President Buhari Orders Single Digit Interest Rate For Agric Loans
President Mohammadu Buhari has given a directive to raise funds to support agriculture and industry at single digit interest rate.
The Minister of Agriculture and Rural Development, Audu Ogbeh, at the NACCIMA/NIRSAL agribusiness conference held yesterday in Abuja said the president stated this at the federal executive council meeting.
He disclosed that the committee, headed by the Vice President, would ensure they keeping the interest rate at 10 per cent.Stressing the need to restructure agricultural credit, he said: “At the council of ministers meeting, the president gave a directive to raise fund to support agriculture and industry at one digit interest rate.
“If we don’t keep the interest rate as minimum as it should, there is trouble ahead. Manufacturing is not so easy, other countries support agriculture, in every farm in Europe government support it with six euros per day.”
He lamented the inaccessibility of finance for agriculture, noting that farmers cannot borrow at 25 per cent interest rate as there is no production business that one can engage in with such interest rate.He said because the country is operating a federalism system of government has made it impossible for the Federal Government to interfere in the affairs of states
He lamented that despite increased focus on agriculture, there are states that does not have a single working tractor for farmers. He urged the private sector to put pressure on the governors and local government chairmen to do the right thing.