CBN rolls out N1 billion loan to rice farmers in Enugu

At least 5,000 farmers in Enugu State would benefit from a N1 billion Central Bank of Nigeria’s (CBN) loan to the state for rice farmers. This is aimed at encouraging interested rice farmers in the state to go into full scale commercial rice farming.

Godwin Emefiele, the CBN Governor, who disclosed this in Enugu during the 2^nd launching of the Enugu CBN’s Anchor Borrowers’ program, said the program was in conjunction with the Okunerere Farms Limited (the anchor), and the Enugu State Government.

Emefiele noted that CBN strongly believes that under the present economic situation, developing agricultural sector, and acting as a financial catalyst to the economy by targeting specific sectors that can create jobs on a mass scale, reduce poverty broadly, boost inclusive economic growth and conserve scarce foreign reserves in the country, would be a way out of the economic problem.

According to the CBN governor, “Nigeria’s food import bill is both exceptionally and unsustainably high; and that relying heavily on food importation fuels domestic inflation, depletes our foreign reserves, displaces local production and creates unemployment in the country.”

Represented by Charles Enwere, the apex bank boss pointed that the anchor borrowers program was designed to create economic linkages between farmers and processors; not only to ensure increased agricultural output of rice, but also close the gap between production and consumption by ramping up capacity utilization in our integrated mills.” he said.

“In Enugu State, we are targeting 5,000 farmers. We are looking at two anchors, the first was Tarra Agro Industries and the second one was Okunerere Farm Limited. Tarra has a target of 3,000 farmers, while Okunerere has 2,000 farmers. So our combined capacity for farmers is 5,000. That is what we are looking out for in Enugu State, the CBN boss said.

He added that “what we actually did was to cost the production of rice in Enugu State per hectare, and we came up with the total sum of N193,000 per hectare. So that is the amount we are going to give to each farmer.

He however, said they were not going to give to the farmers cash. The component of it is given to them as inputs, such as seedlings, fertilizers, pesticides and other important inputs to help boost agricultural outputs and productivity. Then the labour components would be paid in their account.

Flagging off the program, Governor Ifeanyi Ugwuanyi of Enugu State, who was represented by his deputy, Cecilia Ezeilo said, his government would do anything within its reach to support farmers in the state for real diversification of the state economy.

According to him, the program would not only stimulate rice padi production in the state, but it would enable all rice processors in the state to get sufficient feed stock for their rice processing mills.

Governor Ugwuanyi noted that the beauty of the CBN anchor borrowers’ program was based on the fact that the farmers would not need to look for market to sell their rice padi, as the ‘off-takers,’  Okunerere Mills,  Tara Agro Industries Limited and others with subsisting MoU’s with the state government would purchase all rice produced by the farmers.

He commended the initiative, and stated that when fully operational in two years, it is expected to drastically reduce food importation, diversify the country’s economy and create jobs for women and youths.

However, the regional manager, Bank of Agriculture (BoA) reminded the farmers that the money given to them was not a grant, but loans; and the Bank must collect back every kobo involved.