World Bank approves $200m agric-credit to Nigeria
The World Bank has approved a $200 million credit facility to further support Nigeria, in its efforts to enhance agricultural productivity of small and medium scale farmers.
In a statement on Friday in Abuja, The Word Bank Country Director, Mr. Rachid Benmessaoud, said the loan was in recognition of agriculture as the key to long-term economic growth and diversification.
He said the credit was being financed from the International Development Association (IDA), the World Bank Group’s grant and low-interest arm.
He said it will be on standard IDA terms, with a maturity of 25 years, including a grace period of five years.
Benmessaoud said the project will tackle the key constraints of the Nigeria agriculture sector, such as low productivity, lack of seed funds for establishing agro-processing plants and lack of access to supportive infrastructure.
The World Bank official said it will also solve the problems of low level technology and limited access to markets.
“The project supports the country policy thrusts on food security, local production, job creation and economic diversification,” Benmessaoud said.
“It also responds to the recurring issues of low productivity, limited farmers’ participation to agribusiness supply chains, and institutional realignment in the agricultural sector.
“The project will help increase agricultural productivity and production, improve processing and marketing, foster job creation, and increase household income and livelihood in participating states.”