Competitive African Rice Initiative (CARI), says it will seek a Memorandum of Understanding (MOU) with commercial banks in Nigeria to work out loans for rice farmers to improve production.
Dr Lisa Wegner, the Advisor, Agricultural Finance of CARI said made this known on Monday in Abuja.
She said that CARI was discussing the challenges of rice farmers and processors with commercial banks in accessing loans to boost production.
She said that the bank and Nigerian Incentive-Based Risk-Sharing System for Agricultural Lending (NIRSAL) were also in discussions on ways to get more loans for the farmers.
According to her, the banks have agreed to sign an MOU with CARI, if only NIRSAL will guarantee the farmers.
Wegner said that rice remained a promising sector and CARI had done something really substantial in achieving good results, adding that the banks would also engage closely with the initiative.
“CARI has trained farmers and has developed business modules with our rice millers.
“To provide ease loans to potential clients and three banks have already signified intention to sign an MOU with CARI.
“Then we at CARI will continue discussion with NIRSAL so that they can support the banks that are willing to work with CARI to provide loans for farmers in Nigeria,” she said.
She said that with the backing of NIRSAL to support commercial banks willing to work with CARI, there would be a tripartite or bilateral agreement that would favour the farmers.
Wegner said that Nigerian rice was a good sector to invest in, adding that it remained a promising sector for the young generation to embrace.
According to her, Nigerian farmers need a new innovation of rice farming and more technical equipment.
“This has to be in place to catch the attention of the young people in the farming business.’’
