BoI Supports Farmers in Plateau, Benue, Nassarawa with N580m‎

Adedayo Akinwale in Abuja

‎The Bank of Industry (BoI) has provided the sum of N580 million credit facility to farmers in Benue, Plateau and Nassarawa States through Oxfam’s Village Saving and Loan Associations (VSLA) scheme‎.

Oxfam Nigeria Media and Communication Officer Kunle Olawoyin disclosed this in a statement issued Thursday in Abuja.
He said ‎BoI approached Oxfam sometime ago on how to support the scheme financially.

However, the meeting between both parties culminated in the signing of a Memorandum of Understanding (MoU) to provide the facility to farmers in the selected states.
‎According to the MoU signed by both parties and a copy made available to THISDAY, BoI stated: “We are pleased to advise that the BOI Limited ‎ has approved a short term facility for qualified members of Oxfam’s VSLA under the Government Enterprise and Empowerment (GEEP) scheme.

“The purpose is to disburse ‎GEEP MarketMoni to qualified members of VSLA in Benue, Plateau and Nassarawa State‎. Qualified members will be able to access loan amounts to N50,000. For six months and payeable monthly.”

It noted that GEEP would disburse N580 million among 762 VSLA members in three tranches, and a sum of N194 million would be disbursed in each tranche.

BOI added that each VSLA would be credited up to the tune of N250,000 per tranche and up to a cumulative maximum of N750,000‎.
‎Olawoyin explained that Oxfam VSLA has self-selected 15 to 25 individuals who meet regularly — usually weekly or fortnightly, to save and, if desired, borrow for short periods, paying monthly interest at a rate set by the group. After approximately 12 months, all savings and earnings are distributed back to group members.

He said the earnings are usually distributed in proportion to their savings. VSLA are self-managed community-based groups that provide their members access to basic financial services.
The scheme, according to him, also‎ responds directly to the unmet financial service needs of the remote and rural poor by providing: a secure place to save; the opportunity to borrow in small amounts and on flexible terms; and affordable basic social insurance services.

Olawoyin stressed that the scheme is also aimed at increasing household financial assets and to decreasing household vulnerability to financial and other shocks and stresses.
Oxfam is working with her partners to implement the VSLA initiative in 25 local government areas of five states of Benue, Nasarawa, Plateau, Kebbi and Adamawa.

“So far, more than 1000 groups have been formed comprising of more than 22,925 and steadily growing. The project aims to reach at least 160,000 individuals (6500 groups) direct beneficiaries and 1,600,000 indirect beneficiaries by 2020.

“As a result of the savings they have been able to make, the farmers, who constitute the VSLA members, are now able to access improved farming inputs directly from the suppliers. Cumulatively, the associations have a total equity of about N201 million as of today and this figure is increasing daily,” Olawoyin said.