Oceanic Bank provides loans to cooperative societies

Gbola Subair, Abuja

Ships berthing at Apapa Wharf, Lagos Oceanic Bank Plc has extended credit facilities to farmers and cooperative societies in the northern part of the country.

The bank’s latest move is in a bid to boost productivity and reduce poverty among this group of people in the country and it is in conjunction with Admiral Environment Care Limited and the northern state governments .

Speaking on Tuesday at the launch of Oceanic-Admiral Sustainable Agro-business Development project, Managing Director and Chief Executive of Oceanic Bank Plc, Dr. Cecilia Ibru, identified factors hampering the growth of agriculture in Nigeria, saying that the bank would provide Pick-Up vans, credit facilities and finance centres towards boosting agriculture.

Ibru listed such hindrances to agriculture which included dispersed population, poor transportation and communication facilities (which make unit cost very high) and absence of physical collateral normally required by the banking system.
She said the absence of collateral facility had contributed to the stunting of commercial financial delivery to the sector which provides employment to between 70 and 80 per cent of the population.

Dr Ibru said the bank would collaborate with Admiral Environment Care Limited and the Northern state governments to provide financing for state co-operative societies and farmers in the north with the aim of improving production and farmers livelihood.

“Oceanic Bank is happy to be part of the growing number of financial institutions committed to helping Nigeria and indeed Africa establish a firm foundation for the three pillars of agriculture, including availability of finance, adequate infrastructure and appropriate legislation/regulation that promote agriculture,” she said.

The involvement of Oceanic Bank, she said, would be anchored on tripartite agreement, with Pick-Up vans Lease Scheme, Buhu Guarantee Scheme and Financing Construction of Agric Support Centres.

The pick-up vans, according to the Mrs. Ibru, would provide farmers with a means of transporting their products to the market and as well as bring necessary items to the farms while the lease finance facility would provide farmers in the catchment states including co-operatives to purchase brand new pick-up vans to be supplied by Admiral for agricultural operations.

As for Buhu Guarantee Scheme, she said that bank under the scheme would offer credit facility to support co-operative societies to finance purchase of produce/grains from farmers/co-operatives.