Some financial experts on Saturday commended the Central Bank of Nigeria (CBN) over the N75 billion approved for the commencement of Nigerian Incentive-Sharing in Agricultural Lending (NIRSAL) to farmers.
They told the News Agency of Nigeria (NAN) in Lagos in separate interviews that the scheme ``The Nigerian Incentive-based Risk Sharing system for Agriculture” would boost the real sector.
NAN report that CBN on June 6 in Abuja approved N75 billion for the commencement of Nigerian Incentive-based Risk Sharing in Agricultural Lending (NIRSAL) to farmers.
According to them, if the fund is properly managed, it would go a long way to re-engineer the growth of the agricultural sector.
Mr Eddie Osarenkhoe, former president, Finance Houses Association of Nigeria, said that the problem of the sector over the year was worrisome.
He said that it needed stimulating measures from the CBN to tackle the challenges.
Osarenkhoe said that the effective use of the fund would lead to development and bridged the financial agricultural gap as well as reducing bank’s perception of agriculture as highly risky.
He said that the fund would facilitate easy access to loans and agriculture facilities that would enhance performance in the sector.
The former president of the association said that the implementation of the loan would determine the level of it success of the scheme.
``If there is effective and transparency in the disbursement of the loan, obviously the scheme would record a greater success,” he said.
Dr Samuel Nzekwe, the former president, Association of National Accountants of Nigeria (ANAN), said that the scheme would boost food production in the economy.
Nzekwe said: ``the scheme would stimulate the real sector and reduce the importation of rice and other local products within the country.”
He also said the CBN should ensure that the interest rate charged on such scheme was low in order to achieve it objective.
Nzekwe urged the Federal Government to put introduce measures that would stimulate the real sector to future challenges.
Dr Gbenga Adebayo, a lecturer in the Department of Economics, University of Lagos, said that the fund would stimulate real sector activities, which impact positively on the Gross Domestic Product (GDP).
Adebayo also said that it would galvanise economic growth and brings about creation of jobs, which would reduce unemployment in the country.
He said that it would increase the tempo of agriculture activities and enhance utilisation of resources.
``I believe that new thing is beginning to happen in the real sector, which would also assist the CBN to achieve remarkable development in the sector,” he said.
Dr Kazeem Bello, a lecturer in the Department of Economics, University of Ibadan, told NAN in a telephone interview that the scheme would promote economic activities by providing jobs for the people.
Bello said that monitoring and transparency in the disbursement of the fund would help the CBN to achieve its objectives.
``The scheme portends good because it would improve the standard of living and boost national food production if only the right channel get the fund,’’ he said. (NAN)