The federal government on Thursday announced the approval of the sum of N15 billion for farmers in the 2013 farming season with a single-digit interest rate.
Vice President Namadi Sambo made this known during his address at the ongoing 19th Nigerian Economic Summit holding in Abuja at the Transcorp Hilton Hotel.
Sambo, who noted that “government is also mindful of the problems of access to financing and the current high interest rate on funds faced by our farmers” announced that “Mr President approved the sum of 15 billion to the Bank of Agriculture to be provided for our farmers for the 2013 farming season at one-digit low interest rate”.
He was quick to add that the fund is a short term measure even though the minister of agriculture, Dr. Akinwunmi Adeshina recommended a long term continuous plan.
He also announced the decision of the federal government to privatize the Bank of Agriculture through the National Privatisation Council (NCP) so as to “unbundle it and make it possible to provide cheaper funds for agriculture and allow other investors to participate in our agricultural bank”.
He further revealed that the Coordinating Minister of the Economy and Minister of Finance, Ngozi Okonjo-Iweala is working on the establishment of a Nigerian Development Bank in order to allow access of funds for infrastructure development that will provide long term and low interest rate in Nigeria.
