The House of Representatives has mandated its committee on banking and currency to Investigate disbursements and compliance of all agricultural loans and credit facilities to farmers.
This followed the adoption of a motion by Rep Chike Okafor on the floor of the House on Wednesday in Abuja
Okafor urged that the investigation should commence from from 2009 to date to enhance national food security.
He noted that between 2009 to date, the Federal Government had approved the disbursement of funds to farmers in various schemes to the tune of over N275 billion.
This acvording to him ranges from commercial agricultural Credit Scheme (CACS) to Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
This he said was to help farmers improve agricultural production and guarantee food security in the country.
He stated that apart from increasing food supply, the scheme was 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;
According to him, since the approval, most farmers have not been able to access the loans due to stringent requirements.
He added that the requirements were being demanded by banks from prospective borrowers and the alleged siphoning of over N105 Billion meant for farmers by Management of NIRSAL;
Okafor stated that he was concerned that food production had not attained the expected level despite the approval of over N 275 billion facilities to farmers.
He expressed worries 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 would not be achieved if farmers are unable to access loans meant to increase agricultural production.
