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Farmers are excited about CBN’s 9% credit policy

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Farmers have applauded the nine per cent interest rate credit policy of the Central Bank of Nigeria (CBN) to the agriculture sector but called for prompt monitoring of the Commercial Banks to guarantee effective implementation

Under the new policy, agricultural, manufacturing and the sectors considered as growth and employment stimulating, can borrow long term as much as N10 billion at consolidated nine per cent interest rate.

The CBN released the new new credit policy, called Guidelines for Accessing Real Sector Support Facility (RSSF) through Cash Reserve Ratio (CRR) and Corporate Bonds on Thursday.

National President Rice Farmers Association of Nigeria (RIFAN) Alhaji Aminu Goronyo said that rice farmers under the CBN Anchor Borrowers Programme (ABP) had being enjoying the nine per cent lending rate since 2015.

Goronyo expressed optimism that the policy would help improve production of other agriculture commodities in the sector.

He said the nine per cent lending rate under the ABP facilitated the increase in rice production from between two million and 3.5 million tonnes to nine million tonnes annually.

He advised farmers to key into the policy to enable them benefit from the intervention.

“Before the single digit interest rate by the CBN, our production annually was not more than between 2 million and 3.5 million tonnes per annum but today, we are producing almost nine million tonnes because of that intervention.

“I am sure it will be the same for other commodities that will enjoy this intervention,’’ Goronyo said.

In interviews conducted by the News Agency of Nigeria (NAN) National President, Women Agro Allied Farmers Association, Mrs Lizzy Igbine, said although the nine per cent lending rate would encourage farmers to increase production, there was need to reduce it to five per cent.

“We are asking for as low as five per cent, the CBN still has to do more.

“ It will go a long way to help us but we hope there won’t be any hidden rates or charges that farmers will pay after taking the loans,’’ she said.

President of National Cashew Association of Nigeria (NCAN) Mr Tola Faseru appealed to the CBN not to allow the policy to be a `lip service’.

Faseru, who said it was not the first time the CBN was directing commercial banks to lend to agriculture, noted that most banks had not complied with such directive.

According to him, most commercial banks viewed agriculture over the years as very risky. “I hope it won’t be lip service.

“I hope the commercial banks will comply with that because there was a time CBN told them that out of their profit, certain percentage should be channelled to agriculture and the manufacturing sector but they never kept to it.

“Before now, most of the commercial banks have been shying away from lending to agriculture, they like the quick return type of business.

“They see agriculture as very risky but that is where we have our comparative advantage as a country, so we need to develop the sector to be able to diversify the economy away from oil.

“This is a very laudable policy by CBN and we commend CBN for that but we plead with the CBN to put a mechanism in place to check compliance by commercial banks.

“I think CBN has been strong recently in their supervisory role of commercial banks.

“We trust that they will be able to follow through to ensure that the policy is implemented by the commercial banks; it will go along a way to help us grow the agriculture and indeed the export sector,’’ he explained.

National Publicity Secretary, National Fish Association of Nigeria Mr Chidike Ukoh said the expectation of farmers was for the CBN to still bring down the lending rates to about five per cent.

Ukoh said that lending rates on agricultural production were being subsidised as low as about two per cent in developed countries.

“When you have mass production of food, industries will have raw materials and the productivity level will bring aggregate income in the economy.

“The Gross Domestic Product (GDP) will be much in such volume of production. We are making a case for five per cent.

“If the commercial banks will comply with the single digit rate, it will be very nice. It is a development that we need to watch,’’ the publicity secretary said.

NAN recalls that guidelines followed the recommendation of the Monetary Policy Committee (MPC) of the CBN at its 119th meeting held between July 23 and July 24.

The MPC had emphasised the need to increase the flow of credit to the real sector of the economy, to consolidate economic recovery.

NAN reports that the new policy marks a big departure from the excruciating interest rate regime of 25 to 30 per cent that was blamed for stifling agriculture, manufacturing and other ventures in the country.

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ORJI ISRAEL with Agency News

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Uganda’s Relief Emergency Response Project
Uganda Landslides

The Board of Directors of the African Development Bank Group (AfDB) has approved a grant of $500,000 from its Special Relief Fund to support Uganda’s Relief Emergency Response Project.

The financing will provide urgent assistance to communities severely affected by floods and landslides in the Bulambuli, Kasese and Ntoroko districts, including the provision of family-size tents to an estimated 1,500 internally displaced persons (IDPs). The goal is to improve living conditions in camps where thousands have sought shelter since the disasters.

From 17-19 August 2025, heavy rains in the Mount Elgon subregion in eastern Uganda flooded the mountainous Bulambuli, Sironko and Mbale districts and triggered landslides in the neighobring Namisindwa district.

Local authorities reported 5 deaths, 50 injuries, and an estimated 2,000 homes damaged or destroyed, with 5,000 displaced and 15,000 impacted in total. In recent years, extreme weather events have displaced families, destroyed infrastructure and disrupted livelihoods across the country’s Rwenzori and Elgon regions, where these districts are located.

“Beyond emergency relief, the project is an investment in dignity, safety, and recovery,” said Mercuria Assefaw, the Bank Group’s Division Manager for Water Security and Sanitation. “Providing decent temporary housing will not only address a priority shelter need and improve living conditions for displaced families, it will also stimulate the local economy through procurement and logistics.”

The Office of the Prime Minister of Uganda will implement the project through the Department of Relief, Disaster Preparedness and Management. By prioritising rapid procurement and efficient delivery, the project will create opportunities for local suppliers and service providers, contributing to the wider recovery of flood-affected communities.

