Farmers find solace in CBN’s interest rate cut
To revive the Nigerian economy which has been battered by the COVID -19 outbreak and low oil price, the Central Bank of Nigeria (CBN) in its May Monetary Policy Committee (MPC) meeting slashed the country’s benchmark interest rate by 100 basis points to 12.5percent from 13.5percent, first easing since March 2019 and the largest since 2015.
The measure by the apex bank is to spur lending to the economy which faces imminent recession.
Farmers in the country have lauded the move of the apex bank on the recent interest rate cut, saying it is the right step as it will help businesses survive the difficult moment of the virus outbreak and low oil price.
They added that it will also spur lending to the agricultural sector as agribusinesses can now access loans at a cheaper rate with a longer moratorium period.
“The move by the CBN is a good one for the economy as it will stimulate borrowings for investments,” said AfricanFarmer Mogaji, head-agribusiness group, Lagos Chamber of Commerce and Industry.
“With this and the previous reduction of interest rate on intervention funds as well as the N50billion credit facility and extended moratorium by the apex bank, farmers and other actors in the sector will be able to access cheap credits,” Mogaji said.
He stated that the recent policies by the apex bank will stimulate economic growth as a cut in the benchmark lending rate reduces banks’ lending rates to borrowers.
The monetary policy rate (MPR) is the benchmark interest rate that is used to determine banks’ lending rates and the cost of credit for borrowers, he says.
The agricultural sector recorded a 2.2percent growth rate in the first quarter of 2020, contributing N3.7trillion to the country’s gross domestic product for the period.
The sector’s overall contribution to the country’s GDP in real terms for the period stood at 21.9percent in the first quarter of 2020, slightly higher than its contribution in the first quarters of 2019 and 2018 respectively.
Experts say that agricultural contribution to the GDP can be further boosted with the measures undertaking by CBN to support businesses, noting that the extension on loan moratorium and reduction of interest rate on intervention funds will further boost farmers’ output.
Prince Olabode Adetoyi, chief executive officer of Hi-Nutrient Limited gave kudos to the apex bank for its recent interest rate cut and extension on loan moratorium among others.
Adetoyi says it will help farmers especially in the poultry subsector who have been negatively impacted by the COVID-19 pandemic recover from the economic fallout of the virus.
He stated that if the lower interest rate is combined with our measures by the government, farmers’ productivity will be boosted, leading to the sector contributing more to the country’s economic growth amid and post COVID-19.
“We give kudos to the government for coming up with various measures to support businesses, especially on the benchmark interest rate cut and extension of loan moratorium, this will ensure businesses survive amid the pandemic,” Adeoti who is also the vice president of the Nigerian poultry association said.
He called on the apex bank to ensure that money deposit banks reduce their lending rate as the benchmark rate has been reduced.
He noted that banks are quick to increase interest rates anytime the benchmark rate is increased but will fail to reduce it when there is a cut.
He added that much more is still needed to be done to support farmers and ensure that the sector creates jobs and diversify the economy away from oil.
Businessday
Recent Comments
- ankara nakliye tavsiye on 20 Essential Business Resources You will find Useful
- karapürçek nakliyat on 20 Essential Business Resources You will find Useful
- taşımacılık ankara on 20 Essential Business Resources You will find Useful
- çayyolu evden eve on 20 Essential Business Resources You will find Useful
- evden eve nakliyat on 20 Essential Business Resources You will find Useful
- keçiören nakliyat firmaları on 20 Essential Business Resources You will find Useful
- asansörlü nakliyat ankara on 20 Essential Business Resources You will find Useful
- nakliye firmalari on 20 Essential Business Resources You will find Useful
- ankara evden eve nakliye firmaları on 20 Essential Business Resources You will find Useful
- ankara asansörlü evden eve nakliyat on 20 Essential Business Resources You will find Useful
- Language learning platform on 5G Test trials conducted using 4G technology
- Öveçler Evden Eve Nakliyat on 20 Essential Business Resources You will find Useful
- Villa Taşıma on 20 Essential Business Resources You will find Useful
- nakliye ücreti on 20 Essential Business Resources You will find Useful
- full apk indir on 20 Essential Business Resources You will find Useful
- asansör bakım on 20 Essential Business Resources You will find Useful
- Kalecik Evden Eve Nakliyat on 20 Essential Business Resources You will find Useful
- Turkish citizenship by establishing a company on 20 Essential Business Resources You will find Useful
- aacomicoox on Operations will continue at seaports, says NPA
- oehigilapoifi on Operations will continue at seaports, says NPA
- afeasoliitunu on Operations will continue at seaports, says NPA
- daqooyevacx on Operations will continue at seaports, says NPA
- osupuaifakoq on Operations will continue at seaports, says NPA
- ogirusoda on Operations will continue at seaports, says NPA
- etowuataeiwea on Operations will continue at seaports, says NPA
