The agricultural sector in Nigeria has over the years been lacking adequate provision ranging from finances, farming implements, negligence among others. This sector has been called a gold mine waiting to be explored by analysts as it has the largest employer of labour in Africa, Nigeria particularly according to report it has been reported and revealed that Nigeria has about 84 million hectares of arable land.
The climates of Nigeria favours the growth of agricultural products such as rice, yam, cassava, cocoa, cashew, palm oil just to mention a few. One of the problems youths and farmers face when it come to agricultural practices is how to raise capital to start an agriculture business? Nigerian agricultural loan can be obtained from both Commercial Banks and Micro Finance banks
The government has tried endlessly to improve the agricultural sector.Report says the central bank of Nigeria has approved the disbursement of about N75billion as loan to farmers in the 36 states of Nigeria. An agricultural based non governmental organization, united farmers forum (UYFF), secured a loan of N10 billion from First City Monument Bank (FCMB) to empower 10,000 young farmers in Nigeria. First bank of Nigeria has provided help through allowing young people get agricultural loan.
This brings to the conclusion that Nigerian agricultural loan can be obtained both from financial institution and non governmental organization.
To get loan isn’t just barging into the bank or just asking the non-governmental organization for help,their is more to it.
Firstly you have to know is the kind of agricultural business that has access to agricultural loan. Some kind of agricultural loan that can give you access to Nigerian agricultural loan includes cassava farming, poultry farming, fish farming, cotton farming , oil plant farming, pig farming, rice farming, maize farming, snail farming, among others.
Secondly is you need to visit your states banks of agriculture (boa) to know the full Agric loan requirement and how you can proceed with your application for a loan.
It is important to know that Agric loans is not given only by the Bank of industry .Some commercial banks give Agric loans but only through the Federal government and other bodies. Some of this commercial banks include Union bank, United bank for Africa, Stanbic IBTC, First bank among others, these banks loan institution will require that existing farmers present a financial statement showing their income statements so far.
To access the Nigerian agricultural loan is suitable for anyone who wants to expand his/her farm or start up an agribusiness.