The Kwara State Government has blamed the delayed commencement of its new commercial agriculture model on the non-release of approved funds by Union Bank of Nigeria to Outgrower farmers in the state.
Making the clarification in Ilorin, Governor Abdulfatah Ahmed, said the state government had put all structures in place for the commencement of its 10 Outgrower farmers per local government scheme but was hampered by Union Bank’s refusal to release approved funds under the Commercial Agriculture Credit Scheme (CACS).
He stressed that based on its agreement with the bank, the state government had assured the 173 farmers of its preparedness to ensure suppliers of required farm inputs were paid directly for efficiency.
“We have structured the farmers into cooperatives under our model of 10 farmers per local government and also on the basis of crops. This is to enable them access secure approval for funding which will be paid directly to suppliers of inputs in our Agric Mall. However, the takeoff has been delayed due to Union Bank holding on to approved funds meant for the farmers despite the fact that we have complied with all requirements”, said Governor Ahmed in a statement by his spokesperson, Dr. Muideen Femi Akorede.
Governor Ahmed regretted that the prolonged delay in the release of the funds had not only hampered his administration’s plans to extend commercial farming to all parts of the state but had also disrupted the farmers’ plans it more expensive to access credit directly from commercial banks.
Speaking further, Governor Ahmed restated his administration’s strong determination to make commercial agriculture the pivot of economic growth and economic empowerment of farmers.
While urging the affected farmers to exercise patience while the issue is resolved, Governor Ahmed called on farmers that had already benefitted from the agricultural credit scheme in the state to repay on schedule so that more farmers can gain access.
