January 07, (THEWILL) – The Oyo state government on has signed a Memorandum of Understanding with the participating microfinance banks as part of efforts to ensure a hitch-free disbursement of the N1 billion single-digit loan to farmers.
The disbursement was part of the government’s palliative measures under the Sustainable Action for Economic Recovery (SAfER).
In his address at the Boardroom of the Corporation, the Chairman, the Agricultural Credit Corporation of Oyo State, (ACCOS) Sheik Taofeeq Akeugbagold said the move was necessary to fast-track disbursement of the loan to the beneficiaries and accredited farmers.
He explained that the board had observed a delay in the disbursement process of the single-digit loan in the early part of December after the official flag-off of the disbursement by some participating banks.
The Board Chairman maintained that the government is interested in alleviating hardship encountered by the farmers in the state occasioned by the removal of fuel subsidy in the country
He therefore urged the authorized financial institutions to fast-track track disbursement of loans to the accredited farmers, adding that more funds would be released as soon as the N1b loan is disbursed.
In his reaction, the Zonal Manager of South West Bank of Agriculture, Mr. Hakeem Esho promised to put more effort into the disbursement of the loan, stressing that his organization has commenced disbursement, promising to intensify efforts.
He implored other finance institutions to commence disbursement without further delay.
The accredited participating financial institutions for the disbursement of the single-digit loan are Bank of Agriculture Ibadan, Oyo and Ìséyìn, Igbo-Ora Microfinance Bank, Onibuore Microfinance Bank, Randalpha MFB, Ifedapo MFB, and Igboora MFB
In his remarks, the Corporation’s General Manager, Comrade Ogundiran Emmanuel, hinted that the government has graciously approved that Officers of Local Government Service as well as the TESCOM Teachers can equally serve as guarantors for farmers who are interested in the loan, this would reduce problem earlier presumed by the farmers.
He enjoined the financial institutions to attend to farmers without further delay as the Board would ensure the availability of funds.
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