The Central Bank of Nigeria, CBN, has threatened to blacklist Benue farmers over their failure to repay a loan of N301,850,000 million given to them in 2018 by the bank.
The Next Edition reports that members of Rice Farmers Association of Nigeria, RIFAN, who collected the CBN 2018/19 Wet Season Farming loan in Benue State are yet to pay back.
Speaking at a meeting with RIFAN executives and representatives of banks in the state, mediated by the Nigerian Security and Civil Defence Corps, NSCDC, through its Anti Corruption and Transparency Unit, a representative of the CBN, Usman Abraham, noted that records show that Benue farmers are not good with paying back loans.
He stated that the loan given to RIFAN which is to ensure food security in the country and to empower small holder farmers over the years, have succeed in other states; Bauchi, Jigawa, Yobe, Gombe, Kebbi and FCT, among others, and wondered why the Benue farmers could not pay back.
“From the figures available to CBN in terms of repayment of these loans, Benue is termed to be a bad state when it comes to loan repayment and if this trend is not curbed, over time, the CBN will have no other choice than to stop giving such loans to Benue farmers.”
Usman while thanked those beneficiaries who have paid back their loan, commended the NSCDC for its involvement in ensuring that efforts are on to ensure that defaulters pay back the loans.
Earlier, Commandant of NSCDC, Benue State Command, Dr. Philip Okoh warned all RIFAN members in the state to pay back the loan without further delay or face the wrath of the law.
Okoh regretted that out of the N301,850,000 million loan only N5,176,000 has so far been repaid leaving a balance of N296,674,000 yet unpaid.
He disclosed that most of the beneficiaries were not paying back the loan because of the viral misconception that the loan was COVID-19 free loan which is not to be paid back.
Okoh informed them that the failure to pay back the loan will not only threaten food production but will reduce the status of Benue as the food basket of the nation.
READ ALSO: NBC Fines Vision Media N5m, Suspends Programme For 6 Months
Okoh also cautioned council chairmen as well as RIFAN executives at the local government level who have collected repayments but refused to refund to the bank to ensure that the loans are repaid.
The Commandant gave a grace period of end of March for all defaulters to pay back warning that anyone who refuses to pay back would be dealt with accordingly.
State Chairman of RIFAN, Fidelis Akosu who disclosed that the Association secured loan for 2,264 farmers lamented that less than one percent of those who got the loan have paid back.
“When the loan came, people thought it was not a repayable loan and so they collected for their wives and children and now, it is difficult for them to repay the loan,” Akosu said.
Responding on behalf of RIFAN LGA Chairmen, Otukpo, John Adeka, promised to take the message back home and sensitize farmers to ensure that those who took the loans pay back.
