The Minister of Agriculture and Rural Development, Dr. Mohammed Abubakar, announces a loan facility worth N5 billion at the Bank of Agriculture (BoA) for livestock farmers nationwide.
During a media briefing held at the Ministry's headquarters in Abuja, Dr. Abubakar emphasized the need for livestock farmers to receive similar support as crop farmers and announced the loan facility as a means for them to expand their businesses, attract potential investors, and enjoy reasonable interest rates.
The Minister highlighted the importance of balancing attention between crop and livestock sectors for both food and nutrition security. He also mentioned the ongoing recapitalization of BoA, with N5 billion already available for livestock herders, and assured continuity in agricultural initiatives with the incoming administration.
The Managing Director of BoA, Alwan Ali Hassan, elaborated on the bank's role in financing the complete agricultural value chain. He acknowledged the historical emphasis on crop farming over livestock farming, particularly poultry and small ruminants.
The livestock sector financing initiative, which commenced three weeks prior to the briefing, already registered approximately 20,000 farmers across the country.
Hassan urged applicants to visit their nearest branch to register, obtain application forms, and undergo the necessary processes. He stressed the importance of loan repayment and informed participants about the bank's credit policy and procedures, including stakeholder engagement and enlightenment. Associations were encouraged to introduce their members for loan access, and individuals without association affiliation were also welcomed.
Regarding interest rates, Hassan explained that they varied depending on the specific value chain and ranged from nine percent to fifteen percent, considering the risk factor of the business.
Loan disbursement would adhere to the loan conditions outlined by the Central Bank of Nigeria (CBN) regulations and the bank's own financial institution guidelines. Collateral requirements were in place to ensure loan repayment.
Baba Usman Ngelzarma, the National President of Miyetti Allah Cattle Breeders Association (MACBAN), expressed his delight with the initiative, highlighting its significance in modernizing the livestock industry and transforming it into a vibrant value chain. He emphasized the need for Nigeria to align with global standards in managing the industry.
