BoA urges states to issue land titles to famers to access loans

 The Managing Director, Bank of Agriculture (BoA), Prof. Danbala Danju, has appealed to State Governments to issue land titles to farmers to serve as collateral for accessing loans.

Danju said that land titles, if issued would enable the bank to release credit facilities to farmers that would enhance production of both food and cash crops.

``We are asking State Governors to issue farmers with land titles.

``We will collect the certificates and keep with the bank such that if for any reason you try to default in the loan repayment, we can with hold the collateral.

``We believe millions of farmers in Nigeria are sitting on capital.

``If state governors and local government could issue land titles, we think this will go a long way in kick starting the agriculture revolution in Nigeria, `` he said.

He opined that a farmer, who has the land, would not default.

According to him, those farmers who rent land, particularly large scale farmers are much easier to deal with because we know they have value for their lands.

``Our concern, however, is that in some places you have the land title but the value of the land is considered worthless. ``

Danju said there is a well grounded theoretical and empirical argument on the need for people to own lands, which would assist them to access loan facility.

``If you use your family farmland and you know if you default in the facility, that land will be taken away, you will not default.

``And we know our people are very sensitive to the idea of this is our family land,” he said.

Meanwhile, the bank had commenced the collection of Bank Verification Numbers (BVN) of registered farmers to be issued with credit facility for the 2016 season.

The bank had said that it is targeting 300,000 rice farmers in 13 states to ensure sufficiency within the next 18 months.