The Minister of Agriculture and Rural Development, Sabo Nanono, says the federal government will obtain $1 billion from foreign banks to purchase farming equipment for local farmers in the country.

Mr Nanono disclosed this at the inauguration of the committee on the Green Imperative Programme on Friday in Abuja.

The banks are Deutsche Bank(DB), Brazilian Development Bank (BNDES) and Islamic Development Bank. He said the loans will be given at the rate of three per cent interest and will be repaid over a period of 15 years.

The Green Imperative Programme was launched by Vice President Yemi Osibanjo in January 2019. The programme emanated from the More Food International Programme which was initiated by Brazil to aid agricultural development around the world.

The programme aims at strengthening the productive capacity of smallholders farmers in African countries. In Nigeria, it seeks to enhance agricultural mechanisation, specialised extension services and agro-processing in the 774 local government areas of the country.

“With this funds, the country is expected to purchase 10,000 units of tractors, 50,000 units of assorted implements and equipment for assembly in Nigeria,” he said.

He listed other expenditure for the loans as “Training beneficiaries for over a period of 10 years, establishment of 780 service centres to aid smallholder farmers.”.

Mr Nanono said only seven tractors are available per 100 square metres in Nigeria, unlike in Kenya that has 700 tractors per 100 square metres.

The minister said Nigeria should have not less than 60,000 tractors, adding that mechanisation is the top priority for Nigerians.

He said the Central Bank of Nigeria (CBN) will receive the fund from DB and make it available to local banks at concessional rates to cover the working capital needs of the service centres for the first two years.

“It is particularly crucial for the sustainability of the project, it will also ensure the repayment of the loan to the two financing institutions,” he said.

The new proposed loan will add to Nigeria’s foreign debt which critics includinga former president, Olusegun Obasanjo, have said is becoming unsustainable.

Speaking on Nigeria’s debt portfolio, late last year, Mr Obasanjo said Nigeria is already borrowing to service existing loans.

“As at 2015, total external debt was about $10.32billion. In four years, our external debt grew to N24,947 trillion or $81.274 billion. To service this current level of indebtedness, we must commit at least 50 per cent of our foreign earnings, such a situation tells about an impending bankruptcy because no entity can survive while devoting 50 per cent of its revenue to debt servicing.”

“In 2018, total debt servicing cost took over 60 per cent of government revenue. As if this is not bad enough, we are currently seeking to add another $29.6 billion loan to our already overburdened debt portfolio. ”

“Our current budget, out of which we are spending 25 per cent to service debt is not our total earnings, a lot of it is also borrowing. We are borrowing to service what we have borrowed and yet we are borrowing more,” Mr Obasanjo said, warning that Nigeria risks bankruptcy.

Insurance cover for agric loan

According to the agric minister, the Islamic Cooperation for the Insurance of Investment and Export Credit, (ICIEC) of the Islamic Development Bank and the Brazilian Guarantee and Fund Management Agency (ABGF) will provide insurance for the non-honouring of sovereign financial obligation.

The insurance will cover the total amount provided by the BNDES and other financial institutions. The ProEx Brazil programme credit line could provide interest rate equalisation for total financing that comes from BNDES.

Source: https://www.premiumtimesng.com/news/headlines/374241-nigerian-seeks-1-billion-loan-to-boost-mechanised-farming-minister.html

Welldone ooo after the booasting now to return the loan na wahala

1billion dollar continue am sorry for this Nation

90% of the funds meant to buy farming equipment will be looted. There is no transparency in the procurement system. And the government will later come to tell us they bought a certain number of equipment for audio farmers.

Mechanization is a major reason Nigerian farmers aren't productive. If you look at rice yeild outputs you'll notice Nigerians lag behind lots countries. I believed Nigeria should copy India's policy on farm mechanization by renting out farm equipment. I'd also like to know if these service centers are government run or private sector.

In India, custom hiring was a key initiative 
that accelerated the adoption of mechanisation among small-holders farmers. This approach facilitated the rental of appropriate machines for a specified period of time, usually accompanied with an operator. It enabled farmers access required machinery without purchasing it.

