The Agriculture Development Farmers Association of Oyo State has urged the Central Bank of Nigeria to reduce the lending rate to boost food production.
The Chairman of the association, Salihu Imam, in an interview with The PUNCH, said a significant reduction in lending costs would catalyse agricultural expansion and enhance food security in the nation.
Imam declared, “Reducing lending costs to two per cent is not just a demand, it is a necessity for the growth of our agricultural sector. Farmers are the backbone of our nation, and affordable loans are the fuel that propels us forward.”
The Federal Government has instituted many initiatives to support farmers over the years, including the Agricultural Credit Support Scheme, which gives farmers access to loans at eight per cent.
The CBN had also disbursed N629bn to farmers at single digit in 2022 through the Anchor Borrowers Programme.
Imam argued, “Providing affordable loans is an investment in our collective future, ensuring food security and economic stability.”
He called for a reduction in the excessive cost of governance in Nigeria, with savings redirected towards agricultural investments.
He proposed that every local government should acquire tractors, hiring them out to farmers at subsidised rates.
“Alternatively, the government could distribute tractors to farmers’ cooperative associations, repayable over a minimum of five years,” he suggested.
Imam also highlighted the potential of coffee production, citing Oyo State’s plans to plant 2 million seeds/seedlings in the next three seasons.
He stated that the state was collaborating with key organisations such as the Cocoa Research Institute, Nigeria Export Promotion Council, and the West African Speciality Coffee Association to achieve the target.
