In a significant development, the Oyo State Government officially inked a Memorandum of Understanding (MoU) on Thursday with participating financial institutions to streamline the seamless disbursement of the N1 billion single-digit loan earmarked for farmers.

The announcement was officially endorsed by Prince Dotun Oyelade, Hon. Commissioner of the Ministry of Information and Civic Orientation, Oyo State, in an electronic signature dated January 5, 2024.

This disbursement is a pivotal component of the government’s palliative measures outlined in the Sustainable Action for Economic Recovery (SAfER) initiative.

Addressing stakeholders at the Corporation’s Boardroom, Sheik Taofeeq Akeugbagold, Chairman of the Agricultural Credit Corporation of Oyo State (ACCOS), emphasized the necessity of this move to expedite the loan disbursement process to beneficiaries and accredited farmers.

Akeugbagold highlighted that the Board had identified delays in the disbursement process of the single-digit loan, particularly in the early part of December, following the official flag-off by some participating banks.

Underlining the government’s commitment to easing the hardships faced by farmers, exacerbated by the removal of fuel subsidies nationwide, the Board Chairman urged authorized financial institutions to accelerate the loan disbursement to accredited farmers. He also hinted at the possibility of releasing more funds once the initial N1 billion loan is successfully disbursed.

In a related development, Comrade Ogundiran Emmanuel, the Corporation’s General Manager, disclosed that the government had graciously approved Officers of the Local Government Service and TESCOM Teachers to serve as guarantors for farmers seeking the loan. This decision aims to mitigate problems earlier anticipated by farmers, enhancing accessibility to the financial support.

Emmanuel called upon the participating financial institutions to promptly attend to farmers, assuring the availability of funds.

Responding to these developments, Mr. Hakeem Esho, Zonal Manager of the South West Bank of Agriculture, pledged increased efforts towards the efficient disbursement of the loan. He assured that his organization had commenced the disbursement process and promised to intensify these efforts. Esho also urged other financial institutions to promptly commence disbursement without further delay.

The accredited financial institutions responsible for the single-digit loan disbursement include the Bank of Agriculture in Ibadan, Oyo, and Ìséyìn, Igbo-Ora Microfinance Bank, Onibuore Microfinance Bank, Randalpha Microfinance Bank, Ifedapo Microfinance Bank, and Igboora Microfinance Bank.