Farmers Loan In Nigeria: How To Get It 2024
Are you involved in farming and wish to gain access to a loan? If your answer is ‘yes,’ then you are on the right page. We will unveil various loan schemes in Nigeria where a farmer can easily secure funds to improve their farming business. You can also check out the list of federal government interest-free loans.
Agriculture, which is the largest sector in Nigeria’s economy, has been overlooked in recent years. Many now focus on the oil sector, forgetting that agriculture is a major source of livelihood in Nigeria.
To revitalize the agricultural sector, both the Federal Government of Nigeria and private sectors have deemed it necessary to provide support to farmers with soft loans, recognizing the industry’s potential contribution to the country’s economy.
These loans aim to assist Nigerian farmers in improving their ventures and contribute to boosting the country’s
Farmers Loan Programs In Nigeria
Some of the genuine, confirmed, reliable, and readily available loan platforms for farmers include:
- Farm operating loans ( direct and guaranteed)
This is a loan scheme that is opened to Farmers who are into family farming or animal farming, and it is being run by Farm Service Agency (FSA). They offer several operating loan options to interested Farmers in Nigeria, as they look forward to promote and sustain farming activities, which will lead to growth of the agricultural sector of the country and the economy in extension.
- Farm storage facility loans
This is a unique loan scheme that is being introduced by the Nigeria government. The loan scheme is design
specially to encourage storage & handling facilities meant for specific farming commodities (produces).
Some of the produce are;
- Chickpeas, etc.
- Fisheries finance program
The Fisheries Finance Program (FFP) is a direct loan program from the government. The program/scheme gives a long term financial support to Fish farmers, and also cover other cost which includes; fisheries facilities, fishing vessels, as well as other equipment being used for fish farming.
- Farm ownership loans
Farm ownership loans is a loan scheme that assist Farmers in the purchase of farmlands. The scheme does not only purchase the land but also handles the
construction/renovation of a ranch. When necessary, the loan can cover for the protection/consevation of soil and water, meant for the farmer.
- Agricultural credit guarantee scheme fund (ACGSF)
This is a loan scheme organized by Central Bank of Nigeria (CBN), and has been helping farmers since 1978. It is one of the oldest program and up till date it’s still serving the purpose of its creation.
- Agricultural Credit Support System (ACSS)
This is a governmental program established to render agricultural loan to agro-allied entrepreneurs, and anyone
practicing farming. The funds assign for this program is controlled by CBN with total prescribed value of fifty billion naira (N50,000,000,000). It’s initiative also help in reducing inflammation, generate food for exportation, increases foreign and local revenue.
- Commercial Agriculture Credit Scheme (CACS)
CACS was established in the year 2019 by CBN in conjunction with the Ministry of Water Resources, with the aim of financing the agricultural value chain in Nigeria. The scheme believes that increased production of agricultural produce can help in the reduction of inflation related issues in the country and the Debt Management Office where the major financial support is coming from is believed to have raised two hundred billion naira (N200,000,000,000) bond.
- Farmers’ loan from private institutions
There are other private owned firms/establishments that offer loans to Farmers in Nigeria. Some of these institutions give loans with a very high interest attached, that is to say their interest rate is higher compared to
governmental loan programs.
Farmers Loan In Nigeria: How To Get It 2024
Each and everyone of the above mentioned scheme has different means of applying for their loan. As a farmer in Nigeria, you should first and foremost choose which of the scheme you will want to get the loan from, after which you will visit their official webpage to see the procedures on how to apply.
Note: The Loan application requirements, methods, loan amount, and procedures varies. Farmers who are into small scale farming, and wishes to expand his/her farming output are expected to grab this opportunity.
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Remember, majority of them (the loan schemes) are governmental programs and won’t be needing higher interest in return.