Index to Nigerian Newspapers

Nigeria's Minister of Agriculture and Food Security, Senator Abubakar Kyari, has announced a $134 million loan from the African Development Bank (AfDB) to boost food security through dry season farming. The project will support between 150,000 to 250,000 wheat farmers with a 50% input subsidy, aiming to reduce food inflation and increase domestic consumption. The government will invest in irrigation infrastructure projects to optimize water usage and mitigate challenges posed by the dry season. The Wheat Development Programme, in partnership with the Federal Government, will expand the capacity of over 42,000 smallholder farmers. The Jigawa State government will provide free high-quality extension services to wheat farmers and has arranged with the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) to provide a guarantee for the balance of 37.5% of the cost of inputs supplied.

The Bank of Agriculture (BoA)  said farmers must take insurance on every loan accessed through the bank,  for risk management.For small loan up to N1 million, the borrower will need to provide two guarantors as collateral. While for amounts over N 1 million, the bank will take property security or bank guarantee. According to BoA the money  farmers are taking from the bank are not grants, it is the capital of the bank that is being used to give to farmers to do their business, if they don’t pay back, the bank capital will be eroded and  the bank will start having challenges in meeting her obligation.