With Kehinde Oluwatayo
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The Chairman of Ondo State Agricultural Commodities Association (OSACA), Mr Gbenga Obaweya has disclosed that the association is in the process of registering its micro-finance institution with its national body.
He made the disclosure in a chat with The Hope recently in Akure.
According to him, the micro-finance institution will replace the initially proposed farmers’ micro-finance bank which will not be possible again because of the inability of the association to meet up with the CBN fee.
“We have been waiting for a number of years and we thought we have a lifeline because the government was kind to sow a seed of N20m that we should use it as CBN fee.
“But unfortunately, the CBN did not receive the money from us. They said the requirements would soon be reviewed and when it was reviewed, the minimum capital which was N20m was reviewed to N200m.
“We have a setback because of the exhorbitant fee and have been unable to float the bank but what we have decided to do as an association is to do the next best thing which is to set up a micro-finance institution,” he explained.
He explained further that a micro finance institution can not take deposit like a bank but can do savings and lend money out to people.
Stressing that the association is in the process of registering the micro finance institution, Obaweya expressed hope that something tangible will happen before the end of the first quarter of 2019.
Obaweya, while reacting to the Federal Government’s advice that farmers should acquire shares in the banking industry to ease agricultural lending rate to five percent said it is not a bad idea adding that “we are encouraging our people to embrace the cooperative system.”
He said when there is adequate resources, farmers will know where to invest adding that the association is working on how to become players in agriculture sector.