Association lauds Tinubu’s 9% interest rate on loans

The Agbekoya Society of Nigeria has lauded President Bola Tinubu for offering nine per cent interest rate on loans to Micro, Small and Medium Enterprises (MSMEs).

The society’s Secretary-General, Dr Adegbenro Ogunlana, made the commendation in an interview with our correspondent in Lagos on Tuesday.

Our correspondent reports that Agbekoya Society of Nigeria is the parent body of Agbekoya Farmers Association, a leading agricultural organisation with over 3.4 million members.

Ogunlana reacted to the president’s national broadcast on Monday night.

Our correspondent reports that Tinubu had in the broadcast said the government would fund 100,000 MSMEs and start-ups with N75 billion.

Tinubu said that under the arrangement, an enterprise promoter would get between N500,000 and one million Naira at nine per cent interest rate per annum and a repayment period of 36 months.

The president said the low-interest rate was to further ensure that prices of food items were affordable.

Reacting, Ogunlana said the nine per cent low-interest rate to MSMEs, especially farmers’ enterprises, would further support the agricultural sector.

“Agbekoya believes that the president’s plan would enhance agricultural production toward improving food security by ensuring a steady and sufficient supply of food to the population.

“However, it is essential to ensure that implementation of these measures is well-managed.

“This is to prevent issues like over-indebtedness and unsustainable land use.

“The administration should ensure that monitoring and support mechanisms are vital to maximize the benefits of providing land and low-interest loans to farmers,” he said.

Ogunlana said the group would provide adequate security to farmers against bandits and any other security threat.

He expressed readiness to work with the present administration on policies that could drive food security and community policing in the South-West Geopolitical Zone.

He said: “I believe that making farms safe and funding agricultural mechanisation will create, not only more food, but also jobs to engage restless youths who have turned to crime for a living.”

Agbekoya Society of Nigeria is dedicated to promoting sustainable farming practices, agricultural innovation, rural development and community policing.