The Bank of Industry (BoI) has signed a
deal with three international development partners for the development
of the country’s agricultural sector.
The pact with GIZ and DFID will aid lending of up to N10 billion to small and medium enterprises in the agricultural sector.
Speaking at the signing of a memorandum
of understanding (MoU) in Abuja, acting Managing Director, BoI, Mr.
Waheed Olagunju said the agreement was a testimony to the bank’s support
to the development of the agriculture sector.
According to him, the bank’s passion for
the sector was borne out of the conviction that it holds the key to the
diversification of the nation’s economy at a time of dwindling oil
revenue.
He said based on the agreement, the bank
would provide up to N10 billion exclusively for the acquisition of
agro-equipment by either agricultural service providers or well
established farmers.
According to him, the latest
intervention to the sector was the largest the bank had earmarked for
any product programme, noting that based on the pact, the amount would
be repaid within a five year period by beneficiaries at a nine per cent
interest rate.
He said based on the agreement, micro
enterprises would be able to access up to N10 million; while SMEs would
access between N10 million and N50 million while medium scale
entrepreneurs could access above N50 million but not exceeding N500
million.
Olagunju added: “In recognition of the
catalytic role that agro-processing plays in boosting good production,
BoI in collaboration with development partners have designed a program
to provide finance for agro-equipment service providers and well
established farmers as well.
“It is envisaged that with better access
to credit to fund acquisition of agro-equipment, there will be improved
efficiency and production output in the agricultural sector.
“A N10 billion fund has been earmarked
for the acquisition of agro equipment and it is the largest amount of
money that the bank has earmarked for any program and this is a
testimony to the importance of agro mechanization in economic
development of Nigeria.”
He said the programme will enable the bank create 10,000 direct jobs and 30,000 indirect jobs within the targeted period
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