Okowa urges banks to develop healthy credit turnaround time for agric, agribusiness

Banks in Nigeria have been called upon to design healthy policies in agriculture that will address credit turnaround time that will consider the seasonal dynamics of agriculture and agribusiness.

Governor Ifeanyi Okowa of Delta state made the call Wednesday in Asaba at the formal inauguration of the Production and Processing Support Programme (PPSP), one of his administration’s pet initiatives for nurturing entrepreneurs and creating wealth, under the Job and Wealth Creation Scheme of his SMART agenda.

Governor Ifeanyi Okowa

He said the call for banks in the country to design such credit policies in agriculture has become necessary as a measure to deal with the urgent challenge of agricultural financing. “To restore agriculture to its pride of place in the Nigerian economy we must address the issue of financing for the agricultural sector,” he said.

Pointing out that the nation is currently groaning under a national malaise in which states are yet to maximize the potential in agricultural production for economic growth, employment creation, import substitution and sustainable development, the governor identified the causes of the malaise in agricultural production to include the prevalence of subsistence farming, non-prioritization of agriculture and agribusiness at different levels of governance, poor storage facilities and the absence of a sustainable value chain.  “Each of these factors has impacted negatively on the development of agriculture in the country,” Okowa said.

The PPSP is a policy by his administration to turn around the situation by transforming the agricultural sector and stimulate development in all directions. He observed however, that government alone cannot do it, since restoring the glory of agriculture in Nigeria requires that the serious issue of financing of the sector be addressed.

Okowa said: “The PPSP has been conceived to help overcome the problem of resource scarcity, poor technology and infrastructure deficits. However, there is no gainsaying the fact that our financial institutions must rise up to the challenge of agricultural financing if we are serious about economic diversification and self reliance.

“I therefore, call on the banking sector to come up with robust credit policies in agriculture that will address credit turnaround time, the recruitment and training of specialist bankers who understand the dynamics of agriculture and agribusiness, especially the fact that they are time and season bound.”

The governor charged the first set of beneficiaries of the PPSP to reciprocate the good gesture of government by ensuring that they apply themselves diligently to their business. “A lot is expected from you. Always bear in mind that this is not just about you because the fortunes of many other people and small businesses are inextricably tied to your success in business,” he said.