These credit facilities are made available by the federal government to the public and cover a range of agricultural practices including crop cultivation and livestock rearing. There are a lot of avenues the government has provided for individuals and corporate bodies to access agricultural loans. Some of them include:
– CBN agricultural loan to farmers in Nigeria.
– Bank of Agriculture loan
1. CBN agricultural loan
This loan scheme was set up by the federal government to provide low-interest loans to farmers in Nigeria. To achieve this, the Central Bank of Nigeria (CBN) has recently approved the disbursement of about 75billion naira as the loan to farmers and cooperative societies in the 36 state and the Federal Capital Territory (FCT). This loan can be accessed directly from the Bank of Agriculture.
2. Bank of Agriculture (BOA) loans
The Bank of Agriculture of Nigeria is the main channel that the government uses to provide loans and grants to the public. The bank is owned by the federal government, with the Central Bank of Nigeria and the Federal Ministry of Finance incorporated as shareholders.
The bank’s activities are controlled by the Federal Ministry of Agriculture and Rural Development. When thinking of government loans, the BOA should be your first choice
3. Agricultural co-operative societies
The easiest and surest means of securing agricultural loans is through cooperative societies. Credits given to these communities come as grants. As a rule, the cooperative societies could be provided with the grants by the banks who will then distribute it to each member on the basis of contributory payments.
Some of the most important agricultural cooperatives that you can join to access loans are:
- All Farmers Association of Nigeria (AFAN);
- Youth Empowerment in the Agricultural Program (YEAP);
Source : Naija.ng