The All Farmers Association of Nigeria (AFAN) has advised farmers to develop agri-business proposals to access the ₦200 billion Central Bank of Nigeria’s (CBN) intervention fund.
The Lagos State Chairman of the association, Mr Femi Oke who gave the advice in an interview with newsmen recently in Lagos said the fund has been available, however, farmers and agribusiness owners were not utilising it.
Oke disclosed that the fund was an avenue for farmers to develop their productivity through the use of modern technologies.
“We are happy with the intervention fund by the CBN being disbursed through commercial banks. Although the fund has been in existence, but farmers are not taking full advantage of it. All they need to do is forward a credible business proposal through any commercial bank.
“The fund repayment plan is at a single digit interest rate which is very good because farmers cannot deal with double digit interest rate,” he said.
The chairman, however, called on the Federal Government to advise commercial banks to desist from collecting or making other charges, which discourage farmers from accessing the fund.
He alleged that the banks were making the process too difficult for farmers thereby scaring them away.
It will be recalled that the CBN, in collaboration with the Federal Ministry of Agriculture, introduced the Commercial Agriculture Credit Guarantee Scheme (CACS) in 2009 to finance agriculture value chain. The value chain begins from input supply to cultivation and finally to marketing.
The CACS was originally introduced to fast- the development of the economy through credit facilities at a single digit interest rate.
Report has it that a farmer is entitled to ₦5 million and above from the CBN intervention fund.
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