Increase Agric Sector Funding, FG Tells Bank of Industry

The Federal Government on Wednesday called on the Bank of Industry to increase lending to the agriculture sector in order to reduce the level of unemployment in the country.The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, gave the charge during a meeting with the management team of BoI led by the bank’s Acting Managing Director,Mr Waheed Olagunju.
In order to increase the level of output of the sector, the minister said more funds should be made available by the bank to the youth.Ogbeh said with the attention of the current government fixed on diversifying the economy away from oil, there is need to boost productivity in the agriculture sector particularly in the area of agro-processing.
He said currently, there is a lot of disenchantment in the country as a result of the huge level of unemployment, adding that the government would no longer tolerate the era where banks have apathy to agricultural lending.
He said, “I will like to request your bank to see what you can do to assist us in financing young people in agro processing business.
“We have been running a system in the commercial banking sector where the door was almost shut to beginners and I don’t want to go into details of how interest rate has remained high for 30 years between 1986 and now.
“Young people are finding it difficult to access loan. If we want young people to live and achieve their aspiration,we need to do what we can to shift the focus by creating a platform for them to access loan to become entrepreneurs.
“The degree of frustration and disenchantment among the youth is very high and it’s time we did something to make funding available for businesses.”
The minister said the government would put in place adequate mechanism as well as the needed support to ensure that the loans are repaid by borrowers.