FG, IFAD Train Financial Institutions to Enhance Rural Farmers’ Access to Credit Facility in Kogi

Ibrahim Oyewale, Lokoja

The Federal Government of Nigeria (FGN) in collaboration with International Fund for Agricultural Development (IFAD) has trained financial institutions that have Memorandum of Understanding (MoU) with the Value Chain Development Programme (VCDP) in Kogi State.

The State Programme Coordinator of IFAD-VCDP, Dr. Stella Adejoh, while speaking at training in Lokoja at weekend, said the training was to sensitise the participants on VCDP activities and make them realise the need to give appropriate support to Kogi rural farmers.

She explained that the VCDP engaged consultants who were in Kogi last week to conduct a need assessment for the financial institutions to be able to see the gaps in understanding as well as the implementation.

She said that gaps identified in the programme has informed the need  to bring the financial institutions together to discuss on those gaps and to also build their capacity in the area of agricultural financing to give support to rural farmers in the state.

Adejoh expressed optimism that the training would enlighten the financial institutions to be fully ready to provide financial support to rural farmers under the VCDP in the state.

She emphasised that the training would increase farmers access especially women and youth to financial services as well as providing insurance cover for them.

She disclosed that over 1000 rural farmers had been profiled across the five benefitting local government areas in Kogi, being supported on demand driven basis.

According to her, the goal and objectives of VDCP is to reduce rural poverty, increase food security and accelerate economic growth on a sustainable basis.

She stressed that the incomes and food security of poor rural households engaged in production, processing and marketing for rice and cassava in the targeted local government areas (LGAs) would be enhanced on a sustainable basis.

Also speaking, a Consultant to IFAD-VCDP Kogi, Mr. Ariyo Olanrewaju, said the training was on technical assistance to financial institutions that offered services to VCDP beneficiaries in Kogi.

”One of the things we want to show the financial institutions during the training, is for them to see that agriculture is now a business.

”The goal of financial institutions is to make profit, so if they see that agriculture is a business, and we also offer them the technical support to manage the risk in agriculture, they will be willing to give loans to the farmers,” he said

He said the training would go a long way in ensuring that rural farmers have easy access to loans from financial institutions as the identified knowledge gap would have been addressed.

On his part, the Rural Finance Officer, IFAD-VCDP Kogi, Mr. Reuben Joshua, said the training would ensure financial inclusiveness of farmers benefitting from the program and bridge the gap.

Joshua added that the farmers would enjoy various financial services being rendered by the financial institutions in terms of credit facility which had been a challenge.