The Nigerian government has for long made it easy for their farmers to access farm loans to continue to foster an enabling environment for the farming sector.
In recent time, Nigeria has suffered inadequate agrotech industries and now it’s getting established to assist individuals who are willing to invest in the agricultural sector.
The government have worked to make this agro-tech available today, however, despite their effort, many farmers are finding it difficult to access to this loan.
After many research, we have fine supports of solving the problems of acquiring an agricultural loan.
Here are list of places you can get loans from the federal government.
1.CENTRAL BANK OF NIGERIA (CBN)
CBN is one of the assured places you can acquire your loan as a farmer at a low annual interest rate. It has been stated that in the last 10 years, the federal government of Nigeria has invested over N100b into agriculture and has made the fund accessible to all farmers through other banks like the bank of agriculture. As a rural farmer who has plans of getting a loan but doesn’t know where the CBN is there for you.
2.THE COMMERCIAL AGRICULTURAL SCHEME.
This program was established sine 2009, to boost the Nigerian agricultural sector; promote national food security; reduce credit costs in agricultural production.
Lots of commercial banks have access to this scheme as they provide adequate support to farmers who need loans with just a 9% interest rate.
However, these loans are only available to farmers who are into livestock, cash crop, food crops, poultry, aquaculture, processing, storage of agro-chemicals, etc.
3.MICRO SME DEVELOPMENT FUND
The MSME was launched in 2013 by the CBN with a share capital of N220 billion, about 90% was available to participating financial institutions-PFIs at only 2% for on-lending to MSMEs at a minimum interest rate of about 9% per annum.
This loan is only accessible by investors and farmers in the agricultural sector.
4.BANK OF AGRICULTURE (BOA)
This bank has been in existence since 1972, the bank of agriculture has been in service to the agricultural sector. The bank is owned by the Federal Government of Nigeria.
This loan is also restricted, not all farmers can have access to this loan only when you follow the following procedure.
- Have a business plan.
- Have 20%partial payments of the loan.
- Provide evidence for collateral
- And also have six-month relationship with the bank.
5.AGRICULTURAL CO-OPERATIVE SOCIETIES
Agriculture also has a cooperative society like All farmers associations of Nigeria (AFAN), Youth Empowerment in the Agriculture Program (YEAP) are responsible to disburse the loan to their members.
you can access that by applying to the bank with a latter headed of the co-operative society and you would also need to provide viability of the business plan.
These channels to access agricultural loans are available to most farmers who are ready and willing to grow their farming business into a bigger one.
If you are a farmer in Nigeria, and you lack funds for your farming business, I advise that you try applying for such loans.
In case of any questions, I advise you to drop them below for clarification. Thank you.