NIRSAL swaps maize farmers’ loans for inputs
By
The Nigeria Incentive-Based Risk Sharing for Agricultural Lending (NIRSAL) is set to swap loans meant for maize farmers under the auspices of Hope Concept Cooperative in Ifo, Ogun State for inputs despite making a first tranche payments to 331 farmers under the scheme.
Following BusinessDay publication on what seemed as NIRSAL’s delay tactics in paying the maize farmers their loans after approval by the Central Bank of Nigeria (CBN), NIRSAL embarked upon a fire-brigade approach of purporting to pay some of the farmers two weeks ago.
“NIRSAL and our paying bank, Sterling, told us that farmers that did not receive payments have issues with their Bank Verification Number (BVN). How can we have issue with BVN, when the CBN had already done every necessary check before approving the loan for us,” a farmer under the scheme who does not want his name mentioned on print asked this BusinessDay reporter.
“After our first outcry about 331 farmers under the scheme were paid the first tranche with each getting N282, 100. Days later, NIRSAL informed us that the money for the rest members of the cooperative would be returned to Abuja.
“Few days ago, we heard of a new twist to the whole story that NIRSAL will supply us inputs. This is contrary to the arrangement we have entered with our off-takers Flour Mills. Our off-taker will supply us with the needed inputs and in turn deduct the costs from our payments after off-taking from us,” the farmer said.
He stated that NIRSAL will only supply farmers with sub-standard and adulterated inputs as it has been the case of previous government inputs interventions for farmers.
He noted that the purpose for the farmers seeking the loan would be defeated if the farmers do not get to the farm on time, adding that farming demands timeliness.
Experts, who spoke with farmers on the issue stated that farmers’ inability to plant as and when due will lead to high default rate in the loan repayment, as interest would keep accruing.
“The untimely release of intervention funds for farmers has led to high default rates amongst farmers. With delay in releasing of funds, the banks are creating problems for the farmers to repay back the loan. This is the case with the Anchor Borrowers Programme where there are high default rate,” Wale Oyekoya, former agribusiness group head, Lagos Chamber of Commerce and Industry, said.
NIRSAL, when contacted by BusinessDay three weeks ago, said that the institution was still conducting verification on the farmers which is causing the delay of payments, promising that all payments would be made at the end of the week.
It has been over three weeks now only 331 farmers have been credited out of the 872 farmers under the cooperative, leaving others hanging after clearing and tilling their lands, BusinessDay investigations found.
“The money has been approved by the CBN but we need to do a credit check on each of the farmers. Within the next five days (3rd of August) their accounts would be credited,” Anne Ihugba, head of corporate communication for NIRSAL told BusinessDay.
A staff member of CBN who does not want his name mentioned on print, stated that CBN had already carried out all verification on the farmers and on their BVN before the loans were approved, noting that the apex bank would never approve any loan without proper verification.
He noted that NIRSAL ought to have disbursed the money to the farmers within the next five working days after approval.
Josephine Okojie