Nigerian Security and Civil Defense Corps (NSCDC) has released a statement saying that most of the rice farmers who benefitted from the Central Bank of Nigeria’s (CBN) 2018/2019 wet season loan of N301.85m in Benue State have run away.
The NSCDC, through its Anti-Corruption and Transparency Unit, disclosed this during a meeting with the Rice Farmers Association of Nigeria and representatives of banks in the state, saying it would deal with all defaulters within two months.
The State Commandant, NSCDC, Dr. Phillip Okoh, said out of N301.85m loan granted to rice farmers in the state, only N5.17m were repaid, leaving a balance of N296,674,000 million unpaid.
He said, “The CBN thought it wise to dole out loans to rice farmers in the state to the tune of N301.85m. Since then, most of the farmers have used the funds to farm and harvest but most of them did not pay back the loan.
“This is blocking the chances of other farmers from getting the loan. The total number of benefiting farmers is 2,364 for 2018/19 wet season farming. Why? It is because of the misconception that the loan was for COVID-19 free loan.
“We are here to inform the general public that the loan is not free but a rotatory loan, which must be paid back. That’s why the bank cried out to NSCDC to help. If nothing is done to ensure the recovery of this loan, it will threaten the food production of the state.”
The NSCDC boss, who gave a grace of March ending to pay back the loan, said, “After the expiration of the grace, anyone who defaults will be dealt with accordingly.”
The State Chairman of the farmers association, Fidelis Akosu, who disclosed that the union secured loans for 2,264 farmers, admitted that less than one percent of those who got the loan paid back.
“When the loan came, people thought it was not a repayable loan and so they collected for their wives and children, and now, it is difficult for them to repay the loan,” he said.
The representative of the CBN, Usman Abraham explained that the loan given to rice farmers was to ensure food security in the country and to empower smallholder farmers, adding that it had over the years succeeded in Bauchi, Jigawa, Yobe, Gombe, Kebbi, and the Federal Capital Territory, among others.
“From the figures available to CBN in terms of repayment of these loans, Benue is termed to be a bad state when it comes to loan repayment, and if this trend is not curbed, over time, the CBN will have no other choice than to stop giving such loans to Benue farmers,” he added.
