Agricultural Grants and Loan in Nigeria… It is no longer news that agriculture is a lucrative business in Nigeria. It has also been identified as the largest labor employer in Nigeria.
Where to farm is no longer a problem for people interested in farming activities, a report has it that Nigeria has about 84 million hectares of arable land, of which only about 40% has been cultivated.
Agricultural Grants and Loan in Nigeria
To add to that, the climatic conditions in the country is suitable for the growth lots of agricultural products, including groundnut, cassava, cocoa, rice, palm, cashew, etc.
Nowadays, youths are interested in becoming entrepreneurs and venture into the agriculture business but they seem to face challenges like not knowing the type of agricultural business to start and funds to start the business.
That is why the government of the 36 states in Nigeria has set up different schemes and programs to provide support in the form of grants and loans for the development of the agricultural sector and to encourage farmers and investors to welcome agriculture.
In this article, you will be provided with a list of some government grants and loans available for those interested in booming their agricultural businesses.
These are made available by the federal government to the public and it covers a range of agricultural practices including crop cultivation and livestock rearing. There are a lot of approach the government has provided for individuals and corporate bodies to access agricultural loans. Some of them include:
1. Central Bank of Nigeria (CBN) Agricultural Loan.
This loan project was set up by the federal government to provide low-interest loans to farmers in Nigeria. To achieve this, the Central Bank of Nigeria (CBN) has recently approved the disbursement of about 75billion naira as a loan to farmers and cooperative societies in the 36 states and the federal capital territory (FCT).
This loan can be accessed directly from the Bank of Agriculture.
The Bank of Agriculture of Nigeria is the major avenue the government has employed to give out loans and grant to the public. The bank is owned by the federal government, with the Central Bank of Nigeria and the Federal Ministry of Finance incorporated as shareholders.
The activities of the bank are supervised by the Federal Ministry of Agriculture and rural development. When thinking of government loans, the BOA should be your first choice.
Requirements for Accessing Bank of Agriculture (BOA) Loans
1. You must have maintained a minimum customer account relationship of about six months
2. You must have deposited at least 20% of the required loan amount into the account
3. You must provide collateral, excluding land.
4. You must provide a detailed business plan.
However, the requirements for acquiring the loan are negotiable and may depend largely on the feasibility of your agricultural venture. Further details about the BOA loans are available on the BOA website.
Read Also: HOW TO ACCESS BANK OF AGRICULTURE LOANS