CBN To Recover N36bn Loans From North-East Farmers

The Central Bank of Nigeria has inaugurated a committee in all local governments in the North-East to recover N36bn loans advanced to farmers.

The loan facility advanced to the farmers through the North-East Commodity Association is part of the Anchor Borrowers Programme of the Federal Government.

Inaugurating the committee for Borno State and its 27 local government areas on Sunday in Maiduguri, the Chairman of NECA, Alhaji Sadiq Daware, recalled that the association had made it clear to the farmers that the loans would be repaid.

He said NECA was able to secure the N36bn loan from the CBN on six different commodities, comprising rice, maize, sorghum, soya beans, sesame and cotton for farmers in the North-East.

Daware noted that Gombe State farmers got the highest amount because its farmers produced the six commodities, while 3,722 farmers in Borno State got the least amount, having only participated in one commodity (rice).

He said, “With relative peace in Borno, we’re optimistic that at the end of the programme, we’ll be able to make substantive recovery. We expect to recover at least 80 per cent of the loans from the farmers.

“Payment of the loans will definitely allow for the continuation of the programme. If farmers receive loans without paying back, then the programme cannot be sustained.”

The Development Finance Officer at the CBN, Maiduguri Branch, Mahmud Nyako, said payment of the loan varied from commodity to commodity and from hectare to hectare.

He said, “Each farmer gets N212,000 per hectare including labour related activities.”