CALABAR, Federal Republic of Nigeria (Report by Richard Ndom) — The Bank of Agriculture (BOA) on Wednesday said that arrangements had reached advanced stage to provide N1billion loan at 12 per cent interest rate to Songhai farms in Cross River State.
Manager for Calabar Branch of Bank, Mr Takim Tawor, disclosed during an interactive session with journalists in Calabar. Takim disclosed that from inception, 11,000 small holders farmers had benefited from the BOA’s agricultural loans scheme in the state, amounting to N618 million.
“Last year we have also given loans to the Cross River State Government to the tune of N320 million to finance its agricultural projects in all the 18 Local Government Areas of the state. We encourage rural farmers to open a saving account with us for at least three months and you must have up 20 percent in your account of what you want to collect”, Takim maintained.
According to him, the greatest challenge facing the BOA in credit support to beneficiaries had to do with their poor loan repayment rate as the bank spends more fund trying to recover its loans.
“We give our loans all year round because we finance agricultural loans and non-agricultural loans to members of the public”, Takim said.
The Songhai Farms which is located in Itigidi community in Abi local government area of Cross River state. Bank of Agriculture is owned by the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance to deliver credit facilities and necessary funding windows for the micro, small and medium scale farmers operating in the country
