By Wole Adedeji, Ilorin
The Kwara State Government and the Bank of Agriculture (BOA) have agreed on collateral-free loans to farmers in the State.
Agribusinesses, enterprises and other allied ventures are to also benefit from the gesture.
Initiated by the Ministry of Agriculture and Rural Development, the Commissioner, Dr. Afeez Alabi, during a visit to the Ilorin branch of BOA formalized the deal during a working visit to the Bank’s branch Manager, Alhaji Tomori Mahruf where the working details were finalized.
The loan scheme is expected to come handy to help farmers scale farers’ financial barriers as they prepare for the 2025 planting season approaches cutting across all agricultural value chain.
The loans according to the report would be in two categories which are the Micro Loans (₦250,000 and below) designed for smallholder farmers, backyard growers, processors, and agri-SMEs.
It would require no collateral and it would have minimal documentation, intended for quick-impact ventures.
The other category was a Macro Loans (up to ₦1 million): Targeted at more established agribusinesses including three tailored sub-programmes:
They are; the Youth Agricultural Revolution in Nigeria (YARN)– for young entrepreneurs in mechanized farming, agri-tech, and related enterprises.
Also, the Grow and Earn Move (GEM) for general farmers aiming to scale operations. There is also the Women Agricultural Enterprise (WAE) which is for women involved in any aspect of the agricultural chain, from production to distribution.
Civil servants were not left out in the arrangement. They are said to be eligible for these facilities through salary-backed arrangements.
Commissioner Alabi in his remarks said the initiative was timely and inclusive stressing that his principal, Governor AbdulRahman AbdulRazaq’s administration remains committed to strengthening food systems, supporting local economies, and expanding access to credit for underserved groups.