This is a welcoming and enhanced development from the BOA Nigeria, a food-rural development and finance initiative which has been in existence for over 50 years now.
The Bank of Agric is jointly owned by the CBN and the Federal Government of Nigeria but wired under the supervision of the Federal Ministry Of Agriculture, Nigeria.
As all efforts to access the CACS agro funds from the two financial institutions, i.e UBA & First Bank Of Nigeria approved by the CBN last two years to disburse the $1.3bn to agro farmers are weakened by too much rigorous and unfriendly banking conditions, stipulated as a prerequisite for granting individual farmer loan access to a minimum of N200m each.
Small scale farmers are only aware of such funds but never get access to them, and now somehow watched as these banks dangled carrots away from them and to some other giant farming enterprises in the country; imposing tough conditions that cannot be met by the small scale farmers as these financial institutions made it clear that each farmer must have fully operational and functional investments in the agro sector worth at least up to N300m.
And It may be interesting to know what initially attracted the small-scale farmers in the first place was the single-digit interest rate attached to it and not the knowledge of the fund’s availability and release.
And so if small scale farmers must persist in securing agro loans to grow and expand their agric businesses, they should look elsewhere and deploy other available opportunities and options tailored specifically for them, options like; the supports from cooperative society, unions, and the bank of agric with her ever dynamic nationwide branches.
The only condition set aside by the bank of agric through her microcredit agric & collaboration package is that loan seeking farmers should first open and maintain a minimum customer’s saving account relationship period of at least 6months with them.
And only then, they will be granted free access to credit facilities upon a prior down payment of 20% of the proposed loan they initially crave.