FACAN boss advocates Agric Bank’s recapitalization

*Adewunmi, Cassava Commodity president canvasses use of land as collateral.

FACAN), President in Middle, Dr. Victor Iyama & the President of Cassava Growers Association of Nigeria, in white native Pastor Segun Adewunmi during the AGRIKEXPO and Agro food held in Abuja

The National President, Federation of Commodities Agriculture Association of Nigeria (FACAN), Dr. Victor Iyama has resounded that the recapitalization of Bank of Agriculture (BOA) would put an end to challenges facing the financing of farmers in Nigeria while the President of Cassava Growers Association of Nigeria, Pastor Segun Adewunmi canvassed for the use of land as collateral for loan with and other properties for commercial banks for effective agricultural business.

At the first plenary session of the AGRIKEXPO and Agrofood held in Abuja conference centre during a session on  Boosting agribusiness productivity through improved funding: time for creative solution and policy supports Iyama said BOA stands as the only farmers’ bank that can solve the farming financing problem saying no commercial banks would want to lend out customers’money given at double digit  to anybody at  single digit, hence this called for the bank recapitalization for better relevance to its mandate.

In his own view, Adewunmi opined that until there was a paradigm shift of policy that emphasizes commercial agriculture whereby players could use their farmland and other properties as collateral, the banks would not be comfortable funding subsistent farmers and this would make it impossible for Nigeria to compete in commercial production with other countries like China and India.

He said: “Our policy targets subsistent this cannot make us to compete successfully with other countries. No bank will give loans to any unorganized small scale farmers. Agricultural land will be useful as collateral, this will reduce non-payment.”