Wednesday 12 September 2012
Banks still apathetic to agric lending despite NIRSAL OLUYINKA ALlw(]OI
esp,l!! various inlllllives of the Central Bank JrNfgeria (CB N) to
enswe comme:-c al banks lend conslS"enlty 10 small and medhun c : l lnmercial farmers, maJori y of the farmen ;m stilJ t e:lng turned down by tb~ txwb. Over thll "/elliS, measures such as mhrlru.tllv sec10ral
lending, "'811 ullural Credit Gwu-ant ~ Scheme. Cammefdal /4 grlcullure Credit Schem!. LnlereSI Drawback :>!ogr:mllDe (IDP) and the Olf'SI II! "enl Dill!,
Nigerian : ncer the Based RJsk ShaT "g As-Icultural ...,..". (NUISAl.~ """ boen empoye:l but !emilng to the ~llural sect, Ir Is still very low and IlWgnlflnmt. Even in some caw;s wjlt'n fanners.
though n<MDlan}'orthem. are able 10 pre!e:1I aollJIerals,. the
conunen:ial ballki stillium them down. Kolal'iole lIyedefl, owner of 5;:,110 Fanus and AgJicuhuml SeC:ri;es, is one 0( the many fanot rs bearing the hntnt of banu' apathy 10 lending. iJ.S be 5peab on lhe cballe!Iges 'K has been
Salin Parlos and Agricultural iervlce. specialist'S In poultry producdcn. feed and other inpuu' merc~al1dise a.nd some other areas .,fllvescodt 'Icoductlon. ~/t are also . onsWtanls and h~re helped 'lilIIJ'otber fam!s:oestabUsh
00 expand Wdrnpentions. be business wlS slarted fidalIy [1I~" ·.men I was ~t mun : lip my flCSl gree al the ulgos Siale
Unlven;ity, as a chemi.stry SludenL BUI as far back as 2003. I bad been 1n10 poultry production. startins with 20 birds. In 2006, I Increased stock 10 200. 1 graduated in 2008. Afu:t" my youth service, I work.ed brieny wilh a company and thenincreased my stock. to 400. Currently. we sud. aboUi 5,000 birds, sell them olf and SIarl with another seL I have 12 pmnanent staff and four consultants · vet doctors. and an accountant on my pay roll. But I have nIM!f I1!C:eIved lending [rom any bank. ~n though my company funds pass througb the banks. Currently. the company IlUllOY't'r is N42 million. Since Ihe past Ihree years, my company has been IryinS 10 acceu an agricullUr.tI loan. Even as the public rclations officer of PouJuy A.ssodation ofNlgerla (PANLAG), as an association we bave a!templed to access bank fadllties from an old
~ """""""" bank and a fo~lgn-owned bank In Nigeria. bUI we have not boen'h....
The response il thaI farmen do not perionn. But the real Issue Is thaI even with NIRSAL. banks stUl do nol wanl 10 lend 10 the agric seclor wiLh lower interest rales because they do nOI have the palleoce 10 recoup their money. When banb lend to traders. they can begin to recoup Ihelr money almolt Immediately. BUI pouIuy fanners. fUr Instance. need about sb: months' moratorium for the birds to grow and begin production. I evm SOl coDalel1ll from my uncle, a landed propeny with t:ef11fkate of occupancy
worth NIS million and the
lgUI. State gOtl'roment s",ys it I s I making moves to access additional Nl billloo. so as 11 I have N2 bUllon in t.ilJ! revolving loan being I03naged by a generation bank in the IbLLe ror the production orlice. This was dilclosed by
Abdul1ahl Kwotu, the state commissioner of agrlcuJture, over Ihe weekend. saying part of the loan was targeted at boosting the production of a11Jble crop.s.liveslock and fisheries. The state Kovernment had earlier received N 1 bUllon rrom the N200 billion fund and distributed same to 757 cooperative/rarm associations in the stale wtth a balance orN148.6
rl can Green Revolution Forum
eptember 26 10 2B dt!saibed as Ihe nexl mlle5l0ne in d~loplng African· led food securlry solutions. AI Che recenl G8 Summil, global leader5 including 21 African counlries:aooZlpm-atesectOr companies commined $3 bUllon 10 a New Al1iana: fUr Food Security and Nulritioo. launching the nen phase of the global food security erron 10 mise 5(1 miDkln people out of poverty over the nex! 10
!his yea.; hal been
ractlity I needed was jusl NS million. III the proposal I atbmitted with my business plan. I requesled for six months moratorium from an old generation bank thai wu supposed 10 be strong enough 10 handle such. 1he proposal shows that I can pay up In 18 months, allogether 24mondu. In the ~ branch of the banlt I was banltlna with before I moved 10 another brancn.themanagerron6ded
In metbal the CBN was a liar, knowlna Lhat commercial banks cannot lend to fannen with mareholders' money. Banb would rather prefer fannersmkethef"acilltymeant
for tradeu at 30 percent interest rate and plillctk:ally DO
moratorium. They expecI
the CBN 10 provide banks with lump sum or money If
they muS! lend to the agrit sector. Even when Ihe CBN did that. the facility was given 10 only big farms . Some of these so called big farm. tnded with the funds, Importing foods like chickens and claiming 10 be agrlbllSlneues. BUI real farmers can be easily Identified through credible alloclatloos like PouJlry Assoelallon or Niserla. RIce Growers Auoclation. Cassava Growers Assoclation. and 10 on. and the use or GPRS 10 cake the coordlnale dimensions and location ollndividual farms.
