammed Santuraki, to her office in Abuja and stressed that Federal Capital Territory Administration (FCTA) has entered into a public private partnership (PPP) agreement with an Israeli Firm, SEC Equipment, to build an Agriculture Services and Training Centre in Abuja.

She informed the BOA boss, that in line with President Goodluck Jonathan’s Agricultural Transformation Agenda, the FCTA is committed to the development of viable agricultural entrepreneurship through provision of free technical expertise and farm subsidies and to also make the sector attractive to youths and women.

NaijaAgroNet noted that FCTA would partner with the Bank of Agriculture to grow the agriculture sector and ensured that the Agriculture Services and Training Centre, when completed and operational, would become a one-stop agriculture centre in Nigeria.

Santuraki, explained that the visit by the management team was to strengthen the partnership between the bank and the FCT Administration in the areas of agricultural financing for the benefit of farmers and agribusiness entrepreneurs in the capital territory.

“We have noted the giant strides that the Administration is taking to build a virile economy in FCT using agriculture as the foundation. Your effort is most appropriate at this time in the history of Nigeria when agriculture is occupying an important place in the Federal Government’s Transformation Agenda,” Santuraki said.

He explained that BOA had granted agriculture loans of over N50 billion to support the agribusiness in the last 10 years, created 6,000 enterprises, six million direct and indirect jobs and added that the bank  is in a better position to manage funds earmarked by FCTA for agricultural development and poverty alleviation in the FCT.

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Nigeria, USAID sign MoU, offers huge lending potentials in agric sector

The Federal Government of Nigeria and United States Agency for International Development (USAID), today, Thursday in Abuja, signed a Memorandum of Understanding (MoU) on Nigerian Incentives-based Risk Sharing system for Agricultural Lending (NIRSAL).

Confirming this to NaijaAgroNet, the Special Assistant on Media and Strategy to the Minister of Agriculture, Dr. Olukayode Oyeleye, said that the MoU involved Federal Ministry of Agriculture and Rural Development (FMARD), the Central Bank of Nigeria (CBN) and USAID.

In his remarks at the ceremony, the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, was quoted as saying the MoU will play a significant role in reformation going on in the sector, which is in line with President Jonathan’s transformation agenda and in order to make the agric sector attractive to lending.

Dr. Adesina, also said that the implementation of the MoU would address the issue of low lending rate to the agriculture sector, stressing that the effort would further get the banks to lend to the farmers as it would reduce the risk of lending.

“NIRSAL can unlock about N300 billion into the sector but we have to embark on significant reforms that can make the sector attractive to lending,” he was quoted as saying in a press statement endorsed by Dr. Oyeleye and made available to NaijaAgroNet.

Additionally, he said the MoU provides risk mitigation, financing, trading, and other strategic assistance to agribusiness, a programme which was launched in July 2011 in Abuja.

In his part, the CBN Governor, Malam Sanusi Lamido Sanusi, said the MoU was a landmark achievement of the apex bank in its effort to ensure enhanced agricultural sector in the country.

Sanusi noted that commercial banks, with the recent development, would lend to farmers without much losses as the incentive would go a long way to reduce the risk in business.

NIRSAL,: he said, will help the banks to diversify; and the banking industry cannot develop on a sustainable basis unless it locks itself into production.

“So, we say let’s go to agriculture, manufacturing, SMEs and also into financial inclusion and development which is central to financial stability,” the CBN governor said.

Sanusi further said that the apex bank would meet with the managing directors of banks and the minister of agriculture to evaluate the implementation and the progress so far made. Pointing out that the sector had made progress as it accounts for four  per cent of banks portfolio as against one per cent in the last four years.

“We save more money with what the ministry is doing with staple crop process zones, reforms of fertiliser regime, research and development of high yielding varieties (of crops), the whole process of standardisation and commodity exchanges:  these are  critical and necessary steps to take  and pursuits to execute before banks can lend to agriculture,” Sanusi said.

He was optimistic that in the next one year, there would be revolution in the sector with the introduction of NIRSAL.

USAID Administrator, Dr Rajiv Shah, observed that the agreement would equally make agriculture a source of wealth creation in Nigeria, adding that 70 per cent of farmers in the country lack access to credit facility.

He expressed hope, however, that the MoU would provide credit guarantee of about 100 million dollars of agricultural credit to Nigerian farmers.

“We will guarantee that the agricultural sector will pay that loan back to banks. So they will have the courage and conviction to lend the loan to the farmers,” Shah said, emphasizing that the government of the United States was aware of some of the works the Nigerian ministry was doing in the agricultural sector.

As said by Shah, USAID has the markets initiative on rice, cocoa, sorghum and maize, adding the agreement could help develop their value chain programmes.

NIRSAL, NaijaAgroNet recalls, was established to spur additional financing for agriculture lending based on its experience with various guarantee programmes, including USAID’s development credit authority.

Remmy Nweke 
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