- enepahipoqaki on Operations will continue at seaports, says NPA
- Deshawn Bishop on 20 Essential Business Resources You will find Useful
- YASEMİN on 20 Essential Business Resources You will find Useful
- SEDA ELÇİM on 20 Essential Business Resources You will find Useful
- ALİ on 20 Essential Business Resources You will find Useful
- ProfitBotz on Will you allow your partner to sleep with their boss so they can keep their job
- Tente on 6 Ways To Reduce Attrition Rate and Increase Employee Retention Rate
- ozpolatnakliyat on 20 Essential Business Resources You will find Useful
- Ankara Nakliyat Fiyatları on 20 Essential Business Resources You will find Useful
- ankara nakliyat özpolat on 20 Essential Business Resources You will find Useful
- RobertBum on How to Start An Online Baby’s Boutique in 2021
- bahis oyna on Top 10 Smartphones in Nigeria 2020
- Howard Burke on 20 Essential Business Resources You will find Useful
- Camryn Burton on 20 Essential Business Resources You will find Useful
- smmpanel on 20 Essential Business Resources You will find Useful
- Jade Gallagher on 20 Essential Business Resources You will find Useful
- Cherish Velez on 20 Essential Business Resources You will find Useful
- Marianna Vasquez on 20 Essential Business Resources You will find Useful
- Harold Moses on 20 Essential Business Resources You will find Useful
- Lucille Hanson on 20 Essential Business Resources You will find Useful
- Patrick Roach on 20 Essential Business Resources You will find Useful
- Lilly Watts on 20 Essential Business Resources You will find Useful
- Marcus Hensley on 20 Essential Business Resources You will find Useful
- Aliyah Cline on 20 Essential Business Resources You will find Useful
- Tristen Mcknight on 20 Essential Business Resources You will find Useful
- Marianna Vasquez on 20 Essential Business Resources You will find Useful
- Awiebjcox on How to Start An Online Baby’s Boutique in 2021
- Abigayle Wolfe on 20 Essential Business Resources You will find Useful
- Jovan Zuniga on 20 Essential Business Resources You will find Useful
- Simon Bender on 20 Essential Business Resources You will find Useful
- Mobil ödeme bozdurma on 20 Essential Business Resources You will find Useful
- JosephTox on How to Start An Online Baby’s Boutique in 2021
- Tüp mide ameliyatı on 20 Essential Business Resources You will find Useful
- SÜREYYA BURCU on 20 Essential Business Resources You will find Useful
- smmpanel on 20 Essential Business Resources You will find Useful
- dalyan transfers on 20 Essential Business Resources You will find Useful
- Ereğli Haber on 20 Essential Business Resources You will find Useful
- en iyi fansublar on 20 Essential Business Resources You will find Useful
- SEYFULLAH on 20 Essential Business Resources You will find Useful
- ÖZLEM on 20 Essential Business Resources You will find Useful
- GÜLSÜM on 20 Essential Business Resources You will find Useful
- bulut sunucu on 20 Essential Business Resources You will find Useful
- FATMA on 20 Essential Business Resources You will find Useful
- Jasper Roach on 20 Essential Business Resources You will find Useful
- KENAN SELÇUK on 20 Essential Business Resources You will find Useful
- Frances Kramer on 20 Essential Business Resources You will find Useful
- Avrupa Su Tesisatçısı on 20 Essential Business Resources You will find Useful
- ddos korumalı ts3 kirala on 20 Essential Business Resources You will find Useful
- RABİA on 20 Essential Business Resources You will find Useful
- EMİR MURAT on 20 Essential Business Resources You will find Useful
- JosephTox on How to Start An Online Baby’s Boutique in 2021
- Denise Diaz on 20 Essential Business Resources You will find Useful
- zlvpkdgklr on Top 20 Fastest Selling Products in Nigeria 2021
- Anderson Horn on 20 Essential Business Resources You will find Useful
- Butik on 20 Essential Business Resources You will find Useful
- takipçi satın al on 20 Essential Business Resources You will find Useful
- İnstagram beğeni al on 20 Essential Business Resources You will find Useful
- Cristal Cline on 20 Essential Business Resources You will find Useful
- FelipeSmums on How to Start An Online Baby’s Boutique in 2021
- Awiebjcox on How to Start An Online Baby’s Boutique in 2021
- Sdvillbefly on How to Start An Online Baby’s Boutique in 2021
- Sdvillbefly on How to Start An Online Baby’s Boutique in 2021
- ariellaseiras022 on Benefits of Website Advertisement.
- ariellaseiras022 on Benefits of Website Advertisement.
- Crypto on Will you allow your partner to sleep with their boss so they can keep their job
- FelipeSmums on How to Start An Online Baby’s Boutique in 2021
- Awiebjcox on How to Start An Online Baby’s Boutique in 2021
- Social Media Marketing Strategy. | Delon on Delivering Superior Customer service.
- Delivering Superior Customer service. | Delon on Selling Products Online Successfully
- How to Grow Your Small Business. | Delon on Common Challenges Small Businesses Face in Nigeria
- 10 Profitable Businesses with little or no Capital in Nigeria | Delon on Where to sell my products online
- Few Tips to Make Money with Photography. | Delon on Selling Products Online Successfully
- Pricing Strategy and its Importance to Business | Delon on Writing your Business Plan: A Step by Step Guide
- SELLING PRODUCTS ONLINE SUCCESSFULLY | Delon on Writing your Business Plan: A Step by Step Guide
- SELLING PRODUCTS ONLINE SUCCESSFULLY | Delon on Lucrative businesses you can start with little or no capital in Nigeria