The National
Apple Farmers, Processors and Marketers Association of Nigeria (NAFPMAN), Mr.
Clement Omoyeni Ohikhueme queried the process of loan issuance by the
commercial banks in the country to farmers, saying food producers are being
asked to bring collateral from high brow areas of Abuja and other cities before
they could be given any loan even when their farms can be used as surety.
.
He said ‘’
loan is issued to farmers with demand for collateral even as your farm cannot
stand for you before the commercial banks. All they need are buildings and
skyscrapers in Abuja as they believe that is the only way to secure their money
and which is the wrong perception’’
The National
Producers Processors and Marketers Association of Palm Oil, president, Mr. Alphonsus Inyang also described the demand of
collateral from farmers as a bad way of running agric business in the country
saying that ‘‘until we solve the issue of collateral and building of business
plan before we get it right in this country’’
Inyang urged the Central Bank of Nigeria (CBN) to
emulate the Bank of Ethiopia where only
15% equity is demanded getting a loan for at least 15-20years
without any collateral being asked for.
Mr. Eze Ignatius the representative of the
Mushroom Association also suggested that in other to do away with the issue of
collateral the forum should look into the option of the ESUSU money
contribution, saying that the system has helped to fund lots of projects in the
past and could still be adopted by the forum.
During his address, the Chairman Board of Trustees, MSME Forum Dr. Albert Olajide Akinyemi stressed the need for SME sector to catch on to the opportunity in agriculture as being done by China who is now growing yam, cassava, and cocoa for the purpose of export to Europe and America, pointed the need for the establishment of MSME bank for the BMOs so as to checkmate the complaint of collaterals of the commercial banks.
Adeyemi
added that it was key for the SMEs to come together as one body to find the best way forward for the MSME operators in Nigeria pointed government alone
should not be saddled with the responsibility of private sector’s development, but
rather the SME operators should have a greater bit of the
responsibility.
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