Anyway I dont like the borrowing. The government has shown it doesn't take these debts seriously. The best example is the rail with subsidized ticket cost. I would like an alternative method for increasing Mechanization.

I wonder how its hard for us to raise money for important things that would help the masses

200bn for university ,money for road construction etc

But easy for them to raise money they can steal like subsidy ,election and the rest

If you still think buhari us different then you must be the dumbest person on earth

Mr Nanono said only seven tractors are available per 100 square metres in Nigeria, unlike in Kenya that has 700 tractors per 100 square metres.

Did the Kenyan government have to borrow billions to get ahead?

Ok. Nice one

By the time Buhari and his administration finished with this country, we will all be collateral.

Nigeria and borrow borrow tactics

Hmmm.... These people wants to loan our future away

Average African leaders in position are not creative enough to think outside the box on how to generate extra income excepts they go for loans

Must we borrow to run everything in his country ??

Trust Government at your own peril!!!

Borrow borrow administration.

Buhari is also wants to borrow from Pension fund. Every worker should ask a matter of urgency kick against tampering with their pension.

Hahaha.....jokers.....another means to siphon money......I miss the Agricultural minister under Gej.

It is true that you can't be successful without seeking for more capital to run a business,
But this depends on the individuals capability to effectively manage the capital to run the business.
I hope they will make judicious use of the capital without embezzling it.

Until the government establishes and passes a bill that will strictly prevent public servants from embezzling public funds,
Corruption will never reduce to it's barest minimum.

Every human is born selfish by nature,even a baby that doesn't know the difference between right and left still want to have everything to himself/herself.

Blue3k:
Mechanization is a major reason Nigerian farmers aren't productive.

Thank you. And that is also a major reason for our general lack of progress.

Technological advancement in agriculture is what moves a nation into the big leagues. When I said this to somebody the person started writing paragraphs smh

RuudVanNisteroy:
90% of the funds meant to buy farming equipment will be looted. There is no transparency in the procurement system. And the government will later come to tell us they bought a certain number of equipment for audio farmers.

BULLSHIIT.

Every sane Nigerian knows the Buhari administration does NOT do ''90% looting" of any project.

If you have any example to disprove me, NAME IT NOW or forever shut your trap.

You must be mistaking this for the Jonathan administration.

It is finished.. The next-generation will paid debt their father know nothing about.. So sad.. Every day we borrow to do every work.. But nothing on sight...

midnighter:


Thank you. And that is also a major reason for our general lack of progress.

Technological advancement in agriculture is what moves a nation into the big leagues. When I said this to somebody the person started writing paragraphs smh

Some people like being primative. I had the same type of people arguing with me in annother thread I dedicated to this topic. There's other core issues like irrigation, bad roads, storage and land use act which hinders farmers access to credit.

Borrowing again? Which kind problem be this? I wonder why they still lend to Nigeria.

Nigerians Politicians are sometimes daft, with less than $1bn USD or N360 billion NGN, Nigerian government can build a tractor manufacturing plant close to Ajaokuta and it would serve all our tractor and heavy machinery needs at very cheaper rate, and we might start selling to other african countries making good forex


.

helinues:
Average African leaders in position are not creative enough to think outside the box on how to generate extra income excepts they go for loans

The USA is the world's largest debtor nation. Currently owing $23.16 TRILLION.

I guess their leaders ain't super creative either, so we're in good company.

Na APC go kill this country finally.

Rosskiye:


The USA is the world's largest debtor nation. Currently owing $23.16 TRILLION.

I guess their leaders aren't creative enough either, so we're in good company.

Copy copy no dey pass,, hope you are aware of that

helinues:


Copy copy no dey pass,, hope you are aware of that

We're not copying them. We don't even owe 1 trillion dollars talk less of 23 trillion.

We just owe 68 billion dollars, so we're good.

Borrowing & taxing na the only
economic policy this yeye Fulani
government sabi.

Gradually selling the nation into slavery again. I weep for the future of this nation