AFAN chairman attributes inability of farmers to access loans to high interest rates

Whatapp News

 




ILORIN – The chairman of the Kwara branch of All Farmers Association of Nigeria (AFAN) has attributed the failure of members of the association to access loans for their activities to high interests charged by banks.
The AFAN Chairman, Mr Daniel Ajiboye, made the disclosure in an interview with the News Agency of Nigeria (NAN) in Ilorin on Wednesday.
He observed that some agricultural projects might be experiencing setbacks as a result of
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the development.
“It will be a risky venture for crop farmers to access loans from banks, considering that weather conditions and price fluctuations can affect the repayment of loans.
“If it is a lucrative project like purchasing produce, it is less risky because you cannot sell below the cost price but with crop farming, you determine the weather, the price, as well as some unforeseen disasters.
“So the risk in taking loan from banks is very high and I think they charge so much to discourage farmers.
“Government and financial institutions are making mistakes in this regard because without crop farming, no creature, including human beings, can survive,’’ he said.
Ajiboye decried the non-involvement of AFAN in the activities of Nigerian Agricultural Insurance Cooperation, saying members of the association were not deriving much benefits from the cooperation.
He said “NAIC has been deducting money from members’ accounts but officials from the cooperation never visit farms for inspection.
“We have never been carried along, we don’t know the percentage and the package they have for us.
“They only send alert to us that certain amount has been deducted from our account for insurance.’’ (NAN)

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