The bill seeking credit scheme for Commercial agriculture in Nigeria in partnership with the Central Bank of Nigeria sponsored by Senator Mao Ohabunwa (PDP) Abia North Senatorial District has passed through the second reading in the Senate.
In his lead debate on Wednesday, Ohabunwa said, farmers in Nigeria currently contribute over 43% of the nation’s gross domestic product and two third of employment generation, stressing that if there was legal framework for advancing loans to the country’s critical sector, it could drive the economy at a larger scale.
“A Bill for an Act to establish the Agricultural Credit Scheme to promote Commercial Agriculture in Nigeria, ensure credit support for production, storage and processing of target commodities, market development, agricultural enterprise and for other related matters, 2016,” he submitted.
Ohabunwa added that peasant farmers would have the opportunity of mechanized farming in commercial quantity for export and such could happen if there was coordinated credit scheme.
Senator Ahmed Lawan (APC), Yobe South allayed fears that in putting laws together as it concerns agriculture, it should be taken into consideration those who were ready to divert funds in order to make sure that such dedicated credit was not diverted.
He recalled that in the past, the federal government earmarked N200billion with the Central Bank for Commercial agriculture, but was embezzled as the credit never got to farmers.
“Mr. President, Distinguished Colleagues, in times past, the sum of N200billion Credit Scheme was given by government, but was embezzled by politicians disguised as farmers”, he pointed.
Almost in the same vein, Senator Magatakarda Wammako regretted that agricultural credit schemes in the past were used as political patronage,emphasizing that if such continues, it would spell doom for the nation.
In what he described as absentee farmers, Senator Emmanuel Bwacha (PDP) Taraba revealed that these people would hijack funds set aside for agriculture by government and will put in fixed deposit for interest, noting that such was not healthy for the nation’s economy over the years.
Abdullahi Adamu on his part, berated Commercial Banks in the country for not being interested in investing in agriculture.
He said at a point, Bank would subject farmers to unnecessary demands by asking them to pass through insurance of the Banks that would further exploit them.
Adamu said, if the bill becomes an Act, it compels to grant loans through flexible, but achievable procedures.
“Distinguished Colleagues, I do know as a Farmer of many years standing that Commercial Banks in Nigeria were not interested in investing in agriculture, and would even subject farmers to harrowing experience by asking you to pass through their own insurance companies,” he noted.
After various contributions by Senators in favour of the motion, Senate President, Bukola Saraki commended the Sponsor of the bill, stressing that agriculture was so critical to the economic prosperity of the nation and will as well provide food security.
He referred the bill to Senate Committee on Agriculture to submit it’s report in two weeks time after it went through its second reading.
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