BOA advocates e-credit for farmers

Prof Danbala Danju Md/CEO Bank of Agriculture

Agent and ATM networks, mobile phone banking, and the debit cards can all be used to reduce the costs of lending to rural and agricultural clients, while making it easier for rural farmers to access financial services.

The Managing Director and Chief Executive Officer, Bank of Agriculture, Danbala Danja made this assertion in his presentation on the topic: Optimizing the financial support for Agriculture and Agro-business in Nigeria Availability, Accessibility and Limitations.

Danbala Danja who spoke at the sensitization programme on ECOWAS Trade Liberalization scheme held at Royal Choice Inn Makurdi, Benue State, further argued that the Growth Enhancement Scheme (GES) where farmers were provided inputs like seedlings, fertilizers and chemicals was a bold step in the right direction. 

He lamented on the fall in budgetary allocations to the agricultural sector from 1.7% in 2013 to 1.44% in 2014 and to 0.9% in 2015 which are against 10% of the total annual budget of a member country in which Nigeria is a signatory at the Maputo declaration which according to him is unacceptable.

The MD/CEO Bank of Agriculture observed that the agricultural policies of ECOWAS countries are more competitive than complimentary stressing those countries of the community export the same primary produce including livestock on hoofs, meat, fish nuts and cereals.

There are specific areas where Nigeria and other ECOWAS countries stand to benefit by the harmonization of their agricultural policies, he said. One such area according to Bala Danja is in the development of the large river valleys such as those of Nigeria and the Chad Basin, adding that the harmonization of processing and distribution of livestock products would also help reduce the price disparities prevailing between the countries of the sub-region.

Speaking on the Nomads who control the bulk of the cattle in West Africa, moving freely across National Boundaries in search of food and water, he suggested a possible solution would be the establishment of common grazing reserves which cut across national frontiers at a cost to be borne by ECOWAS.

Danbala Danja who was represented by the Manager, Bank of Agricultural Makurdi Benue State Mr. G. T. Asema, noted that 70% of the country’s poor lives in rural areas and directly or indirectly depend on agriculture as their main source of income and employment.

Despite their socioeconomic importance, smallholders tend to have little or no access to formal credit, which limits their capacity to invest in the technologies and inputs they need to increase their yields and incomes and reduce hunger and poverty, both their own and that of others, he stated. 

He posited that funds should be deployed in consonance with appropriate commodity value chains so that optimum satisfaction can be derived by creditors and agro entrepreneurs alike.

Welcoming participants Amb. Bulus Z. Lolo Permanent Secretary Foreign Affairs stated that the workshop was aimed at assessing Nigeria’s participation and involvement in the ECOWAS trade liberalization scheme, targeted at appraising the challenges being encountered by the Nigeria Business Community in the course of the implantation scheme.

The scheme is thereby programmed to promoting intra-community goods by ensuring removal of import duties and prohibitions/restrictions on goods originating or produced in any of the member states.

Ambassador Bulus lolo, Permanent Secretary Ministry Of Foreign Affairs, who spoke at Royal Choice Inn, Makurdi noted that challenges like bureaucratic bottlenecks and relative low awareness among the Nigerian Business Community in the bountiful opportunities inherent in the scheme and how to tap into it are further worsened by the negative consequences associated with smuggling of goods made outside the West African sub-region.

He challenged the region’s young entrepreneurs, whose enterprises are being nurtured to become the backbone of Nigeria’s industrial and private sector growth and need to be fully abreast with the opportunities available in the scheme, among other ECOWAS programmes.

The Under Secretary African Affairs Division, Ministry of Foreign Affairs Amb. Godwin Agamah, had on the occasion enjoined participants to assist in ensuring that member states comply with the provisions of ETLS especially on the issue of Rules of Origin.                                  

He pointed out that the sub-regional body is a huge market that is vital to our national and sub-regional development.

Amb. Agamah urged members of the region to desist from allowing companies to hide under ETLS to sell products that are manufactures in third countries, but rather fast-track the completion of sub-regional infrastructure especially in the transportation sector so as to boost the scheme.