My buslneSl proposal clearly IpeUs OUI what I need the funds for. Apan rrom boosting my own fann operations. I Intend 10 eslabli5h an agicullwllllab.
The ~ason is thaI bUds are
supposed 10 lI8It laying by !he fourth month. bUI they do nOI SIan until the fifth or sixth month. Also, the yield is low. This Is because the quality of Ihe Ingredlents used In compounding feeds has reduced. I now have maSlers In chemlsuy. wllh my background. my team and I can analyse feed materials for farmers that wanl 10 compound feed or for those who buy already compounded feeds from manufacrureB. Thai way. If there are nutr1enlS Iaddng In the feed we can notify the farmer and when added. such leads 10 bOOIH In production a.nd reduced costs.. the issue is a
""'Y""",probIemlnpooluy producdonandfarmendfmy need this solution.
ligertmoves to increase rice production fund to N2bn NONSONDUMA~, Yl\
AGRA forum to convene global leaders
mllllon. which had aLready been approved fordJsbursement. Kwotu said the main aim of the government was to use the loan to Increase rice production In the state from 600,000 metric tons annually to I million metric tons 10 fill the gap tharWQuld be created by the planned ban on importation or rice.
He, however. said
that the loan scheme, a year revolving loan, was due for ~payment from some of the benefitting fanners wbo had staned repayment since March this year. The commissioner said Ihal OUt or N300 m II1I 0 n due for repayrnenl,. aboUi NlSO million had been repaid. representing SO percent. DOling that repayment respohse was higher
among rural farmers. saying the success of Ihe scheme In the state prompted the government to go ror another Nt billion loan to lake the amOUDt to N2 billion. To him. the scheme. since It was started last year, had increased the agricultural OUiput 10 over 30 percent as emphaslswasputon rice production.
This forum 10 be held in Arusha, Tanzania, Is therefore expecled Co sel the stnge for Africa's leaders 10 drive the Initiative by promoting lnvestmenls and policy supporl 10 IncreilSe agricultural productfvhy and Income growth for African farmers. During the forum , hOlted global leaders wtIl tackle leadership poll~ revolullonlslng AftlCln agrlcullural finance models, strengthening markets. and Iransforming Arritan agricuIlurt! through inrxMIlive puu>mhlpo.
The forum will bring wgethef Afrkan heads of state,
minisl:er!l, private agribusiness Orms, financial institutions, farmers. NGOs, civil sodelY organisations and sdenCisu lO dlscuss and demop conaete InveslDlent plam for scaling
agrlcullural development success in Africa. Tanzania wlU welcome notable guests including Bill &I MeUnda Gines Foundation, co-c.hair Melinda Giles, IFAD president, Kanayu Nwanze. A1dnwumi Adeslna, Nigerian minisler of agriculture. Gebisa £lela, Worid FoodPrize laJmKe, and raa lntematkmal presideotI CEO, ]ergen Ole tia.slesuMt. Following recenl discussions .. WEF Africa. the GB and David Cameron's IiWlger Summit. the African Green Revolution Forum will
continue to look: for ways to unite the power of the publk· and prlvale.seclors In the
"""""""'Y ...... ·Public· and private«CtOr leaders are Joining forces In ~WiJY510C!DSUM
a more food secure futtue; said Yal1l preskienl and co-chair of the forum. 'ergen Ole I-Iasleslad. sayins ·we haYe seen great success when players come cogether and Inves! nnueglcally - we hope to build on new momentum ond_~1D_
agricuJlurt! In Afrka."'