The available land for farming activities in Nigeria is simply overwhelming. A recent report revealed that Nigeria has about 84 million hectares of arable land, of which only about 40% has been cultivated. Add our favorable climatic conditions that sustain the growth of agricultural products such as groundnut, rice, cassava, cocoa, cashew, palm oil, to mention but a few, and you begin to get the picture – Agriculture in Nigeria is a profitable business.
The problem young people face when they think of going into entrepreneurship is no longer whether agriculture business is worth investing in. The problem is twofold:
- What type of agriculture business to start?
- How to raise capital to start an agriculture business?
In this very post, we will explore some government grants and loans available for Nigerian farmers to keep their business booming. One of the most reliable strategies that any government can use to encourage its citizens’ participation in agricultural practices and farming is creating avenues where they can access government grants and loans.
To fast-track the development of the agricultural sector, and to encourage farmers and investors to embrace agriculture, the federal government of Nigeria has set up different schemes and programs to provide funds regarding loans and grants to large and small-scale farmers. farmers. These credit facilities are made available by the federal government to the public and cover a range of agricultural practices including crop cultivation and livestock rearing. There are a lot of avenues the government has provided for individuals and corporate bodies to access agricultural loans. Some of them include:
- CBN agricultural loan to farmers in Nigeria.
- Bank of Agriculture loan
1. CBN agricultural loan :This loan scheme was set up by the federal government to provide low-interest loans to farmers in Nigeria. To achieve this, the Central Bank of Nigeria (CBN) has recently approved the disbursement of about 75billion naira as the loan to farmers and cooperative societies in the 36 state and the Federal Capital Territory (FCT). This loan can be accessed directly from the Bank of Agriculture.
2. Bank of Agriculture (BOA) loans : The Bank of Agriculture of Nigeria is the main channel that the government uses to provide loans and grants to the public. The bank is owned by the federal government, with the Central Bank of Nigeria and the Federal Ministry of Finance incorporated as shareholders. The bank’s activities are controlled by the Federal Ministry of Agriculture and Rural Development. When thinking of government loans, the BOA should be your first choice. Some of CBN partner banks ;
- Union Bank
- First Bank
- Zenith Bank