FG charges new BoA management to recover all debts in 90 days

… to takeover CBN’s Anchor Borrowers Scheme

By Gabriel Ewepu

ABUJA- THE Federal Government yesterday, charged the new management of Bank of Industry to recover all debts from farmers who have not paid their loan.

This charge was given by the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, while inaugurating the new management of the bank, which Mohammed Kabiru serves as the Managing Director and Chief Executive Officer.

Ogbeh also raised concern over the high interest rate in the banks that have made farmers no to be able to access finance, and asked the new management of BoA to look into this and make funds available to farmers.

He said: “You that constitute the new management of the bank have to recognise that we are going to need you to deploy everything according to your capacity in your assignment successful.

“You have some debts to recover, and I do not know how much is owed your bank, try and get the money back. You may feel free to inform farmers who owe you that in the next 90 days you expect them of thinking of paying back.

“They are making some money now there is no reason why they should not pay and those who borrowed money from you know that this is not another federal government’s largesse. I don’t want the bank to die.

“So feel free to take adverts, do all the publicity you informing your creditors that they have to pay and do that as quickly as possible. Those who fail after the period of warning we are giving we will like to advise that there ways of forcing them to do so. People who borrow must pay because we are talking of shareholders’ fund.

“We urge to see yourself as agents of growth, the demands will come, we will try and retool your bank, train your staff in all the branches because they have become slack and lazy, retrain, reenergise them to do their job and is going to be the test of your capacity. We pronounce you installed in office.”

Meanwhile, the Minister disclosed that the BoA will take over the Central Bank of Nigeria, CBN, Anchor Borrowers Scheme, since farmers are to acess loans directly from BoA, and stated that the bank’s management should fashion out ways that will help farmers sustain their credit needs.

“When we came in we had the partnership with the Central Bank of Nigeria, CBN, which came up with the Anchor Borrowers Programme, through farmers got credit at nine percent. The average loan to farmers was about N220, 000 and the farmers put the money to good use.

“Many of them have become quiet wealthy in some states and this they said has never been so with them in the history of this country. That programme has been wonderful but you have to take it over because the CBN’s primary responsibility is not giving direct credit to farmers but yours is. So you have to start working it out”, he said. 

Kabiru promised that the new management will perform beyond the expectations of the Minister, and also support the Ministry’s transformation agenda after they have carefully studied and analysed all the Minister has given as objective, which their working plan will be submitted to the Minister by next week and then take off.

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