Nigerian agriculture to receive N30 billion
Nigerian banks are to inject more than N30 billion (€139 million) into the country's agricultural sector, it has been revealed.Nigerian banks are to inject more than N30 billion (€139 million) into the country's agricultural sector, it has been revealed.
Chairman of the Bankers' Committee Aigboje Aig-Imoukhuede said financial institutions wish to play a bigger part in supporting the nation's economy, the Daily Trust reports.
As agriculture is the greatest contributor to Nigeria's gross domestic product - accounting for 32.71 percent in 2007 - Mr Aig-Imoukhuede said the focus will be on this sector.
"It is envisaged that this new and innovative partnership would ensure that at least five million farmers have access to these essential agricultural inputs," he continued.
The funds will be distributed on a single digit interest rate to ensure agricultural input dealers are able to maintain immediate supplies of inputs to farmers in 2012.
Loans will be available across Nigeria's six geopolitical zones at a subsidised rate of seven per cent per annum.
Initially, six banks were involved in drawing up a document for the financial initiative before it was presented to other institutions through the Bankers' Committee, which then contributed to the final draft.