CBN Wants Banks to Raise Agric Lending to 10 %
Central Bank Governor, Mr. Godwin Emefiele, Tuesday urged commercial banks to raise loans to the agriculture sector to 10 percent in the next four years.
The current lending to the sector is four percent.
Speaking during the 13th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, Emefiele said this will help in improving the sector in a number of ways.
According to him, “If measures had not been taken earlier to improve cultivation and processing of staple crops in Nigeria prior to the onset of the pandemic, we would have had to deal with a major food crisis in the country. The banking sector, therefore, has a significant role to play as a facilitator of growth through its intermediation function.
“Over the next four years, the banking sector should consider ways under which it could increase its loans to the agriculture sector from four per cent to 10 per cent by 2024.”
He added that the agric sector could be a big opportunity for the country to earn foreign exchange through export processing of agricultural products.
“These measures would help to improve the productivity of farmers, increase our foreign exchange earnings, reduce post-harvest losses, increase access to finance for farmers while supporting the growth of other sectors of our economy such as manufacturing, and transportation.”
He disclosed that the sum of N69bn has been disbursed from the N100bn CBN COVID-19 support loans to 140,000 beneficiaries.
The current lending to the sector is four percent.
Speaking during the 13th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, Emefiele said this will help in improving the sector in a number of ways.
According to him, “If measures had not been taken earlier to improve cultivation and processing of staple crops in Nigeria prior to the onset of the pandemic, we would have had to deal with a major food crisis in the country. The banking sector, therefore, has a significant role to play as a facilitator of growth through its intermediation function.
“Over the next four years, the banking sector should consider ways under which it could increase its loans to the agriculture sector from four per cent to 10 per cent by 2024.”
He added that the agric sector could be a big opportunity for the country to earn foreign exchange through export processing of agricultural products.
“These measures would help to improve the productivity of farmers, increase our foreign exchange earnings, reduce post-harvest losses, increase access to finance for farmers while supporting the growth of other sectors of our economy such as manufacturing, and transportation.”
He disclosed that the sum of N69bn has been disbursed from the N100bn CBN COVID-19 support loans to 140,000 beneficiaries.
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