LAPO expresses displeasure over farmers’ loan repayment

LAPO Micro-Finance Bank has expressed its dissatisfaction with the poor repayment of loans by some farmers in Benue State. The bank’s Loan Recovery Officer, Susan Adoga, said this at a stakeholders’ meeting organised by the International Fund for Agricultural Development (IFAD) in Makurdi on Monday.

Adoga said that many farmers who borrowed money from the bank failed to remit their weekly installments as agreed, thereby affecting the bank’s liquidity and profitability. She said that the bank was reluctant to lend more money to farmers who did not honour their obligations, as this would expose the bank to more risks.

She appealed to the farmers to be more responsible and consistent in repaying their loans, as this would enable them to access higher amounts and improve their productivity. She also advised them to use their loans for the intended purposes and not divert them to other ventures.

She said that the bank was partnering with IFAD to provide affordable and accessible loans to farmers under the Value Chain Development Programme (VCDP), which aims to enhance the income and food security of rural poor households. She said that the bank was offering loans at a 9 percent interest rate per year, which is lower than the prevailing market rate.

She also said that the bank was providing other services, such as insurance, financial literacy, business development, and group formation, to its customers. She urged the farmers to take advantage of these opportunities and grow their businesses.

The IFAD-VCDP Rural Finance Officer, Rosemary Iorngirim, also spoke at the meeting. She encouraged the farmers to form partnerships with other stakeholders, such as off-takers and input suppliers, as this would increase their market access and reduce their costs. She also urged them to insure their farms against natural disasters and unforeseen circumstances, as this would protect them from losses.

Iorngirim said that IFAD-VCDP was supporting about 10,000 farmers in Benue State with various interventions such as capacity building, infrastructure development, input provision, and market linkages. She said that the programme was targeting rice and cassava value chains, which have high potential for income generation and food security.

Some of the farmers who attended the meeting expressed their gratitude to LAPO and IFAD for their support. They also promised to improve their repayment culture and abide by the terms and conditions of their loans.