The Agriculture Development Farmers Association of Oyo State is calling on the Central Bank of Nigeria to significantly reduce lending rates to stimulate food production.

The association’s Chairman, Salihu Imam, emphasized that a substantial reduction in lending costs would accelerate agricultural growth and bolster food security in the country.

Imam stressed, “The demand for a lending rate reduction to two percent isn’t just a request; it’s a necessity for the advancement of our agricultural sector.

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Farmers are the backbone of our nation, and affordable loans are the driving force that propels our progress.”

Over the years, the Federal Government has implemented numerous initiatives to support farmers, including the Agricultural Credit Support Scheme, which provides farmers access to loans at eight percent interest.

In 2022, the Central Bank of Nigeria disbursed N629 billion to farmers at single-digit interest rates through the Anchor Borrowers Programme.

Imam argued, “Providing affordable loans is an investment in our collective future, ensuring food security and economic stability.”

He also called for a reduction in the excessive cost of governance in Nigeria, with savings redirected towards agricultural investments.

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One of his proposals is for every local government to acquire tractors and offer them to farmers at subsidized rates.

The government could distribute tractors to farmers’ cooperative associations, with repayments spread over a minimum of five years.