Home Madrid Economy Repayment N5.2b Loan from Anchor Borrower, CBN to Cotton Farmers

Repayment N5.2b Loan from Anchor Borrower, CBN to Cotton Farmers

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the Central Bank of Nigeria (CBN) has called on members of the National Cotton Association of Nigeria, Kano Chapter, which participated in the government’s anchor borrower scheme to repay the loans.

Branch Controller, CBN, Ali Abdulkadir, revealed that the 30,000 cotton producers, who benefited from the loan facility, should not delay in repaying, in order to allow other producers to benefit from the program.

“It is a revolving fund when you collect, produce, sell and then repay the loan so that other people who did not benefit from it before can also benefit from it”, said Ali Abdulkadir.

The comptroller of the CBN subsidiary added that each of the cotton farmers received 174,000 Naira (inputs and cash), with the total loan amount amounting to 5.2 billion Naira.

Refund method: To reimburse the government, each farmer must donate 25 bags of 40 kg, which is equivalent to the amount received as a loan. The recovery process was triggered because cotton is only produced during the rainy season and as such cotton farmers should have harvested what they planted.

“I advise the management of the association to embark on an aggressive follow-up because the loan was granted to the farmers through the association because the association knows them,said Abdulkadir.

[READ MORE: Cotton producers move to recover N4 billion CBN loan]

The CBN also revealed he had extended a similar loan program to rice, wheat, cassava and other staples to improve food production in the country.

Vice Governor of KanoNasiru Yusuf Gawuna represented by a director of administrative and general services of the Ministry of Agriculture, Hajiya Zahra Sulaiman, urged farmers to also pay their loans so that others can benefit from the program.

NACOTAN State Chairman Alhaji Lawan Sarkin Noma commended the apex bank for including cotton farmers in the Anchor Borrower program. He said it would improve the standard of living for farmers and eventually stop the import of cotton.