Adamawa makes history as gov Fintiri unveils N5.15b credit guarantee scheme
The agricultural sector in Adamawa State is poised to receive tremendous lift as governor Ahmadu Umaru Fintiri unveils N5.15bn Agribusiness Credit Guarantee Scheme to stimulate rapid development of the sector.
The business savvy move by the state government is a deliberate strategy to take advantage of the state’s comparative advantages in the sector to boost family incomes and shore up IGR by ensuring that off takers get the enabling environment and credit facilities to usher their businesses to the next level.
In the crop sub sector offtakers across paddy rice, soya beans, maize, cotton and sesame are going to be covered by the scheme; in the livestock subsector, offtakers in cattle, pig, goat, sheep and poultry will be covered while the offtakers in fish production will be covered in the aquaculture subsector.
The scheme, a component of Adamawa Agribusiness Support (ADAS) Programme, would improve access to loan for beneficiaries and overcome problem of collateral when accessing credit from financial institutions.
Speaking at the event held in the Government House Yola, Governor Umaru Fintiri said the loan letters issued to the beneficiaries are to provide them security to access credit in their respective banks.
“The Letters given are not meant to provide free loans to the beneficiaries but a business undertaking that provides security to their respective banks to enable them access credit.
Governor Fintiri added that the scheme will be implemented in phases, commencing with aggregators and markers, adding that it will be gradually expanded to cover primary agricultural production among others.
While acknowledging the benefits of the programme to the development of the State, Governor Fintiri saluted the ADAS key players for their commitment and trust and urged them to sustain the spirit.
He called for understanding of the state residents especially at the time of high cost of food items, stressing that his administration will continue to prioritize the welfare of the citizens.
“We will continue to prioritize the welfare of people. We’ll continue to provide palliatives and I tasked those saddled with the mandate of the distribution to do just in the exercise,” he said.
The Secretary to the State Government, SSG Barrister Auwal Tukur says the state Internally Generated Revenue (IGR) has experienced a positive leap since the commencement of the ADAS.
He added that between September 2022 and August 2023, the programme has generated over one billion naira from Agribusiness collections in the state, saying much is expected from the program.
The Principal Consultant of the ADAS Programme, Mr Aminu Buhari disclosed that the credit guarantee scheme would improve Agribusiness and generates more revenue to the state.
He noted that so far the impact of the program is being felt by all the stakeholders through increased revenue, rehabilitation of 12 cattle and grains markets, ease of doing business, job openings for over 2,000 residents as well as regularizing the market environment.
Buhari added that the scheme would provide liquidity and service needs of producers, aggregators and processors that would propel them to upgrade their production capacities and also mitigate all risks factors for all the stakeholders.
He added that Adamawa State has made history for being one of the few states of the federation to take advantage of its comparative advantage in agricultural sub-sector to shore up its revenue base by obtaining a N25bn bond from the capital market.
The consultant said such will reduce the financial pressures and free resources for the government to carry out critical infrastructural projects in the state.
The Chairman, Board of Directors of ADAS Limited, Alhaji Kashim Njidda, commended Governor Ahmadu Umaru Fintiri for bringing the promising agribusiness programme in the state.
In his vote of thanks on behalf of the beneficiaries, the Secretary of Grains Marketers Association, Malam Dauda Mohammad said the credit guarantee scheme will no doubt boost their businesses.
Highlight of the event was presentation of loan letters to some of the beneficiaries that include Emanuel Murna from Mubi Grains Market and Bamanga Sabiu from Ngurore Cattle Market among others.