Activities will be completed within six months, ensuring timely relief for those in urgent need of shelter. With this support, the Bank will strengthen Uganda’s humanitarian response and contribute to rebuilding community resilience.

Assefaw added, “This grant reflects the Bank’s solidarity with Uganda. By providing immediate relief, we aim to restore hope and stability as communities continue their journey of recovery.”

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Raw Shea Nut Export Ban: a win for Nigeria, West Africa – Stakeholders say

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Raw Shea nuts

In a landmark move to industrialize Nigeria’s agricultural sector and capture greater value from its natural resources, His Excellency President Bola Ahmed Tinubu has approved a six-month temporary ban on the export of raw shea nuts (Vitellaria paradoxa).

The directive, which takes immediate effect, was conveyed through the Office of the Vice President. His Excellency, Vice President Kashim Shettima, stated, “We are not closing doors, we are opening better ones. Today we plant the seeds of an industry that will yield fruit for decades to come; for our women, for our economy, and for Nigeria’s place in global trade.”

The decision follows a rapid assessment by the Presidential Food Systems Coordinating Unit (PFSCU). The assessment revealed that despite producing nearly 40% of the world’s shea nuts; an estimated 350,000 metric tonnes annually, Nigeria captures less than 1% of the global shea market, valued at $6.5 billion.

This strategic policy is designed to protect and grow Nigeria’s domestic shea industry by halting the annual loss of over 90,000 metric tonnes of raw shea to informal cross-border trade. The ban will secure raw materials for local processors, who currently operate at only 35-50% capacity—boost jobs and incomes in rural communities, and protect a value chain where 95% of pickers and processors are women.

The decision positions Nigeria alongside regional leaders in shea production, including Ghana, Togo, Mali, and Burkina Faso, which have already implemented similar restrictions to develop their local processing industries and retain value within their economies.

Eniola Akindele, Data and Impact Assessment Manager of the Presidential Food Systems Coordinating Unit (PFSCU), underscored the untapped potential in the Shea value chain ‘’Shea has the potential to become Nigeria’s untapped goldmine. Beyond its well-known use in cosmetics, shea is increasingly in demand as a substitute for cocoa in global chocolate and confectionery industries. With the right processing capacity and investment platforms, Nigeria can transform its currently underutilized shea value chain into a billion-dollar industry, one that creates jobs, empowers women, and significantly boosts our foreign exchange earnings.”

Key agricultural stakeholders have hailed the presidential directive as a transformative game-changer for the Nigerian economy.

Architect Kabir Ibrahim, National President of the Nigeria Agribusiness Group (NABG) and the All-Farmers Association of Nigeria (AFAN), stated: “This is a pivotal moment for Nigeria’s agricultural industrialization. For decades, we have exported raw shea nuts only to import the finished products at a much higher cost. This policy corrects that imbalance. It is a strategic imperative that will stimulate investment in local processing facilities, create thousands of jobs for our youth and women in rural communities, and significantly increase our national export earnings from a commodity we are blessed with in abundance. We commend His Excellency, President Tinubu, for this bold and visionary action, and we hope that this initiative is extended to other value chains as well.”

Across the West African corridor, value addition for shea nut has been a big topic. “Regional neighbours such as Ghana, Burkina Faso, Mali, and Togo have already imposed restrictions to protect their industries, leaving Nigeria as the outlier and a hotspot for opportunistic and unregulated buying” says the Minister for Agriculture and Food Security, Abubakar Kyari.

Another stakeholder who chose to remain anonymous emphasized the broader regional significance: “The synchronized action across West Africa is a powerful signal to the global market. Nigeria should not just be suppliers of raw materials; the country should be manufacturers and exporters of finished goods. This collective stance by shea-producing nations will give Africa much needed stronger negotiating power and ensure that the wealth generated from its natural resources benefits its people, communities and economies.”

After a very long time, it appears West African nations are taking a united and collective stand to ensure their resources are managed well for the betterment of the region.

Many of the stakeholders who expressed enthusiasm for the ban are hopeful that this is the beginning of a new trend where value addition is domesticated in Africa, thereby reversing the historic trend of exporting raw materials and importing processed goods.

Others, despite commending the administration’s commitment to value addition, have urged the Government to give more clarity as to the implementation and enforcement of the new policy, to prevent smuggling and other risks.

On the other hand, the government has announced that within the next three months, Nigerian shea butter and oil will have prioritized access into the Brazilian market; an opportunity, if well leveraged, that can bring huge gains to the industry.

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Niger State to End Direct Supply of Live Cows, Launch Meat Processing for Southwest Markets

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Governor Mohammed Umaru Bago of Niger State
Governor Mohammed Umaru Bago of Niger State

Governor Mohammed Umaru Bago has unveiled a major reform in Niger State’s livestock trade, announcing plans to halt the direct transportation of live cows and goats to markets in Lagos and Ogun states.

Under the new plan, livestock will be slaughtered and processed at Mokwa before being packaged and delivered as frozen products to the Southwest. According to the governor, this will improve hygiene, reduce waste, and ensure farmers capture more value from the livestock chain.

Speaking at the First Bank 2025 Agric and Export Expo in Lagos, Bago explained that value addition was key to reversing losses from exporting raw commodities. He revealed that Niger State had secured a $100 million offtake agreement with the Saudi Export and Import Bank to supply livestock to the Middle East, stressing that every part of the animal—from tripe to hooves—would now be fully utilized.

The governor also disclosed plans to partner with Lagos on LNG-powered cold-chain trucks for modern meat distribution. He emphasized that the initiative would raise meat quality, generate jobs in processing, and contribute to Nigeria’s economic diversification away from oil.

Bago urged banks to back such ventures, warning that nations that continue exporting raw products risk remaining “perpetually broke.”

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