CBN ₦723m Loan Disbursed to Farmers

The Abeokuta branch of the Central Bank of Nigeria (CBN) has announced that 1779 farmers in Ogun State have received agricultural loans in 2021.

This was revealed by the CBN Abeokuta Branch Controller, Wahab Oseni, on Wednesday at the Ogun State Award for Best Farmer of the Year, 2021.

Oseni explained that the loans were part of the Agricultural Credit Guarantee Scheme Fund (ACGSF), created by Decree No. 20 of 1977 to ensure farmers get credit from banks.

He said the loans aimed to boost the availability of funds in the agricultural sector, and the beneficiaries would be refunded 50 per cent of the interest if they complied with the loan terms.

He said, “The fund’s objective is to guarantee up to 75 per cent of the net amount recovered from the collateral in case of default for loans given by lending banks for agricultural purposes.

“This is intended to increase the amount of bank credit to the agricultural sector. The scheme also rewards the beneficiaries by returning 50 per cent of the interest paid on the loan if they repay it fully within the specified period.

“The farmers’ role in ensuring food security and zero hunger is crucial in every country; we express our gratitude to our farmers.

“In 2021, the Development Finance Office, CBN Abeokuta guaranteed 1779 loans worth N723,111,000.00 from three (3) banks, consisting of two microfinance banks and one deposit money bank.

The winners of today’s award were selected by a committee using some criteria such as adopting best agricultural practices, keeping records, and using and repaying the loan timely, among others.”

Saka Dolapo was declared the best farmer of 2021 in Ogun State, while Onasanya Babatunde and Abosede Olowonisoro came second and third, respectively.

The Ogun CBN Development Finance Officer, Dr Oluwakemi Olukoya, congratulated the awardees and said food security was everyone’s duty.

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