The Central Bank of Nigeria (CBN) has asked the members of the National Cotton Association of Nigeria, Kano chapter, that participated in the government’s Anchor Borrower Programme to refund the loans.
Naija News Understands that Branch Controller, CBN, Ali Abdulkadir, disclosed that the 30,000 cotton farmers, who enjoyed the loan facility, should not delay in repayment, so as to enable other farmers to benefit from the scheme.
“It is a revolving fund as you collect, you produce, you sell and then pay the loan so that others that have not benefited earlier can also benefit,” said Ali Abdulkadir.
The CBN branch controller added that each of the cotton farmers got N174, 000 (inputs and cash), as total loan package amounted to N5.2 billion.
Method of Repayment: To repay government, each farmer is expected to give 25 bags of 40Kg, which is an equivalent of the amount received as loan back. The recovery process was triggered because cotton is only produced during the rainy season and as such, cotton farmers should have harvested what they planted.
“I am advising the leadership of the association to embark on an aggressive recovery because the loan was given to farmers through the association because the association know them,” Abdulkadir said.
The CBN also disclosed it had extended a similar loan programme to rice, wheat, cassava and other commodities to enhance food production in the country.