The Central Bank of Nigeria (CBN) rolled out conditions for distribution of more than U$ 1.1 billion through the Micro, Small and Medium Enterprises Development Fund (MSMED), a fund earmarked by the apex bank for farmers in the country. This was revealed by CBN’s Special Adviser on Development Finance on-behalf of CBN’s Governor, in an interactive session with rice farmers in Anambra State. The CBN representative noted that the apex bank had set aside the amount for Anchor Borrowers Programme initiative to diversify the economy by boosting local production of agricultural products, especially rice. CBN is providing the fund to be distributed to farmers at an interest rate of nine per cent (9%) per annum to solve the problem of funding which will help to stem a viable agricultural base with more integrated value chains, enhanced food security, fewer imports and higher productivity, noted the Special Adviser on Development Finance, Mr. Paul Eluhaiwe. Moreover Mr. Paul Eluhaiwe disclosed that, the plan is an addition to the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending’s (NIRSAL). The MSMED aims to solve problems of finance challenging private sector through identifying mechanization and finance to increase rice production in Nigeria. On the conditions for accessing the loan, the CBN representative mentioned that farmers should be trained on the global best agronomical practices. Furthermore, the farmer must be a member of a validated cooperative before applying for the loan. The CBN will find out how much it will take to produce one hectare of rice to determine the amount that will be given to each individual. The idea is to enhance efficient management of the resources. According to the Commissioner for Agriculture, Mr. Afam Mbanefo, the government will play part through supplying tractors, seed distribution, fertilizer and he revealed that the state established an information control centre with the hope of driving home, the rice and cassava value chains.

http://www.vanguardngr.com/2015/11/cbn-states-conditions-for-distribution-of-n220bn-msmed-funds-to-farmers/
http://www.fao.org/3/a-at581e.pdf