FG to provide interest-free loans and farm inputs to farmers
Nigeria’s federal government has revealed plans to provide interest-free loans to farmers in the country. This was revealed by the Honorable Minister of Agriculture and Rural Development, Sabo Nanono, who said his ministry would work with the Central Bank of Nigeria (CBN) to provide the loans.
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According to a report by PUNCH, the aforementioned plan was revealed by the Minister upon receipt of the 2020 Wet Farming Performance Survey on October 18, 2020. The Minister revealed that the survey showed that effective input subsidy would accelerate the productivity of the agricultural sector.
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Past
Nairametrics had previously reported CBN plans to provide interest-free loans to MSMEs affected by the pandemic, with around 1.1 million farmers expected to benefit from this largesse.
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What they say
Commenting on the latest development, Nanono mentionned, “The ministry would support farmers with farm 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 the states of Kebbi, Jigawa and Kano.
He urged farmers to step up their efforts and focus on achieving more success during the dry season to cushion the losses caused by the pandemic.
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Why is this important
The recent announcement is a step in the right direction as it will help increase production in the agricultural sector, ensure food security, boost the morale of farmers and make a huge contribution to increasing farmers’ incomes. In addition, this gesture can also go a long way in fostering financial inclusion, especially in rural areas.