#Financial news

Agric Micro Finance Bank excites Ondo farmers

By Francis Akinnodi

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Farmers in Ondo State have expressed the belief, that floating a Micro Finance Bank would fill the funding gap in Agriculture and Agribusinesses.
Senior Special Assistant (SSA) to Ondo State Governor on Agribusiness, Pastor Akin Olotu disclosed this in Akure while meeting with stakeholders and farmers on need to float an Agriculture Micro finance bank in the state.
Olotu said the target to start up a Microfinance Bank was N200 million which he said is sure it could be raised within the target of two months.
“Plans are in top gear by farmers in Ondo State to have their own Microfinance Bank. When we started initially, we were able to raise the capital base requirements which was N20 million then, it was that same week that CBN increased it to N200 million.”
He noted that funds earmarked for farmers by Central Bank of Nigeria (CBN) did not always get to the real farmers and the few that accessed it got it with interest rate of nine per cent compared to proposed two per cent by the Microfinance Bank.
He said it would also aid any intervention that was meant for farmers from government and beat the cumbersome processes attached to accessing bank loans.
He noted that 40 per cent of money in circulation in Kenya were owned by farmers; saying same can happen in Ondo State if we all work together.
“It is a must, if we are going to move forward, it is a vision of our governor to move from agriculture to agric business.
“We believe this will bring sanity to Agric finance in the state, will make input available to farmers at a very good price which will enhance profitability of agricultural products in the state,” he said.
Also a consultant, Dr Tolani Patrick urged the CBN to stop putting the risk aspect of lending money to farmers to commercial banks if the government really wanted to develop the sector.

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