Many Nigerians are not aware that a lot is going on in the Agricultural Sector. The volume of money going into the sector, both from local and international sources is going to blow your mind! These funds run into trillions of Naira, but only few individuals and companies know the secret of how to access this unimaginable volume of money. Before I go on to reveal the secret of how you can lay your hand on this fund, let me first list some of the funds available for grabs!
a. CBN - N200 billion for Commercial Agricultural Credit Scheme (CACS)
b. CBN - N220 billion for Micro, Small and Medium Enterprises Development Fund (MSMEDF)
c. World Bank - $200 million (about N70 billion) for Commercial Agricultural Development Project (CADP)
d. African Development Bank (AFDB) - $800 million (about N280 billion) for Technology for African Agriculture Transformation (TAAT)
e. African Development Bank (AFDB) - $24 billion (over eight trillion Naira) to support Nigeria's Agric Sector (this money is on its way according to Adesina, the Bank's Boss)
f. Bank of Industry - N5 billion for Cottage Agro Processing (CAP)
g. FCMB - N10 billion for Young Farmers
The above list is not comprehensive, but represents the major Agric funds from local and international financial institutions. There are many others not listed here, but all are disbursed through Commercial and Micro Finance banks.
Initially, I designed this Article for Abuja residents, where I know it is very easy to access and obtain these funds, but a very senior banker told me that the formula can work in any State of Nigeria as long as you know the game.
Before I go on, you must promise that you are not going to use this information I am about to reveal to shortchange the Country. This is because I know many people and Companies that collaborate with some bank official to access these funds through this formula, but diverted the cash to the importation of cars from Auction Export dot com, instead of Agro Investments. One of the guys I know even used his own to finance a contract; but these monies are meant for farming and Agro Industries. To me, this is economic sabotage. Do not use my formula to sabotage Government's efforts to commercialize and optimize the Agro potentials of Nigeria. If you do, you are on your own!
Now, lets go there!
We all know that whenever you ask for loan from any Nigerian Bank, you would be asked to provide collateral, bring your Senator, your great grand father must appear and sign, a General from your community must come to surety you; and all those funny, funny requirements that make it extremely difficult to access loans in Nigeria. The reason is simple: the money is reserved for a few! It is not for all. The political economy of asking you to deposit the skull of the first King of your Town is just to scare you away. The conditionalities of the money is designed and structured to put fear in you, so that the few can run their things! But if you understand the game, you will join the few.
I am bursting this game because these funds are very huge. It can serve a greater percentage of the society. It can reduce poverty and unemployment if judiciously employed. It kept coming; and it will continue to come because the Federal Government of Nigeria has shifted its Policy to the development of the Agricultural Sector.
So, back to the game. You must understand two things:
i. adequacy of collateral is the number one consideration for giving you any loan in Nigeria. Forget all those other stories of viability of your plan and other such empty talks.
ii. collateral is their most potent tool used to scare you away.
Now, how do people access these huge Agric loans?
As a Real Estate Consultant, with special interest in the Abuja Farmland Property sub-sector, I observed that majority of my clients who want me to help them acquire large hectares of farmlands in Abuja are directed from the banks. Secondly, these bank-directed clients usually require cheap farmlands not minding the locations. Whenever I observed that, ''this one is very cheap, but you cannot develop it now'', they will simply answer, ''don't worry, we know what we are doing''. Immediately after purchase, they will quickly do the whole documentation process, including change of ownership to their names or Company names.
It was after I observed this pattern for a while that I started asking questions. I was then educated that the easiest way to access loan in Nigeria today is through Agric loans. And that the shortest way to access these Agric loans is to have Agricultural Farmland title document in your name, no matter where it is located in the FCT. In other words, these peanut farmland documents are used to process tens and hundreds of millions of Naira worth of Agric loans. Five hectares (50 plots) bought for N2m can be valued for N50m; and the title documents can be used to access N25m Agric loan very fast. Two hectares (20 plots) worth N1m can be valued at N30m, and used to access N15M Agric loan. 50 hectares (500 plots) worth N30m can be valued at N500m, and used to collect N300m loan. A one hectare (10 plots) of Kwali Farmland bought for 500k was used to access N10m Agric loan. And so on! Abuja Farmlands are generally very cheap, so these smart guys capitalized on it to have access to so much money at a not more than 9% interest rate p.a; and they still keep these large hectares of farmlands which continue to appreciate.
SEE ALSO: LIST OF ABUJA FARMLANDS FOR SALE
My annoyance is that Farmers and Agro investors are not the one collecting these huge funds. Many of them do not know the shortcut to this cool cash. Majority of the people in the game are importers and contractors. That is why government is not seeing impressive results compared to the volume of money being pumped into the Agric Sector.
So, if you want to cut your own piece of this huge elephant, simply go and acquire a cheap Farmland, no matter the location. Process the title documents in your name or company name, and you are good to go! Do not buy from local chiefs. Buy only farmlands that have government title documents. Armed with this document, approach your bank for an Agric loan, and you will see a magic! They will quickly process and approve the loan because, to them, if you can acquire two hectares, 10 hectares, 100 hectares of Agricultural Land, then you must be really ready for serious farming business. In any case, if you default, they can simply hold on to your title documents. To them, the loan is a highly secured one. Don't forget that they make money from CBN by giving you this loan. CBN gives the banks this money at 2%, and asked them to give you at not more than 9% interest rate p. a
FOR MORE INFORMATION, AND FOR CHEAP AGRICULTURAL FARMLANDS IN ABUJA AND NASARAWA, CHECK ME UP HERE
COMMENT, SHARE AND ADD YOUR OWN SECRET ON HOW WE CAN GRAB THIS CASH!
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