Agricultural development has been a matter of serious concern to the Nigerian government. The need to augment the country’s domestic products through agriculture thus cannot be overemphasized. Many countries in the world have developed their economy to enviable degrees by cultivating lands and monetizing the products. Which puts a challenge to Nigeria year after year to move a little concentration from crude oil to agriculture.
The agricultural sector is noted as the highest employer of labor in West Africa. Yet, it is not much more than peasant farming which could barely satisfy the needs of families. These reasons and more have propelled the Federal Government of Nigeria to start agricultural grants and credit initiatives. Through the Bank of Agriculture and some other commercial Banks, the Central Bank of Nigeria (CBN) has mapped out N200 billion for agricultural interest.
These grants are supposed to cover many of these areas of farming
Poultry: One of the most lucrative farming businesses anyone can think of getting agric loans in Nigeria for is poultry farming. This type of livestock business does not come easy. The process involves huge capital which is the reason why it is on the list of farming that can be considered for grants.
Pig farming: On the other side of meats is pork emanating from pigs. Described as the better option, but the opportunity to set up a pig farm does not come cheap. So, it stands to be considered for Agric loans in Nigeria.
Cassava: Serving as one of the most versatile farm products, cassava has been in the hem of agricultural products to be developed for extensive use in Nigeria. Biscuits, Bread, etc. These are among the big products that the Federal Governments is urging investors to develop from cassava. That means, your cassava farm proposal will be considered for loan.
Rice: Undoubtedly the most imported and one of the consumed food in Nigeria that leaves the question: When will Nigeria cultivate enough to stop depending on other countries for rice sustenance? The need to develop Nigeria’s rice farm culture is obvious and welcomed. Rice farming is among the farming business that is legible for a loan.
Palm tree: Before 1934, Nigeria was the highest exporter of palm nuts, a product of the palm tree. Today, Nigeria is making about 18% of palm products exportation. The chance to get back to where she used to depend on the cultivating efforts of palm tree farmers. The Nigerian government has been promising loans to anyone who has an interest in developing a palm tree farm.
There are so many other farm opportunities to be reckoned with. Whichever one you choose, follow the steps below to get the fund you need to cultivate it.
The Bank of Agriculture (BOA) was established to help farmers develop their fields to any extent possible by giving low interest loans to qualified applicants.
The process of borrowing from BOA is not rigid. BOA operates at a level of direct lending, on lending, collaboration, and credit monitoring.
Loan Rate: Microcredit Agric and collaboration- 12%.
Loan condition: Lien deposits- 20%.
Customer account relationship- 6 months.
Deposit Rate: Interest Rate 2%.
A lot of other things are negotiable, but remember; your loan credibility depends much on the evidence that you have what it takes to execute your agricultural proposal. You can reach BOA on 07042262222, 07040202222.
Agric loan is not exclusive to BOA, other commercial Banks have been partnering with the FG to assist Farmers. For instance-
This Bank offers Agricultural financing to Agribusinesses, from small to big. But the starting point is: Evidence of ownership or right to use whatever portion of land you plan to use. Then you can choose from their Loan facilities what you really want-
Short Term Loan: Which covers a short period of time, say- 1 or 2 years.
Medium Term Loan: This type of Loan exceeds the period of 1 to 2 years. Sometimes, it lasts up to 4 years due to the technicalities involved in the business it is being funded with.
Long Term Loan: This type of loan is for Agric products that take longer time to mature.
Fixed Capital: Farmers get this type of Loan to enable them establish fixed assets on their farms.
Working capital Facility: This Loan is given to enable Farmers to shoulder their day to responsibility in the farm.
Whatever your objective is, these facilities will enable you to achieve it, so far you meet up with these requirements-
This setting is exclusive to individuals only. For Limited Liability companies and corporate organizations, there are only 2 steps-
Submit a loan application written with the company’s letterhead to the Branch. It must be duly signed by the company’s representatives.
Submit a detailed report on feasibility studies
There are other banks that offer credit facilities for farming in Nigeria, UBA, First Bank, Stanbic IBTC etc. Feel free to walk into any of the Banks and inquire of their procedure.Source: Wealth Result