Leadership (Abuja)
Gloria Ezeiru
30 November 2011
The Federal Government represented by the ministries of finance and agriculture, has signed a Memorandum of Understanding (MoU) with Nigerian deposit money banks for the financing of the supply of seeds and fertiliser to Nigerian farmers during the 2012 farming season.
The Minister of Finance and coordinating minister of the economy, Mrs. Ngozi Okonjo Iweala, while signing the agreement yesterday in Abuja said the aim of the move was to effectively withdraw the hand of the government from agriculture and encourage the full participation of the private sector, which she said was the only way the sector could experience rapid growth.
She said according to the agreement signed, the banks and other facilitators would raise N22 billion which would help boost production and marketing of agricultural products in the 2012 planting season.
She said the federal government would guarantee 70 per cent of the loan principle which would be shared between five million farmers across the country.
Iweala pointed out that the loan facilities would be available to the said farmers from December, 29, 2011.
Chairman of the Bankers’ Committee and Managing Director of Access Bank, Mr. Aigboje Aig- Imoukhuede explained that the interest rate for the loans would be 7 per cent with an interest drawback element that would cost 8 per cent.
He assured stakeholders of the expected benefit of the landmark agreement to the nation’s economy, adding that not less than 10 state governors had agreed to partner with the group to ensure the success of the deal in their respective states.
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