36% of farmers’ loan beneficiaries repaid as Oyo govt frowns at 2024 low repayment
The Oyo State Government has expressed worry over the low repayment rate of the 2024 Sustainable Action for Economic Recovery (SAfER) loans disbursed to farmers across the state.
Taofik Akeugberu, the chairman of the Agricultural Credit Corporation of Oyo State (ACCOS), stated this in a meeting with Participating Financial Institutions (PFIs) held at the Corporation’s Board Room, Ibadan.
Speaking on the status of the 2024 SAFER loan repayments, the Chairman disclosed that the Corporation only received 36 per cent of the total loan repayment from the benefiting farmers.
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He urged all beneficiaries to fulfil their loan obligations to ensure the sustainability of the programme, noting that the low repayment rate had significantly affected the corporation’s ability to disburse funds for subsequent phases of the loan scheme.
According to him, “The SAfER loan initiative was designed to empower our farmers and strengthen food production across the state. However, the sustainability of this programme depends on prompt repayment by beneficiaries. When farmers refuse to repay, it limits our capacity to assist others who are equally in need of support.”
The ACCOS chairman appealed to all beneficiaries to honour their loan obligations, emphasising that the SAfER loan was not a grant but a revolving facility meant to benefit more farmers in Oyo State.
He admonished the financial institutions to intensify efforts in recovering the outstanding loan by engaging guarantors and adopting all necessary measures to ensure compliance with the loan repayment terms.
He reaffirmed the corporation’s commitment to working hand in hand with all stakeholders to strengthen agricultural financing and promote food security across Oyo State.
George Martins of Randalpha Microfinance Bank, in his response, who spoke on behalf of the financial institutions, explained that the banks have been making concerted efforts to recover the loans.
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He, however, attributed the delay in repayment to the decline in agricultural produce prices and the impact of climate change on farmers’ productivity.
Martins assured the corporation of the financial institutions’ readiness to collaborate closely with ACCOS to ensure full recovery of the outstanding loans while also supporting farmers to remain productive and financially responsible.
Participating financial institutions under the SAfER loan scheme include the Bank of Agriculture (BoA), SEAP Microfinance Bank, Osanta Microfinance Bank, OnibuOre Microfinance Bank, Multivest Microfinance Bank, Igbo-Ora Microfinance Bank, Ifedapo Microfinance Bank, and Randalpha Microfinance Bank
