The Federal Government/International Fund for Agricultural Development, FG-IFAD, Value Chain Development Programme, VCDP, in Niger State has called on financial and insurance institutions to introduce flexible loan and insurance packages for farmers under its programme ahead of the farming season.
The State Programme Coordinator VCDP, Hajiya Hadizat Isah, made the call during a meeting with executives of Commodity Alliance Financing, CAF, financial institutions and insurance companies on the uptake of weather-index insurance held in Minna.
She said the meeting was organised to discuss ways of easing access to loans and insurance services for rice and cassava farmers participating in the programme.
According to her, IFAD-VCDP established CAF structures across the nine benefiting local government areas to ensure farmers continue to receive guidance and support even as the programme prepares to wind down operations in Nigeria.
She noted that some farmers had complained about strict loan conditions and urged financial institutions to review policies that make repayment difficult.
Hajiya Isah also called on CAF leaders to sensitise farmers on new insurance products, especially those covering farms and produce in transit.
She further stressed the need for farmers to continually update their knowledge on the programmes and products being introduced by financial and insurance institutions, including equipment financing schemes among others.
CAF State Chairman, Engr. Mohammed Ibrahim Kanko, appealed to financial institutions to relax their policies to enable farmers access loans and insurance more easily amid rising farming costs.
He said many farmers face enormous pressure after obtaining loans due to stringent repayment conditions and rising production costs.
The CAF chairmen for Katcha and Wushishi Local Government Areas, Mohammed Musa Kambari and Ahmed Abdullahi Wasagi, respectively, pledged to brief farmers in their areas on the outcome of the meeting and the new packages introduced by the institutions.
They lamented the rising cost of farm inputs and implements, noting that many farmers now depend on loans to sustain their farming activities as the rainy season approaches.
Also, representatives of the financial and insurance institutions pledged continued support for farmers under the programme even after the exit of IFAD-VCDP from Nigeria.
A representative of the Development Exchange Centre, DEC, Sunday Nenmene, said the organisation would continue doing business with farmers captured under the programme.
“We already have the names of the farmers in our database and will continue to do business with them after the exit of VCDP because their activities have boosted our reach and operations,” he said.