Experts seek reduction in lending rates for agribusinesses

SENIOR Advisor, Agriculture Finance, AFOS Foundation-germany, Dr. Michael Marx has advocated that only interventions leading to a sustainable reduction of operating costs will have a sustainable effect on the lending rates of the financial sector to improve agribusinesses in Nigeria.

The financial and agriculture experts made their positions recently at the fourth yearly Symposium of Nigerian Microfinance Platform themed: “Serving the agricultural sector through micro-banking”, in collaboration with LA FAYETTE, AFOX, LAPO Microfinance Bank limited, Accion Microfinance Bank and NPF Microfinance Bank Plc in Benin City, Edo State.

Presenting a paper with topic, “Perspective of serving the agricultural sector through microfinance banks”, Marx said AFOS initiative in agricultural finance is aimed at supportin some MFBS to expand agriing Microfinance banks cultural lending and

(MFBS) and agribusinesses in implored the Central Bank of Nigeria.nigeria (CBN) to offer refiMarx who decried that a bignance for term loans (1-3 ger chunk of agricultural years) in Naira to MFBS to finance will continue to enable MFBS lend for small come from the commercial equipment, without policy bank, urged the Central Bank strings attached. of Nigeria (CBN) to increase Marx also called on the the loan ceiling for MFBS Central Bank of Nigeria(cbn) from N500,000 to N10 to request MFBS and MicroMillion to compensate for Finance Institutes (MFIS) to inflation and allow for express their interest rates financing of farmers groups and charges as Annual and value chains operations. Percentage Rate (APR). He noted that there is a He added that micro-lendgreat potential and interest ing will certainly remain the domain of MFBS noting that the big questions are areas of competence, capacity to serve and interest.

Marx said the goal of AFOS Foundation is to enhance the efficient management of local agricultural value chains and related food production and processing industry as well as improve the performance and outreach of the Mfb-subsector by developing new dual vocational training systems in the agricultural sector and conducting training and providing technical support for accelerated lending for agricultural purposes.

Managing Director/chief Executive Officer ,LAPO Microfinance Bank, Dr . Godwin Ehigiamusoe harped on the need for greater engagement between the MFBS and the CBN’S Development Finance Officers (DFOS) at the State Level and the continuous capacity building of Microfinance institutions on agricultural finance.