Lagos farmers move to establish microfinance bank

Farmers under the umbrella of the Lagos State Apex FADAMA Community Association are working towards transforming the association into a microfinance bank in a bid to tackle the financial challenge limiting production, wealth creation, employment generation, and international competitiveness.

At a seminar on the proposed establishment of the microfinance bank held last Thursday, Mufutau Abiodun Oyelekan, president of Lagos State Apex Council FADAMA Community Association, said the FADAMA project, which has come to an end after the expiration of the third phase, had helped to bridge the funding challenge facing many farmers in the state.

“With the coming to an end of the project, the need to have a financing alternative cannot be over-emphasised; hence, the idea to transform the association into a microfinance bank. It is envisaged that the microfinance bank when it commences operation would be able to assist our teeming farmers with profitable loans and start-up capital to embark or continue with their farming activities,” he told BusinessDay on the sidelines of the event.

Asked when the microfinance bank would come on stream, Oyelekan said: “We hope to start in the next six months. We are seriously working on N50 million for the take-off of the bank. Already, we have some NGOs that are ready to buy into the initiative, but we don’t want them to take over the project from us. We really want our farmers to make their own contribution since it is their bank. We want them to make contribution, let them know they have to buy into it, see the importance, and get the benefits.”

Yakubu Olajide Bashorun, permanent secretary, Ministry of Agriculture and Cooperatives, Lagos State, described the FADAMA project as a champion project that had boosted the capacity of farmers in the state.

“The project has done so much for our farmers. They have been empowered and a lot of them have expanded their business. Lagos State benefited from commercial agriculture because of the success of the project,” said Bashorun, who was represented by Sakirudeen Onasanya, director, agric services.

There are many microfinance banks, but they are not agriculturally minded, they are not farmers friendly, said Oyelekan, saying “that is why we want to have our own. We are farmers, we know our problems. We know the interest rates that will be suitable to farmers. We want to be farmers-friendly, market women-friendly. Markets women who sell our products will be given high priority. Our customers that buy our products and our crops, consideration will be given to them. We will sensitise them to buy into the project.”

The FADAMA project, which commenced in 1997, was conceptualised by the World Bank with the active participation of the federal, state and local governments as a quick and sustainable agricultural and rural development project. The project was funded majorly by the World Bank with financial participation of the federal, state and local governments.

FEMI ASU