CBN agrees to 5% lending rate for farmers – Ogbeh

CBN agrees to 5% lending rate for farmers – Ogbeh

The Central Bank of Nigeria (CBN) has agreed that loans by banks to farmers in the country should attract only five per cent interest, the Minister of Agriculture and Rural Development, Audu Ogbeh, said Tuesday.

Mr. Ogbeh made this known on Tuesday, while delivering a keynote address at the opening of a two-day national workshop on a “New Agricultural Policy for Nigeria”.

The workshop was organised by the National Agricultural Foundation of Nigeria (NAFN) in collaboration with the ministry and All Farmers Association of Nigeria (AFAN).

According to the minister, the agreement followed discussions with key officials of the apex bank on Tuesday morning.

“Just this morning, I have talks with key officials of the Central Bank of Nigeria to bring the lending rate to five per cent

“With those rates, I assure you as a man, who has been in this business – agriculture – since the age of seven years, you cannot make profit in agriculture,’’ Mr. Ogbeh said.

The minister said that agriculture and solid minerals remain the alternative sectors to which the country could diversify now to survive current economic situation.

He said: “The challenge before us is how to make this happen. The time for lamentation is over. The time for action is here”.

Mr. Ogbeh said unless this was done, the problem of youth unemployment and youth restiveness would continue to plague the country.

“We have 100 million young people in the country who are below the age of 50 years and if we do not give them job, they are likely to take care of us in a very rough manner,’’ he said.

Mr. Ogbeh said the outbreak of bird flu and pastoralists/farmers clashes remained challenges to the sector, adding that in the last two months, the flu had killed between five and six million birds.

He, however, said that a vaccine had been found for the virus.

“I have been calling friends across the globe.

“Just yesterday, I received a message from Egypt and they informed me that they have found a vaccine which they injected the chickens with which is working perfectly well.

“We will not immediately rush in and bring the vaccines, we will ask our research institutes to take a look and see if they can fit into our needs.