Agricultural lending to increase in Nigeria

Sep 10, 2012

Agricultural lending in Nigeria is to be stepped up between now and 2017, officials have confirmed.

Agricultural lending in Nigeria is to be stepped up between now and 2017, officials have confirmed.

According to the Central Bank of Nigeria, the country's agricultural sector has faced various challenges over the last few years, the News Agency of Nigeria reports.

The body's Nigeria Incentive Risk Implementation Office is therefore looking to increase capital lending to farmers as part of a wider effort to ease pressures in the industry and increase output.

Jude Uzonwanne, head of the organisation, stated that it wants to increase lending by at least three per cent by 2017 - and possibly by as much as ten per cent.

"Based on the size of our guarantee fund today of N45 billion (€223.5 million), it means that banks can comfortably lend N450 billion in agricultural loans," he commented.

The Nigeria Incentive Risk Implementation Office was set up last year in order to deal with issues specifically confronting the agricultural sector and engages with government officials and commercial financial services providers.

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