Newsexpress banner Camano banner
N350m collateral required from farmers for agric. loan too much, says LCCI

By News Express on 26/07/2015

Views: 2,614


The Lagos Chamber of Commerce and Industry (LCCl) on Saturday said the over N350 million assets required as collateral before a farmer could access a loan under the agriculture credit scheme was too much.

The LCCI Chairman, Agriculture and Non-Oil Group, Prince Wale Oyekoya, told the News Agency of Nigeria (NAN) in Lagos that commercial banks usually demanded for the collateral before it granted credit under the scheme.

NAN reports that the Federal Government, through the Central Bank of Nigeria (CBN), set aside N200 billion facility as agriculture credit for farmers, to help with their farming activities.

According to Oyekoya, the N350 million assets being demanded before the loan could be granted makes it difficult for farmers to take the loan.

"As a result of this, only two farmers have benefitted in the whole of Lagos State since the creation of the credit facility.

"Where do they expect 'real' farmers to get such assets from? It is only 'portfolio' farmers who can have such assets to get the loan after which they divert it into real estate construction. Then real farmers continue to suffer.

"This has affected farmers and many farms are closing down faster than we have experienced before,’’ he said.

The chairman also said that instead of the banks demanding N350 million assets, the facilities on the farm land should suffice as collateral for accessing the agriculture credit.

He said that in spite of this, however, farmers had not been idle as they had many agricultural cooperative societies to provide them with loans.

Oyekoya said the highest amount of loan a farmer could get from the cooperative society was N250, 000.

"N250, 000 is just a drop in the ocean for a farmer who is into integrated farming; especially as the cost of production for farming is increasing on a daily basis.’’

According to him, there are no credit facilities to help cushion the effect of any loss suffered by farmers.

The LCCI chairman said that farmers were usually left to mourn their losses alone while those that could not recover had been forced out of farming business.

He stressed that such attitude towards funding of farming activities by banks needed to change for the success of the sector and diversification of the economy from oil. (NAN)

Source News Express

Posted 26/07/2015 04:16:54 AM

 

 

CLASSIFIED ADS

 

You may also like...
ECOWAS to take all necessary actions in The...

Second suicide bomber hits church in Kaduna army...

Okowa will make a good governor, says Delta...

NSIA: PFI initiative has eliminated fraud in the...

Cross River community where girls are sold to...

Ex-soldiers threaten war over pension arrears •Vow to...

4 INEC workers, NYSC member, 3-year-old die in...

LMC fixes date for new NPFL season

Trump, family members, US envoy get death threats...

EFCC faults oil chiefs’ bid to quash N1.5bn...

Kenya targets 1 million digital jobs for youths...

EgyptAir passenger plane hijacker explains why he did...

 

Latest News Video of Buhari running in Saudi Arabia breaks the net Tribunal: NEC disowns presidential candidate Why it’s difficult to arrest, prosecute vote buyers — ICPC Man, 52, in police trouble for attempting to swindle Ogun CP Alleged defamation: Atiku demands public apology from Presidential aide Bodies of twins found in river 5 die in Honduras plane crash I am ‘emotionally indebted’ to Ganduje, Emir of Kano – Shettima Police kill suspected kidnapper of UBEC Chairman Falana writes Buhari, demands release of 40 Nigerians illegally detained by Nigerian Navy Assets Recovery: New Bauchi Assembly bill against people’s interest – CSOs Coaches salaries: Why sponsors are withholding funds – NFF

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (480,139 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (419,436 views) Shameless Genevieve Nnaji exposes breasts in public (357,898 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (305,978 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (270,247 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (241,307 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (229,202 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (210,927 views) 10 cars more expensive than Jets (202,154 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (200,206 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (181,292 views) Lagos plane crash: Journalist releases victims’ names (181,227 views)

 

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (91) Business & Economy (4,266) Business Verdict (71) Columnists (1,031) Complaints & Requests (95) Enterprise & Opportunities (208) Entertainment (613) Features (752) Global Business Monitor (362) ICT Monitor (43) International (3,460) Interview (179) Live Commentary (29) Love Matters (161) Maggie's Blog (268) News (46,309) Opinion (1,242) Pidgin (17) Politics (10,796) Religion (1,002) Sports (2,007) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera