Calls for restructuring of Bank of Agriculture intensified

The Farmers Empowerment and Development Association of Nigeria (FEDAN) has said that restructuring the Bank of Agriculture (BoA) would be beneficial to agricultural development and aid farmers access to loans. The National President of the association, Mr Olusola Adepomola, told the News Agency of Nigeria (NAN) in Lagos that commercial banks were not accommodating farmers […]

The Farmers Empowerment and Development Association of Nigeria (FEDAN) has said that restructuring the Bank of Agriculture (BoA) would be beneficial to agricultural development and aid farmers access to loans.

The National President of the association, Mr Olusola Adepomola, told the News Agency of Nigeria (NAN) in Lagos that commercial banks were not accommodating farmers enough to promote their commercial viability.

Adepomola said that the conditions given to farmers by commercial banks before they could access loans were too high, leaving the farmers with no other choice but to rely on self-sourcing.

“We all know agriculture is capital intensive, if farmers do not have enough money to go into commercial farming, there will be problems.

“There has been talks regarding diversification, food sufficiency, food security and non-oil exports and others; if we do not tackle the issue of funding, then we are only paying lip service.

“Let the Federal Government restructure the BoA so that they can adequately release funds to deserving farmers; commercial banks are not helping us.

“When a farmer gets a loan at over 25 per cent interest rate, how will that business survive? For agribusiness to thrive, we need funds and at single digit interest rate,” he said.