The Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) has continued to withhold an approved loan by the Central Bank of Nigeria (CBN) for Hope Concept Investment Cooperative and Credit Union to commence 2018 wet season farming.
Over a month after the CBN released the Anchor Borrower Programme loan to NIRSAL for onward disbursement, the risk management agency has refused to completely release the money, alterating the terms of agreement for collection.
Akin Agboola, the Cooperative president, speaking at a press conference in Lagos on Monday said NIRSAL has upturned the rules of engagement, demanding that its original supplier of implement and off-taker, the Flour Miller’s Association of Nigeria (FMAN) must be replaced with a new one which NIRSAL will introduce.
After sessions of delay, reorganisation of workshops, meetings and verification, Agboola said NIRSAL only initially disbursed N282,100 each to 331 members, and subsequently to 463 members instead of N342, 000 each. About 78 are verified members are left unattended.
This is contrary to the agency’s stance that it would release the credit to applicants who met conditions precedent to access when it reacted to a story earlier published by business a.m. following the discovery that the group of Southwest maize farmer cooperative, which had received CBN credit mandate for payment of a first tranche sum of N246, 523,120, had not been paid many weeks after.
“We have paid 5 percent participation fee. We have done the legal signing and agreement with NIRSAL. So the next thing is to pay our money. Now from the agreement [NIRSAL] does not have the right to nominate any supplier of input, even a buyer for us. It has to be project management team (PMT). What we are expecting is that NIRSAL should release the money to the input supplier (FMN) and for the mechanization so that we can at least participate in this farming season,” Agboola said.