The Federal Government of Nigeria has revealed plans aimed at providing interest-free loans to farmers in the country. This was disclosed by the Honourable Minister of Agriculture and Rural Development, Sabo Nanono, who stated that his ministry would work with the Central Bank of Nigeria (CBN) in providing the loans.
According to a report by PUNCH, the aforementioned plan was revealed by the Minister while receiving the 2020 Wet Agricultural Performance Survey on October 18, 2020. The Minister revealed that the survey had shown that effective input subsidization would accelerate productivity in the agricultural sector.
Nairametrics had earlier reported plans by CBN to provide interest-free loans to MSMEs affected by the pandemic, with about 1.1 million farmers set to benefit from this largesse.
What they are saying
Commenting on the latest development, Nanono said, “The ministry would support the farmers with agricultural inputs and zero-interest loans, through the Central Bank of Nigeria and other financial institutions to mitigate the effect of COVID-19 and the recent flooding in Kebbi, Jigawa and Kano States.’’
He urged farmers to intensify efforts and focus on achieving more successes during the dry season farming in order to cushion the losses caused by the pandemic.
Why it matters
The recent announcement is a step in the right direction as it will help boost output in the agricultural sector, ensure food security, boost farmers’ morale, and contribute immensely in boosting farmers’ income. In addition, this gesture can also go a long way in driving financial inclusion, especially in rural areas.