CBN, Sterling Bank Boost Agric With NIRSAL loan

Sterling Bank
  • CBN, Sterling Bank Boost Agric With NIRSAL loan

At least 22,000 farmers in Kebbi State are to benefit from the Central Bank of Nigeria’s Anchor Borrowers Programme aimed at increasing the cultivation of rice in the country.

The loan, which was anchored under the Nigeria Incentive-base Risk Sharing System for Agriculture Lending, would be disbursed to the beneficiaries by Sterling Bank Plc.

Speaking during an interactive session with NIRSAL officials in the state, the Head, New Business Sales, Sterling Bank, Mr. Adewale Adebowale, said each of the beneficiaries would get a N250,000 loan.

He said the loan would cover the cost of preparation and supplies of farm inputs needed for rice cultivation within their localities.

Adebowale further said that arrangement had been concluded to engage the farmers in perfecting their account details with the bank, adding that, this would enable them to access the loan with ease.

He said, “Our bank is currently working with other stakeholders to make the programme a success. We are taking banking to the people, as our team members are on ground to engage the farmers in perfecting their account details for the disbursement.

“About 15,000 of them have already been captured. Their accounts are ready to accommodate the disbursement.

“What we need is the update of the remainders using our mobile Bank Verification Number machine deployed to the field. As we engage the farmers, we issue debit cards to them.”

The Sterling Bank official also said that an Extensive Agent Network had also been put in place to ensure that farmers in the rural areas have urgent and easy access to their loans without using the Automated Teller Machine.

According to him, the aim of the bank is to ensure the funds provided to the farmers are properly utilised.

“At the end, what we want to achieve is that the funds are properly utilised. The transaction dynamics are fast and the access to the funds are guaranteed to ensure that farmers have good yields at the end of the farming session,” Adebowale noted.

Also speaking, the NIRSAL Head, Project Monitoring and Reporting Office in the state, Mr. John Kpetsum, said the farmers were expected to engage in three hectares of rice cultivation.

According to him, the ABP of the Central Bank of Nigeria gives loans to farmers at low, single-digit interest rate.

Kpetsum also disclosed that the selected farmers would access the funds through cooperative groups and are expected to make an equity contribution of 10 per cent of the loan amount.

Some of the beneficiaries in an interview commended both NIRSAL and Sterling Bank for ensuring that the disbursement was done before the commencement of farming season.

Alhaji Yusuf Gabi, a beneficiary and Argungu Coordinator of Rice Farmers Association of Nigeria, noted that with the involvement of Sterling Bank, farmers were confident that their funds would be secure and accessible.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years experience as a foreign exchange research analyst and trader.

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