Oyo Government Decries Low Repayment Of 2024 SAfER Loan

Oyo State government has expressed concern over the low repayment rate of the 2024 Sustainable Action for Economic Recovery (SAfER) loans disbursed to farmers across the state.

Chairman of the Agricultural Credit Corporation of Oyo State (ACCOS), Sheikh Taofeek Akeugbagold, stated this in a meeting held with Participating Financial Institutions (PFIs) in Ibadan, Oyo State capital.

Speaking on the status of the 2024 SAfER loan repayments, the chairman disclosed that the Corporation only received 36 percent of the total loan repayment from the benefiting farmers.

He urged all beneficiaries to fulfill their loan obligations to ensure the sustainability of the programme, noting that the low repayment rate had significantly affected the Corporation’s ability to disburse funds for subsequent phases of the loan scheme.

According to him, “The SAfER loan initiative was designed to empower our farmers and strengthen food production across the state.

“However, the sustainability of this programme depends on prompt repayment by beneficiaries. When farmers refuse to repay, it limits our capacity to assist others who are equally in need of support.”

The ACCOS chairman appealed to all beneficiaries to honour their loan obligations, emphasising that SAfER loan was not a grant but a revolving facility meant to benefit more farmers in Oyo State.

Akeugbagold admonished the financial institutions to intensify efforts in recovering the outstanding loan by engaging guarantors and adopting all necessary measures to ensure compliance with the loan repayment terms.

He reaffirmed the Corporation’s commitment to working hand-in-hand with all stakeholders to strengthen agricultural financing and promote food security across the State.

Responding, Mr. George Martins who spoke on behalf of the financial institutions, explained that the banks have been making concerted efforts to recover the loans.

He, however, attributed the delay in repayment to the decline in agricultural produce prices and the impact of climate change on farmers’ productivity.

Martins assured the Corporation of the financial institutions’ readiness to collaborate closely with ACCOS to ensure full recovery of the outstanding loans while also supporting farmers to remain productive and financially responsible.