Published on : 16/02/2021 – 00:14
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Since coming to power in 2016, Nigerian President Muhammadu Buhari has made the promotion of agriculture one of the central elements of his speech. The aim is to “lift 100 million Nigerians out of poverty” by achieving food self-sufficiency, especially in the production of rice, one of the staple foods in Nigeria. To encourage agricultural activities, the federal government has set up several loan systems, supported by the Central Bank, but the peasants complain about the dysfunction of the system.
They are about ten commercial farmers, gathered in the small room. All of them have dark faces and worried eyes since their investment hopes have been dashed. On paper, Emmanuel Abah got a loan from NIRSAL, a microcredit organization funded by the Central Bank of Nigeria. Except that the promised money – a few thousand euros – never reached his account.
« The federal government encourages Nigerians to invest in the agricultural sector, as we see that oil prices are collapsing, he declares. Some have gone so far as to borrow money to pay the application fees to apply for this loan from NIRSAL. They went through the whole process, but got nothing. »
The agricultural ambitions of the Nigerian government come up against the difficulties of small farmers, who lack the capital to finance their equipment or hire workers. Considering the very high risks in this sector, obtaining a loan from a commercial bank is almost impossible, according to analyst Adedayo Bakare, who explains: “ To encourage people to start farming, the government offers financial aid, through the Central Bank of Nigeria. The agricultural sector may represent almost 25% of GDP, it accounts for less than 7% of loans. On the contrary, the oil sector which weighs just 10% of GDP concentrates 30% of loans granted by private banks. ».
“Food security is threatened”
Unlike commercial banks with double-digit interest rates, NIRSAL, backed by the Central Bank, is offering a 9% rate, down to 5% in the midst of the Covid-19 crisis. Draped in a long white tunic, Terkula also never saw the promised money. « If I have to justify collateral, prove that I own a house for example, well it will be impossible, I will never get a loan, he laments. And it’s the same story for 98% of young people. And that’s why despite their qualifications, they are all unemployed ».
But without money, it is difficult to grow production, yet too weak to feed the country – summarizes Pastor JB Shaka with a sigh: “ We want to remind that food security is threatened. Nigeria will suffer from the fraudulent attitude of our authorities “. The pastor and the other farmers in his association have not obtained an explanation from the Central Bank, or NIRSAL for the non-payment of their loans – even though the farming season is already well underway.
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