Ibadan, Nigeria – In a significant move to bolster the agricultural sector, the Oyo State Government has allocated a substantial N1 billion loan facility to the Oyo State Agricultural Credit Corporation, aimed at benefiting farmers throughout the region.
This loan initiative, characterized by low single-digit interest rates, is set to enhance accessibility for farmers seeking to expand their agricultural enterprises. Moreover, it is anticipated to attract potential investors into the farming value chain, providing a win-win scenario for both the farmers and the agriculture sector as a whole.
During a recent press conference held at the Ministry of Information and Civic Orientation Film Theatre in Ibadan, Alh. Taofeek Akeugbagold, the Executive Chairman of the Oyo State Agricultural Credit Corporation, emphasized the commitment of the current administration to revamping the agricultural industry. Notable programs like the Sustainable Action for Economic Recovery (SAFER) are being implemented to secure food security and mitigate the repercussions of the federal government’s fuel subsidy removal.
The loan program primarily targets smallholder farmers who bear the responsibility of feeding the state’s burgeoning population. Alh. Taofeek Akeugbagold stated, “His Excellency, the Governor of Oyo State, Engr. Seyi Makinde, has graciously approved the release of One Billion Naira under the Sustainable Actions for Economic Recovery (SAFER) Programme. This fund will be disbursed to farmers in all thirty-three local government areas of the state, with the overarching goal of enhancing food security.”
He further explained that these smallholder farmers constitute around 90% of the farming population and contribute to approximately 95% of the total food and fiber production in the state, highlighting their crucial role in ensuring food supply.
“These farmers are predominantly located in rural areas with limited access to basic public amenities,” he added. The loan program aspires to bring stability to the agricultural sector and foster an enabling environment for the growth of farms and agricultural businesses in Oyo State.
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The loan disbursement process is expected to be apolitical, directed toward farmers duly registered with the state Ministry of Agriculture. Mr. Emmanuel Ogundiran, the General Manager of the Agricultural Credit Corporation, emphasized, “The Oyo State government has recapitalized the corporation, and we have received funds to finance the entire agricultural value chain.”
Ogundiran noted that the loan disbursement process would adhere to the established rules of the corporation, utilizing Microfinance Banks regulated by the Central Bank of Nigeria (CBN) and financial institutions bodies. He emphasized the timeliness of this program, considering the recent removal of fuel subsidies, which has exacerbated the financial challenges faced by farmers.
“For ease of administration, the Corporation has divided the entire state into seven zones and intends to initiate a sensitization campaign in each of these zones shortly. Detailed procedures for disbursement will be disclosed during town-hall meetings with farmers across these seven zones,” he explained.
When queried about whether individual farmers not affiliated with associations could apply for the loan, the General Manager confirmed that the loans would be extended to individual farmers, with no intention of solely supporting associations. This approach is designed to ensure that a broad spectrum of farmers can benefit from the loan facility, ultimately strengthening the agricultural landscape in Oyo State.
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