Reps Seek Easy Access to Short-Term Loans for Cassava Farmers

The House of Representatives has called on the Federal Government and relevant financial institutions to create mechanisms that will guarantee easy access to short-term loans for cassava farmers across the country. The lawmakers said such a move is crucial to boosting food production, promoting agro-industrial growth, and strengthening Nigeria’s economic diversification drive.

The resolution followed a motion of urgent public importance moved by Hon. Abiola Makinde during plenary on Tuesday. He stressed that cassava remains one of Nigeria’s most important staple crops with high industrial value, yet farmers continue to face difficulties accessing affordable financing to expand production.

Makinde explained that cassava cultivation, processing, and value addition have enormous potential to reduce unemployment, enhance export earnings, and ensure food security if adequately supported through financing and modern agricultural inputs.

He said, “Cassava farming has the potential to transform Nigeria’s rural economy and provide sustainable income for millions of smallholder farmers. However, many of these farmers lack access to short-term credit facilities that can help them purchase inputs, hire labour, and manage production efficiently.”

The lawmaker lamented that most rural cassava farmers rely on personal savings or high-interest loans from informal sources, which limit their productivity. He called on the Central Bank of Nigeria (CBN), the Bank of Agriculture (BOA), and other financial agencies to introduce flexible, low-interest short-term loan schemes tailored to the production cycle of cassava.

According to him, “The financial institutions must develop loan products with minimal collateral requirements and realistic repayment timelines that suit the cropping period of cassava. Farmers should not be discouraged by cumbersome procedures or excessive documentation.”

Supporting the motion, Hon. Yusuf Adamu Gagdi noted that cassava is a key raw material for the production of several industrial products, including starch, ethanol, flour, and animal feed. He said strengthening cassava value chains through access to credit would stimulate industrial growth and rural development.

“The cassava sector is capable of generating foreign exchange and reducing Nigeria’s overdependence on imported food and raw materials,” Gagdi added.

Other lawmakers, including Hon. Miriam Onuoha and Hon. Aliyu Betara, also backed the motion, noting that agriculture remains central to President Bola Tinubu’s Renewed Hope Agenda, particularly in tackling food inflation and creating jobs for youths.

They urged the government to prioritise smallholder farmers in its ongoing agricultural intervention programmes and ensure that the process of accessing loans is transparent and farmer-friendly.

The House further resolved to mandate the Committees on Agricultural Production and Services, Rural Development, and Banking and Currency to liaise with the Central Bank of Nigeria, Bank of Agriculture, and NIRSAL Microfinance Bank to design effective credit schemes for cassava farmers.

The lawmakers also called for stronger collaboration with state governments, agricultural cooperatives, and the Cassava Growers Association of Nigeria to identify genuine farmers and ensure that loan facilities reach the intended beneficiaries.

Hon. Makinde emphasised that cassava remains a strategic crop in Nigeria’s agricultural sector, given its adaptability to various soil types and climatic conditions. He noted that with improved financing and extension services, Nigeria could become a global leader in cassava production and processing.

According to data from the Food and Agriculture Organization (FAO), Nigeria is currently the world’s largest producer of cassava, with an annual output of over 60 million metric tonnes, accounting for more than 20% of global production. Despite this, the country still imports several cassava-based products due to inadequate processing facilities and low productivity.

Analysts have long argued that limited access to credit is one of the biggest constraints facing Nigeria’s agricultural sector. Many banks consider smallholder farmers high-risk borrowers, leading to underfunding and poor mechanisation.

An agricultural economist, Dr. Kehinde Olayemi, said targeted short-term loans could help cassava farmers invest in mechanisation, improve yields, and enhance value addition. “If well implemented, such financial support will create jobs, improve rural livelihoods, and support Nigeria’s food security goals,” he noted.

The motion was unanimously adopted by the House, which also urged the Federal Ministry of Agriculture and Food Security to collaborate with private investors to develop cassava industrial clusters across major producing states such as Ogun, Oyo, Benue, Kogi, and Cross River.

With the resolution, the House of Representatives has reaffirmed its commitment to promoting policies that empower local farmers, reduce food imports, and stimulate agribusiness growth across the country.