By Babajide Komolafe

Governor of Central  Bank of Nigeria, CBN, Mr. Godwin Emefiele, has warned banks against charging excessive interest rate on loans sourced from its intervention funds.

The CBN intervention funds are designed to provide cheap loans (single digit) to facilitate real sector activities.

These include the Commercial Agriculture Credit Scheme, Micro Small and Medium Enterprises, MSME, Development fund, the Youth Entrepreneurship Development Programme, YEDP, and Anchor Borrowers Programme, ABP.

Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele

Speaking in Abeokuta, Ogun State, during an interaction between the Presidential Task Force on Agricultural Commodities and Production and young farmers at Owowo Model Farm Estate, yesterday, Emefiele warned Participating Financial Institutions (PFIs) from charging double-digit interest rates on any of the intervention funds.

He assured the young farmers of the CBN’s funding support through their respective PFIs, asking them to report any bank that charged them above 9 percent interest on loans guaranteed by the CBN.

He also assured them that Development Finance Officers from the bank were readily available to assist them on how to access credit from the various intervention funds in order to guarantee employment, create wealth and meet the country’s food needs.

Emefiele therefore urged the young farmers to take advantage of the Bank’s Youth Entrepreneurship Development Programme (YEDP) as well as the Micro, Small and Medium Enterprises Development Fund to create wealth,

Minister of Agriculture and Rural Development, Chief Audu Ogbeh assured the youth of Federal Government’s support in their quest to make legitimate earnings from agriculture.

Ogbeh, who frowned at the spate of importation of goods that can be easily produced in Nigeria, expressed confidence in the ability of the youth to produce agricultural commodities that will earn the country the much-needed foreign exchange.

He also commended the effort of the CBN Governor, who he noted was very concerned about the import bills of the country.