N106.39 Billion Disbursed By CBN To Rice Farmers

A total of N 106.39 billion has been disbursed to rice farmers under the Paddy Aggregation Scheme by the Central Bank of Nigeria (CBN).

The CBN Governor, Godwin Emefiele, disclosed this in statements from the Monetary Policy Committee.

He said, “Under the Paddy Aggregation Scheme, N6.2 billion was disbursed by the Bank to three new projects for the purchase and mopping-up of home-grown rice paddy.

“This brings the total funds disbursed to 42 integrated rice millers under the PAS to N106.39 billion.”

The purpose of the PAS  is to enable Integrated Rice Millers and Large Scale Aggregators to purchase home-grown rice paddy at a single-digit interest rate to promote the Federal Government of Nigeria’s National Food Security Programme towards effecting lower prices and enhancing national food security.

The features include: single-digit interest rate at five per cent; bullet loan repayment after 12 months for loans that have 12 months tenor; no obligor limit applicable; applicant must have a functional silo; and it has 24 months loan tenor.

The CBN Governor had earlier urged rice mills in the country to embrace the bank’s backward integration initiative aimed at conserving foreign exchange reserves, revamping local production capacity and creating employment.

He had also urged Garewa Rice Mill in Kano, to get involved in paddy production to guarantee a sustainable supply of paddy to their mills and also complement the supply from the smallholder farmers through the CBN’s partnership with the Rice Farmers Association and prime anchors.