The House of Representatives on Wednesday unveiled plans to investigate the disbursement of all agricultural loans and credit facilities disbursed to farmers from 2009 to date.
The resolution was passed sequel to the adoption of a motion sponsored by Hon Chike Okafor, who frowned at the level of impunity and grave corruption allegation leveled against the NIRSAL management, which poses a great threat to food security in the country.
In his lead debate, Hon Okafor who called for the House intervention noted that Federal Government approved the sum of N275 billion for onward disbursement to farmers in various Schemes to the tune of over N275 billion, ranging from Commercial Agricultural Credit Scheme (CACS) to Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), to help farmers improve agricultural production and guarantee food security in Nigeria.
“The House also notes that apart from increasing food supply, the Scheme is to grant agricultural loans to large and small scale commercial farmers to lower the prices of agricultural produce, generate employment and increase foreign exchange earnings.
“The House is aware that since the approval, most farmers have not been able to access the loans due to stringent requirements being demanded by banks from prospective borrowers and the alleged siphoning of over N105 billion meant for farmers by Management of NIRSAL.
“The House is concerned that food production has not attained the expected level despite the approval of over N 275 billion facilities to farmers; Worried that the projected diversification of the economy from oil production to agricultural production and increase in agricultural output, food supply and promoting low food inflation will not be achieved if farmers are unable to access loans meant to increase agricultural production.”
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To this end, the House mandated the joint Committee on Agricultural Production and Services and Banking and Currency to investigate disbursements and compliance of all agricultural loans/credit facilities to farmers from 2009 to date to enhance national food security in the country.
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