[size=14pt]Banks disburse N30b loans to farmers[/size]

Farmers have started accessing single digit loans from Deposit Money Banks (DMBs) in the country, [size=13pt]it was learnt yesterday. Some of the seed companies that are already benefitting from the N30billion scheme include: Savannah Seed & Livestock Limited, Seed Project Company Limited, Manoma Seeds Nigeria Limited, Nagari Seeds Nigeria Limited and Da-All Green Seeds Limited.[/size]

Eleven banks have so far finalised participation in the scheme. They are Access Bank Plc, Union Bank Plc, Sterling Bank Plc, FirstBank Plc, UBA Plc and Zenith Bank Plc. Others are Diamond Bank Plc, GTBank Plc, Oceanic Bank Plc, Ecobank Nigeria Plc and Stanbic IBTC.

This initiative is in line with the Federal Government’s effort at boosting economic development through funding support for the agric sector. It is in furtherance to the execution of a tripartite Memorandum of Understanding (MoU) by the Federal Ministry of Agriculture and Rural Development in partnership with the Federal Ministry of Finance and Deposit Money Banks (DMBs) on November 29, 2011 to provide N30billion funding for the agricultural Input – fertiliser and seeds for the 2012 farming season.

Speaking on this development, the Co-ordinating Minister for the Economy and Finance, [size=13pt]Mrs. Ngozi Okonjo-Iweala, said: “This shows that when we say we will deliver, we are serious. This innovative plan will get seeds and fertiliser into the hands of farmers directly and help boost food production.” She added: “Nigerians will see the results where it matters in their pockets and on their dining tables , ”[/size]

Following the execution of the landmark funding agreement with the banks, the Federal Government through the Debt Management Office (DMO) of the Federal Ministry of Finance has issued sovereign guarantees to the banks securing 70 per cent of the principal of loans granted by participating banks thus granting agro-dealers access to funds required for successful take off of the current administration’s Agricultural Transformation Agenda.
This is consistent with President Goodluck Ebele Jonathan’s 2012 budget speech declaration, which emphasised the administration’s commitment to economic growth through the development of the agricultural sector.
The Finance Minster said: “This shows that when we say we will deliver, we are serious. This innovative plan will get seeds and fertiliser into the hands of farmers directly and help boost food production. Nigerians will see the results where it matters - in their pockets and on their dining tables .”
In his remarks the Minister of Agriculture and Rural Development, Dr Akinwunmi Adesina, noted: “The Federal Government’s Agricultural Transformation Initiative would empower Nigerian farmers, create millions of jobs as well as result to huge savings in foreign exchange.”
On the initiative, Mr Ola Richards, Vice-President of Seed Dealers Association of Nigeria, said the association is extremely grateful to the Federal Government for fulfilling its promise by solving the perennial problems faced by seed dealers and farmers.

The Group Managing Director of Access Bank Plc, who is also the Chairman of Bankers’ Committee Sub-Committee on Economic Development, said: “The agricultural input financing deal shows the Banking sectors commitment to act as a patch to the Federal Government of Nigeria in the transformation of the Nigerian economy. He commended President Goodluck Jonathan, the Honourable Minister for Finance, the Honourable Minister for Agriculture and the CBN Governor for providing the visionary leadership that has enabled this landmark initiative be concluded.

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