In a bid to ensure agricultural development in the country, some commercial banks have decided to extend from six to 12 months, the tenure of loans granted farmers.
This was disclosed in a statement issued on Friday by Mr Greyne Anosike, the acting Director of Press of the Ministry of Agriculture and Rural Development,
It stated that the decision was taken at a meeting the minister, Dr Akinwumi Adesina held with the Governor of Central Bank and the chief executives of some commercial banks on Thursday.
The banks are: Access Bank, Diamond Bank, Enterprise Bank, FCMB, Jaiz Bank, First Bank and Mainstreet Bank, Sterling Bank, UBA, Unity Bank, Wema Bank, Zenith Bank, Union Bank and Bank of Agriculture
“The extension is to ensure increase in food production in 2014, and reduce inflation.
“It is also enable banks to reconcile the transactional ends of the seeds-fertiliser supply chains and the attendant loan to transition during dry season to wet season farming,’’ the statement stated.
According to the statement, the breakfast meeting was organised by the ministry to convey Federal Government’s appreciation for the banks’ contributions to the growth of agriculture.
It quoted the minister as saying that N20 billion was lent to farmers in 2013 as against N3.5 billion in 2012.
Adesina also said that the number of farmers recorded in a registration exercise which started in 2012, had reached 4.2million in 2013 with the adoption of direct electronic wallet scheme.
He said that about 20 million people had benefited from the Growth Enhancement Support scheme