‘Banks Credit to Agric Sector Remains at Five per cent in Ten years’
The Securities and Exchange Commission [SEC] says credit to agriculture sector in the last 10 years has remained as low as 5 percent, severely hampering the sector’s growth and development of the economy.
It said only the capital market that has the capacity to unlock better access to credit and finance for the sector through innovative financing structures and products.
SEC further said that the same scenario is playing out in the nation’s mineral sector where minerals are presently dug up on a subsistence basis and sold in markets around the world in disorderly fashion.
The Acting Director General of SEC, Ms. Mary Uduk disclosed this on Wednesday, while briefing journalists on the commission’s planned International Conference for the Nigerian Commodities Market 2020 slated for Monday in Abuja.
Uduk however, stressed that despite the credit limitations, agriculture remained an important part capable of delivering on the country’s food security needs, providing jobs and increasing the country’s foreign exchange earnings.
According to her, a structured market for commodities will provide a fairer playing field for local market participants while providing the required infrastructure for the international market to be exposed to Nigerian commodities.