The Agriculture Development Farmers Association of Oyo State is advocating for a reduction in lending rates by the Central Bank of Nigeria (CBN) to stimulate food production in the nation.
Salihu Imam, Chairman of the association, emphasised the importance of significantly lowering lending costs to propel agricultural expansion and strengthen food security in the country.
Imam stated, “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.”
While the Federal Government has introduced various initiatives to support farmers, such as the Agricultural Credit Support Scheme that offers loans to farmers at an eight percent interest rate, the CBN disbursed N629 billion to farmers at single-digit rates in 2022 through the Anchor Borrowers Programme.
Imam argued, “Providing affordable loans is an investment in our collective future, ensuring food security and economic stability.”
He called for a reduction in the excessive cost of governance in Nigeria, with savings redirected towards agricultural investments.
He also proposed that every local government should acquire tractors, which can be rented out to farmers at subsidised rates.
Alternatively, he pointed out that the government could distribute tractors to farmers’ cooperative associations, with repayments spread over a minimum of five years.
Additionally, Imam highlighted the potential of coffee production, citing Oyo State’s plans to plant 2 million coffee seeds or seedlings in the upcoming three seasons.
He revealed 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 this ambitious target.
This move comes as part of efforts to boost agricultural productivity and food security in Nigeria.
