TOHFAN, Sterling Bank, distribute tractors worth N50m as loan to farmers

Tractors Owners and Hiring Facilities Association of Nigeria (TOHFAN), said it had distributed 14 tractors worth N50 million as loan to farmers to encourage them adopt mechanized method of farming.

National Treasurer of the Association, Abdullahi Lawal, said that the project was carried out with the assistance of Sterling Bank

“Today, we have distributed 10 tractors to beneficiaries while the remaining four will be handed over to another set of beneficiaries next week.

“The entire scheme was financed by Sterling Bank Plc; they gave us N50 million to actualize the dream,” he said.

Lawal said the loan would be repaid in the next three years, adding that every beneficiary would be repaying specific amount of money monthly, based on the brand of tractor obtained.

He said that the bank had no business with the beneficiaries, and no collateral was required from the farmers

“The bank deals only with TOHFAN, not beneficiaries, as such anybody who wants to benefit, must be a member of the association.

“He or she must be somebody of proven character, and must pay 20 per cent of the total cost of the tractor.”

Lawal said the association decided to collaboration with banks instead of government because most people were always reluctant to repay loans that came from government.

“There was a similar programme introduced by late President Umaru Musa ‘Yar’adua, where a farmer collected a brand new tractor as loan but as I am talking to you now, he has not repaid up to N300,000,” he said.

NAN