Ogun Lawmakers approve N5bn CBN facility for agribusiness

Ogun lawmakers has given the state government the go-ahead to access the N5 billion Commercial Agricultural Credit Scheme from the Central Bank of Nigeria (CBN), to make funds available which farmers in the state could source.

The approval on Friday followed a request from the state governor Ibikunle Amosun to the lawmakers seeking their approval to access the facility which will set agribusiness on upswing in the state.

Farmers across the 20 local government areas of the state, under the aegis, All Farmers’ Association of Nigeria (AFAN) had prior to the approval, complained of paucity of funds to further invest in agricultural businesses.

The state government request was in a letter dated August 2, 2016, to the House of Assembly and entitled: “Request for approval to access N5 billion credit facility under the Central Bank of Nigeria, Commercial Agricultural Credit Scheme (CACS)”. It was read at the plenary by the Speaker, Rt. Hon. Suraju Ishola Ade

It read “the State Government wishes to take advantage of the window availed to it by the Central Bank of Nigeria (CBN) in collaboration with the Federal Ministry of Agriculture for promoting commercial agricultural enterprises in the State by utilizing part of the funds approved in the 2016 approved Estimates on the Central Bank of Nigeria (CBN) Commercial Credit Scheme (CACS) as approved by the State Executive Council, in its resolution of 16th May, 2016.”

The lawmakers at plenary on Friday, granted the approval through a motion by the Majority Leader, Hon. Adeyinka Mafe, and seconded by Hon. Bowale Solaja.

The motion got the support of the whole house through a voice vote which gave preference to the governor’s correspondence due to the importance of the scheme to farmers and the development of agriculture in the state.

“I just want to move that in view of the peculiarity of the request of the Governor and as we in the House of Assembly have done our own work thoroughly on the advantage of the facility to farmers in the State, I want to move sir, that you suspend order 17 (2), so that the letter can be given immediate attention”, the Speaker said.

The lawmakers said the move became imperative to support government’s desire to enhance agricultural enterprise in the state for massive food production and earn more foreign exchange, adding that the lives of farmers working in the state would improve as the loans would be made available to them on a single-digit interest rate.

The approval of N5 billion loan will boost investment towards agribusiness according to some farmers who spoke to InsideBusiness.