The government of Oyo State, located in southwestern Nigeria, has announced an ambitious initiative to support local farmers with accessible agricultural loans in 2025. This program, designed to boost agricultural productivity and enhance food security, will provide loans with a single-digit interest rate, ensuring affordability for farmers.
Sheik Taofeek Akeugbagold, Chairman of the Agricultural Credit Corporation of Oyo State (ACCOS), confirmed the development in a press release from Ibadan, the state capital. He emphasized that preparations are underway to facilitate the loan disbursement process and reaffirmed the government’s commitment to fostering sustainable food production.
The 2025 loan scheme aligns with the core mandate of ACCOS: to mobilize resources for agricultural financing and ensure farmers’ easy access to affordable credit facilities. However, Akeugbagold expressed concern over the poor repayment rate of the 2024 SAFER loan program, valued at 1 billion naira (approximately $2.2 million USD). He warned that beneficiaries who defaulted in 2024 would be barred from participating in this year’s initiative, with repayments enforced via deductions from guarantors’ salaries if necessary.
Akeugbagold urged defaulters to settle their outstanding debts promptly, highlighting that full compliance would ensure future access to similar programs. The 2025 initiative is a critical step in the state’s broader strategy to bolster agricultural productivity, alleviate poverty, and secure long-term food resilience.
