In Nigeria today, farming has become very difficult, and the interventions of the government appeared insufficient in reducing the struggles of the farmers.

More importantly, interest rate is so high that farmers are really groaning and lamenting about the situation.

Advertisements

With that rate, the Central Bank of Nigeria (CBN) appears not to be in agreement with the food security agenda of President Bola Tinubu. 

See Why Farmers Want CBN To Reduce Interest Rate

Advertisements

Farmers farmingPresident Tinubu has barely spent 5 months in office, with a new man in the helm of affairs at the Central Bank of Nigeria.

There has been a consistent rise in the price of food items and recent developments are showing that it is not just as a result of petrol subsidy removal.

Advertisements

The policies of the new government appear to be in disparity with the food security agenda and farmers are not happy.

Now, they want a reduction in interest rate to a bearable percentage.

A group of farmers do not think that the current direction the CBN was headed with its interest rate will ever reduce foodflation (rising cost of food items) and ensure food security.

As a result, they want a reduction in interest rate from the government.

Advertisements

Reduction In Lending Cost

The Agriculture Development Farmers Association of Oyo State, is asking the Central Bank of Nigeria (CBN), to reduce the lending rate for farmers.

Have You Read: Agriculture: See Reason Government Should Tackle Insecurity

Advertisements

According to the group, this will boost food production in Nigeria.

The Chairman of the Farmers Association, Salihu Imam, said a significant reduction in lending costs would catalyse agricultural expansion and enhance food security in the nation.

He said: “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.

A good example is the Agricultural Credit Support Scheme, which gives farmers access to loans at eight per cent.

Also, Through the Anchor Borrowers Programme, the CBN has disbursed ₦‎629 billion to farmers at single digit in 2022.

Imam argued that “providing affordable loans is an investment in our collective future, ensuring food security and economic stability”.

Reduce Cost Of Governance

He called for a reduction in the excessive cost of governance in Nigeria, with savings redirected to agricultural investments.

Also, 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.

You May Also Like: With Proper Input In Agriculture, FG Can Raise $50bn – FACAN

Furthermore, 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 Specialty Coffee Association to achieve the target.

See Why South Africa May Beat Nigeria As Africa’s Biggest Economy

Advertisements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.