Ilorin , Oct. 2, 2023: The Bank of Agriculture (BOA) says it is working assiduously to recover the N243 million loan disbursed to 150 debtors between 2011 and 2024 in Kwara.
The BOA Ilorin Branch Manager, Mr Dele Aderibigbe, said on Monday in Ilorin that the loan, termed as warehouse loan, is classified as bad debt, but still under monitoring for recovery.
The BOA manager said that the bank was already in talks with the telecommunication companies and other stakeholders that could make tracing the debtors easy.
”The loan is meant to be a revolving loan to be paid back to give other people opportunity, but it is unfortunate that some people see it as a national cake that should be eaten from.
”The problem we have with most of them is that they use the loan for something different from what they obtained it for.
”Why get a loan to marry second wife or to throw parties?
”We are advising them to pay up because they cannot go scot free; through their guarantors and some other measures we are taking already, we will nab them,” Aderibigbe said.
He said in spite of the fact that the bank was poised to improve lives of Nigerians, some people are bent on frustrating government efforts.
”We don’t just approve loan and disburse without carrying out investigations on the project.
”We do our due diligence from Project Identification Visit, Pre-disbursement visit and Pre-take off visit, before the final disbursement.
”And in a year, the loan we give out is between N250,000 and N1.5 million at 14 per cent reducing balance interest.
”So, it is not that the process or payment method was cumbersome, they just chose not to pay it back,” the BOA manager explained.
BOA was established to carry out functions of a development finance institution for the agriculture and rural development sector.
It provides agricultural credit finance to support all activities along the agricultural value chain, rural savings and Micro, Small and Medium Enterprises