The Delta state government has disbursed the sum of N1 billion agriculture loan to farmers with a warning to the beneficiaries not to divert the loans to unproductive purposes.

The state governor, Dr. Emmanuel Uduaghan while making the disbursement at the Unity Hall, Government House, Asaba on Tuesday said the loans were obtained from the Federal Government and Central Bank of Nigeria (CBN).

Governor Uduaghan, who said his administration, would continue to encourage agricultural development programmes called on beneficiaries of the loan to utilize it judiciously. He encouraged other citizens of the state to take to farming to increase food production in the state.

He further stated that his administration has empowered farmers through the Youth Empowerment Through Agriculture (YETA), Farmers Support Program (FSP) and FADAMA III project.

At the Unity Hall, venue of the loan disbursement, members of various farmers’ co-operative societies, made up of the 934 loan applicants were issued cheques by the state governor.

In his address, the Commissioner for Agriculture and Natural Resources, Barrister Misan Ukubenyinje said the agricultural loan was an initiative of CBN in collaboration with the federal government and state Ministry of Agriculture to support local farmers in the state.

Barrister Ukubenyinje charged the cooperative societies not to divert the loan for any other purpose stressing that it would be re-paid within seven years at an interest rate of 9% annually.

Responding, a beneficiary, Chief Fidelis Ugba promised that they would judiciously make use of the loan for their benefit and that of the state.