Oyo State Government will, on Monday, disburse ₦1.5billion interest-free agric loan to 1,000 young agri-prenuers in the state to enhance their agribusiness enterprises.
Director-General of the Oyo State Agricultural Development Agency (OYSADA), Dr Debo Akande, disclosed on Wednesday while addressing a press briefing on the upcoming YEAP SAfER loan disbursement to the young agri-prenuers.
The initiative is a continuation of the state’s Sustainable Action for Economic Recovery (SAfER), programme, aimed at mitigating the economic hardship caused by the fuel subsidy removal
Akande said the planned disbursement of the ₦1.5billion interest-free agric loan was a demonstration of the Governor ‘Seyi Makinde-led administration’s commitment to youth empowerment and the development of the agriculture sector in the state.
Akande added that it was also in line with the unwavering determination of the present administration in the state to ensure an all-round development of the agriculture sector, as well as the agricultural value chain.
The OYSADA Director-General also disclosed that the interest-free loan would be disbursed to the beneficiaries, in partnership with MasterCard (Canada), through First City Monument Bank (FCMB).
He described the injection of the ₦1.5billion interest-free agric loan as step forward from training to transformation of the beneficiaries, noting that they stand to gain more, of the young agri-preneurs can effectively utilised the loan to develop their enterprises.
Akande revealed that, OYSADA the Governor Makinde-led administration, has already equipped 5,020 youths with modern agribusiness skills, disclosing however that he was not oblivious of the fact that training without capital often leads to stagnation.
To bridge the gap, he said OYSADA collaborated with First City Monument Bank (FCMB) and MasterCard Canada to provide government-backed financing for those with active enterprises.
Speaking on the selection process for the beneficiaries of the interest-free agric loan, Akande explained that it was a masterclass exercise, employing what he described as a “triangulation method.”
According to him, a thorough verification exercise was conducted to confirm that the various entrepreneurs were genuinely engaged in agricultural projects.
He disclosed that OYSADA embarked on site inspections to validate and authenticate the business locations, while the applicants were also engaged in physical interviews to assess their vision and viability.
To ensure financial thoroughness, the OYSADA boss said a final auditing was carried out by FCMB to ensure that beneficiaries of the loan have clean credit history.
He, however, stated that, though the agric loan is collateral-free, but it is not totally free in the sense that the success of the first disbursement would be a yardstick for the upscaling of the beneficiaries to accessing larger loans.
Dr Akande disclosed that the dream of OYSADA, under the Governor Makinde administration, was to use agricultural value chain as an impetus and a global for international investments in Oyo State.
He disclosed that, through strategic navigation, OYSADA, established some five years ago after the outbreak of COVID-19, has repositioned the state on the global agribusiness map.
According to him, the present administration has, to date, attracted over ₦46.6 billion in private investments and also secured nearly $170 million from international development funds.
This influx of capital, he disclosed, has birthed a new industrial era, attracting 14 major processing companies.
Using Fasola Agribusiness Hub as a testimony of the state government’s philosophy of integration, he said the hub, which is Nigeria’s first designated agricultural transformation centre, has successfully linked approximately 8,200 smallholder farmers with major investors.
“We are seeing the tangible impact of these investments,” Akande said, adding, “The Fasola Agribusiness Hub alone has attracted ₦17 billion, with 14 agribusiness companies cultivating over 950 hectares.
“They are processing everything from cashew and cassava to tomato, alongside dairy production from nearly 1,000 lactating cows.
“Some of these companies focus on cultivation, others on processing, and one even provides equipment leasing.
“These investors have cultivated 950 hectares without government intervention in inputs or labour. This, in its purest form, is the essence of agribusiness.”
Dr Akande also dismissed speculations that the youths taken to Nasarawa State for training in various forms of agribusiness are nowhere to be found or that the people of the state were not feeling their impacts in terms of food security.
According to the OYSADA boss, the beneficiaries of the training programme at Nasarawa State were on ground in various parts of the state and they have been effectively contributing their quotas to the development of the agriculture sector in the state.
Mr Friday Nwokolo, Head, Private Sector Financing, who represented the Managing Director of the bank at the press briefing, also corroborated the OYSADA boss as regards the transparency and sustainability of the interest-free agric loan.
Nwokolo disclosed that agriculture initiative of the Makinde administration is a serious business with FCMB having been engaged in partnership with the state government since the past 18 months.
He said the bank was actively involved in the funding aspect to confirm that young agri-prenuers were truly on ground and genuinely committed to and involved in the agric value chain in their various locations.
Nwokolo added that FCMB has also checked the financial standings of the would-be beneficiaries to ensure that they were not in any way indebted to any financial institutions.
Key Details Of The Agric Loan
Total Fund: ₦1.5 billion, comprising ₦500 million in counterpart funds from the state government and ₦1 billion from FCMB.
Target Beneficiaries: 1,000 young agri-prenuers with active enterprises, specifically those trained and certified under the Youth Entrepreneurship in Agribusiness Project (YEAP).
Purpose: To expand the agribusiness sector, enhance food production, and create jobs for youths.
Loan Structure: Beneficiaries are selected based on merit and can access financing, often in clusters, for various agricultural activities.
Eligibility: The beneficiaries of the loan must be certified by OYSADA and hold valid business identification.
