Contact us on how to secure grants and loans for your agricultural business
What does it take to secure agric loans in Nigeria? Agricultural development has been a matter of serious concern to the Nigerian government. The need to augment the country's domestic products through agriculture thus cannot be overemphasized. do you have a nice agric business plan, we are here to help you secure your needed funds.
Agriculture is the mainstay of any economy and is fundamental to the socio-economic development of any nation. This is why we have designed Agric Loan scheme to finance the farming activities of individuals, group or corporate organisations. The repayment schedule is designed to suit the seasonal nature of such activities.
Many countries in the world have developed their economy to enviable degrees by cultivating lands and monetizing the products. Which puts a challenge to Nigeria year after year to move a little concentration from crude oil to agriculture.
The agricultural sector is noted as the highest employer of labor in West Africa. Yet, it is not much more than peasant farming which could barely satisfy the needs of families. These reasons and more have propelled the Federal Government of Nigeria to start agricultural grants and credit initiatives. Through the Bank of Agriculture and some other commercial Banks, the Central Bank of Nigeria (CBN) has mapped out N200 billion for agricultural interest.
Poultry: One of the most lucrative farming businesses anyone can think of getting agric loans in Nigeria for is poultry farming. This type of livestock business does not come easy. The process involves huge capital which is the reason why it is in the list of farming that can be considered for grants.
Pig farming: On the other side of meats is pork emanating from pigs. Described as the better option, but the opportunity to setup a pig farm does not come cheap. So, it stands to be considered for agric loans in Nigeria.
Cassava: Serving as one of the most versatile farm products, cassava has been in the hem of agricultural products to be developed for extensive use in Nigeria. Biscuits, Bread, etc. These are among the big products that the Federal Governments is urging investors to develop from cassava. That means, your cassava farm proposal will be considered for loan.
Rice: Undoubtedly the most imported and one of the consumed food in Nigeria that leaves the question: When will Nigeria cultivate enough to stop depending on other countries for rice sustenance? The need to develop Nigerias rice farm culture is obvious and welcomed. Rice farming is among the farming business that is legible for loan.
Palm tree: Before 1934, Nigeria was the highest exporter of palm nuts, a product of palm tree. Today, Nigeria is making about 18% of palm products exportation. The chance to get back to where she used to be depends on the cultivating efforts of palm tree farmers. Nigerian government has been promising loans to anyone who has interest in developing a palm tree farm.
There are so many other farm opportunities to be reckoned with. Whichever one you choose, follow the steps below to get the fund you need to cultivate it.
The Bank of Agriculture (BOA) was established to help farmers develop their fields to any extent possible by giving low interest loans to qualified applicants.
The process of borrowing from BOA is not rigid. BOA operates at a level of direct lending, on lending, collaboration, and credit monitoring.
Loan Rate: Microcredit Agric and collaboration- 12%.
Loan condition: Lien deposits- 20%.
Customer account relationship- 6 months.
Deposit Rate: Interest Rate 2%.
A lot of other things are negotiable, but remember; your loan credibility depends much on the evidence that you have what it takes to execute your agricultural proposal. You can reach BOA on 07042262222, 07040202222.
Agric loan is not exclusive to BOA, other commercial Banks have been partnering with the FG to assist Farmers. For instance
The Federal Government, with the support of the Central Bank of Nigeria (CBN), has disclosed plans to launch a N10billion fund for the National Egg Production Scheme (NEPRO) in the country.
The target of the scheme is to achieve a daily production of 50million eggs over the next five years for the purpose of local consumption, export and processing into egg powder for use in confectionaries and pharmaceuticals.
The Minister of Agriculture and Rural Development, Audu Ogbeh, during a press conference announcing the launch of the programme in Ondo State, last Friday disclosed that the programme would provide one million jobs nationwide through egg production, processing and marketing.
Noting that there may have been a loss of four million jobs in the city last year, he said an additional six million jobs were created in the rural areas in the last two years, and additional one million jobs from the egg production would increase the number of jobs created in the sector.Ogbeh disclosed that the loan to be provided by the CBN will be disbursed by the Bank of Agriculture (BoA), at a single digit interest rate of nine percent, and would be piloted in six states of Abia, Cross River, Ondo, Kebbi, Kogi and Ondo.
Ogbeh explained that if the loan is approved by the CBN each farmer would get N4.2million with repayment spread over 30 months, each farmer would be self reliant with physical assets worth over N2.8million and cash assets of N1.68million.
The programme would also develop local capacity for the processing of minimum of 75 percent of table eggs, produced shelf table egg based products such as egg powder.
The Chairman, Tuns farm, Tunde Badmus, the anchor person for the programme, commended the government for the support given to poultry farmers, saying it was the first time they were getting such support from the government.
The project will be officially flagged off today (Friday), nationwide and would help conserve foreign exchange through the provision of egg processing machine to turn egg into powder.He said: “the secondary aspect of the production is processing that is capable of crushing 200,000 eggs per hour. The factory is expected to take off in June this year, because it is expected that the eggs would start coming out from that period.”
He disclosed that they are in talks with the Nigerian Railway Corporation, to provide a railway coach that would be specifically designed to convey eggs from different parts of the country to the processing plants.