Credit is a critical factor in development of agriculture, the rural areas, and small business in general. This is because it drives capital formation and technology upgrade.
Bank of Agriculture activity in this area involves the direct making of loans and strengthening of local micro finance banks, which deliver credit at the local community level.
We have embarked of various initiatives to strengthen the cooperative credit structure at local and state government level as well as rural micro finance banks. The effect is that adequate and timely credit is made available to the needy. In order to reinforce the credit functions and to make credit more productive, Bank of Agriculture will begin the implementation of a number of developmental and promotional activities such as:-
• Work with cooperative groups at the states and local government level to prepare development action plans for themselves
• Enter into collaborative or on-lending MoU with state governments and cooperative associations and microfinance banks specifying their respective obligations to improve the affairs of the groups and banks within a stipulated timeframe
• Monitor implementation of development action plans of cooperative associations and micro finance banks and fulfilment of obligations under MoUs
• Provide financial assistance to cooperatives and micro finance banks for establishment of technical, monitoring and evaluations cells
• Provide organisation development intervention (ODI) through reputable training institutes like Federal cooperative colleges, Universities of Agriculture, and departments of agriculture of various universities in Nigeria.
• Provide financial support for Federal Cooperative colleges and departments of cooperative studies in various universities and polytechnics
• Provide training for senior and middle level executives of local commercial bank branches, micro finance banks and cooperative associations
• Create awareness among the borrowers on ethics of repayment through local debt collectors and cooperative marshals that enforce timely repayment and prompt remittance of same to the lending institution
• Provide financial assistance to microfinance banks for building improved management information system, computerisation of operations and development of human resources