Cassava Stakeholders Raises Concerns over Insurance, Finance Bottlenecks

Oluchi Chibuzor

Cassava seed producers have raised concerns over their inability to access loans and insurance cover to hedge against risks.

They spoke at the second edition of the cassava seed business summit organized by the Building an Economically Sustainable and Integrated Cassava Seed System, Phase 2 (BASICS-II) project of the International Institute of Tropical Agriculture (IITA).

Speaking at the event, the President of Industrial Cassava Stakeholders Association of Nigeria (ICSAN), Mr Charles Adeniji, noted that even though the Central Bank of Nigeria, commercial banks and microfinance banks have funding programs, they are usually burdened by administrative and process challenges that make access difficult.

He said, “Generally, financing is available with the Central Bank of Nigeria. The commercial banks and microfinance banks have intervention funds. But there are barriers to getting access, high-interest rates, short tenure, and often strident conditions.”

According to the Vice President of the National Association of Cassava Seed Entrepreneurs Network (NACSEN), Dr Augusta Amajuoyi, said poor access to loans was a major challenge for a private sector-led cassava seed system.

“Seed entrepreneurs find it difficult to get loans because of the harsh conditions given by banks requesting collateral and all manner of things. Sometimes, interest rates are up to 28 percent,” she lamented.

The Summit, themed: “Financing and Insurance Opportunities for the Sustainable Growth of the Cassava Seed System,” was held virtually with over 130 cassava entrepreneurs and stakeholders in attendance.

In his welcome remarks, the Managing Partner at Sahel Consulting, Temitope Adegoroye, stated that finance and insurance were crucial for sustainable growth in the cassava seed system. 

“A sustainable cassava seed system would catalyze the potential of cassava given the country’s status as the highest producer of the crop in the world,” he said.

In the keynote address, the Permanent Secretary of the Federal Ministry of Agriculture and Rural Development (FMARD), Mr Ernest Umakhihe, encouraged seed enterprises to make insurance covers part of their business strategies.