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By Emmanuel Adeleke
Oyo State Government, in its effort to ensure access to reasonable interest rates for farmers and attract potential investors into the farming value chain, has provided N1billion loan facility to the State Agricultural Credit Corporation for farmers across the state.
Speaking during a media briefing at the Ministry of Information and Civic Orientation Film Theatre on Thursday, the Executive Chairman, Oyo State Agricultural Credit Corporation, Alh. Taofeek Akeugbagold said the present administration is committed to reforming the agricultural sector with notable programmes like the Sustainable Action for Economic Recovery (SAfER) among others.
He said this will ensure food security and cushion the effect of fuel subsidy removal by the federal government.
Akeugbagold said that the loan facility will focus on the small holder farmers, who bear the burden of feeding the teeming population.
“His Excellency, the Governor of Oyo State, Engr. Seyi Makinde has graciously approved the release of N1 billion under the Sustainable Actions for Economic Recovery (SAfER) programme, which is to be disbursed to the farmers in all the 33 local government areas of the state.
“They account for about 90% of the farmers population and this is responsible for about 95% of the aggregate food and fibre production in the state,” he said.
Akeugbagold said to access the loan, which will be disbursed and recouped by microfinance banks across the seven geopolitical zones in the state, each benefitting farmer must produce a guarantor, who is a civil servant on Grade Level 7 and above.
The chairman noted that the scheme would bring more stability to the agricultural sector and provide an enabling environment for the development of Oyo State farms and agricultural business.
Akeugbagold explained that the loan process, which is apolitical, will be disbursed to farmers who are duly registered with the Ministry of Agriculture.
Also, General Manager, Agricultural Credit Corporation, Mr. Emmanuel Ogundiran, explained that the corporation has divided the entire state into seven zones and intends to commence a sensitisation campaign in all the aforementioned zones very soon
“The Oyo State Government has recapitalised the corporation, we have received some funds and one of the mandates of the corporation is financing the agric value chain completely.
“The modality in giving out the loan is going to be exactly as enshrined in loan conditions of the corporation. We have set rules for giving out loans and for this programme, we are making use of microfinance banks which are governed by the Central Bank of Nigeria (CBN) regulations and also regulated by the bank and financial institutions body.
“The corporation is funded by a system of revolving accounts which were built up over the years. Moreover, considering the realities of the present time accentuated by the removal of fuel subsidy, which has severally impoverished the peasantry, the loan support programme cannot have come at a better time.
“The procedure for disbursement shall be unveiled at the subsequent town hall meetings with the farmers, which will take place across the seven zones the state has been divided,” he said