…. Osun Govt to Give Additional Money, Gifts, OBOPS Membership To Winners.
The Central Bank of Nigeria on Tuesday has lamented on the reluctancy of farmers to repay loan under the Agricultural Credit Guarantee Scheme Fund (ACGSF) in Osun State.
The CBN Osogbo Branch Acting Controller, Mr. Yemi Solaja, said this during an award ceremony for the best farmer under the ACGSF organised by the bank.
“The main challenge we have is loan recovery. A lot of people are reluctant in paying up the loan to the financial institutions, and of course if they don’t pay loan there is no way the money can go round.
“So it involving loan that when you give to some section of people having return the money you can give to another people so that there will be growth in the economy,” he said.
He added that the Central Bank of Nigeria will embark on ‘agressive awareness’ as to reach more citizens with the intervention.
Also, Mrs. Oluyemisi Adebayo, the head of development finance office in the bank, while acknowledging the reluctancy of farmers to repay loans said the award was initiated to encourage them.
In her words, “the major challenge we are having is the issue of loan repayment and that is why we institute an award ceremony to show them that when you take money and you do well, you will be rewarded.
“Some of our farmers when see some of these intervention as national cake. So at time they will misappropriate what we have given to them, at times they would side sell their output and not repay their loans. So that has been the major challenge.” she said.
According to her, the Central Bank of Nigeria has specified loan recovery measures for specified loan programme.
“It depends on the type of programme because CBN has a lot of programs, we have guarantees where we guarantee fund of financial institution giving out to farmers, we also have outright loan giving to farmers, so the measure depend on the type of support we are giving to the farmers. there are times we tell them to loan guarantee each other, we call it cross guarantee. There are times they pay deposit with a particular amount and for some of the inter-programs too, the commercial banks or financial institution giving out the money will also request them to bring collateral.”
The Ministry of Agriculture and Food Security, on behalf of the Osun State Government also promised to add monetary support as well as make the winners members of the Osun Broilers Production Scheme (OBOPS).
Speaking during the event, the state Commissioner For Agriculture and Food Security, Adewole Adedayo who was represented by Mrs. Adegbemisola Fayomisi said the state government will do this so as to encourage farmers.
“Yes, I said as the token of the state government of Osun that apart from the monetary gift and everything the CBN has given to those farmers, the state ministry of Agriculture will also appreciate them by giving them our own token too.
“We thank CBN because at least this will encourage more farmers to come out to take loan knowing fully well that it is possible for them to take the loan and profit in their business and at the same time it an encouragement to those who can utilize the money and pay back so that others too will do the same.”
Speaking earlier, Solaja said that CBN uses ‘moral-suation’ to encourage the farmers to repay loans.
“We encourage and plead to them. There is no way you can take loan from the Central bank or any bank that you won’t be able to pay back. The BVN is there and other measures. There is no way you can hide under this world except if your money doesn’t pass through financial institution. We must recover that money.”
Mr. Alani Kareem Aimasiko was awarded the CBN Best Farmer of the year 2022, while Mr. Oladipo Abimbola was awarded second Runner-up and Mr. Olufayo Micheal was the third Runner-up.
