The Coming Of Credit Scheme
For Farmers & Agripreneurs
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By Anietie Usen
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♦️For agriculture to succeed in Akwa Ibom State at a commercial and export level the way Pastor Umo Eno plans it, there is need for more than a fertile land. His agenda for breakthrough in this vital sector banks on a well managed and efficient agricultural credit programme as the game changer.
♦️Just as credit, loans and grants are required in many types of small and large scale businesses, agriculture is not an exception. The need for agricultural credit becomes even more important when a community such as Akwa Ibom State desires to move from traditional agriculture to modern, commercial and export oriented agriculture. In page 12 of ARISE AGENDA, Umo Eno states specifically that he will “promote access to Agricultural Credit Facilities through Ibom Fadama Microfinance Bank and other agricultural credit banks”.
♦️As a businessman who had over the years relied on credit facilities to grow his hospitality and other businesses, he is very skilled in managing credits and loans. For those who read my post yesterday, you will recall that I made mention of Ibom Fadama Microfinance Bank and the pioneering role Pastor Eno played in establishing the Bank for Akwa Ibom State, where he also served a the first Board Chairman.This is one of the credit platforms that will be used to finance agriculture in Akwa Ibom State.
♦️Every country that is serious about agriculture depends on similar credit schemes. India for example has a long history of helping rural farmers with agricultural credits of various types. Such credits are generally repaid after harvest and are called short term credit. Farmers are taught how to utilize the credit and how to repay and protect it in order to get more credits to grow their farming business.
♦️There is also the issue of buying off the crops from rural farmers. This is known as off-taking. Once a farmer is certain that his or her harvests will be bought off immediately by government or other agencies, the incentive to make good use of the credit increases. Off-taking goes hand in hand with storage, processing, packaging and marketing, which Pastor Umo Eno talked about a lot during the campaigns. He also talks very often about organizational structures, including produce and marketing boards that would channel agricultural product to needed markets locally and beyond.
♦️The strategy as stated in the ARISE AGENDA is to target and encourage women and youths into agribusinesses by the providing technical support, extension services, farming inputs and training. That means job creation. This economic blueprint by Umo Eno also targets the establishment of a research-based College of Agriculture.
♦️One of the things Malaysia did to rank among the topmost oil palm countries in the world was to establish a research university that focused on Oil palm and related products. Known as Universiti Putra Malaysia (UPM), it started as a School of Agriculture and has today helped Malaysia to be the producer and supplier of one-third of the world's palm oil.
♦️To complete in this sector and make quick impact, ARISE agricultural sector also sees Akwa Ibom State partnering with relevant multilateral agencies, NGOs and funding agencies. To attract funding agencies, Pastor Eno keep insisting the State must first keep its house in order in terms of transparency, accountability and best practices in corporate governance.
♦️With the serious-minded and firm leadership that Pastor Umo Eno is bringing to bear in his Administration, coupled with adequate political will to blaze the trail and break the jinx in agribusiness, Akwa Ibom might well witness the rise of its golden era.
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