FG Secures N3.38bn AfDB Loan to Boost Irish Potato Production in Plateau
Federal Government has secured a N3.38 billion loan to boost potato production in Plateau State.
The Ministry of Finance under the purview of Kemi Adeosun facilitated the loans, which has a five-year moratorium, thereafter whatever remained of the loan would be paid at the rate of one percent per annum within 25 years.
Adeosun briefed State House correspondents of the development, after the Federal Executive Council meeting, chaired by Acting President, Yemi Osinbajo.
She noted that bulk of the loan would go into the provision of infrastructure, quality seedlings, transportation,marketing which will in turn significantly boost the value chain in the production of irish potatoes.
According to her, over 60, 000 jobs are expected to be created in the potato value chain, cutting across over 100,000 farming communities in at least 17 Local Government Councils in the state.
Adeosun also revealed that Plateau state would be providing N595million as counterpart funding for the project.
The implementation would be jointly executed by FADAMA project and a unit in the state ministry of agriculture, while the programme is aimed at reducing post harvest loses.
The idea was first muted during the administration of ex-President Goodluck Jonathan.
The former Minister of Agricuture Akinwumi Adesina was said to have introduced the initiative to develop value chains for selected roots and tuber crops in the country.
Plateau state is Nigeria’s largest producer of potatoes.
The Finance Minister said,”my approval was sought on behalf of Plateau State to support the potato value chain, there is a loan which we had recently cancelled from the ADB, so its not a new loan, we cancelled them and re-directed the money to a request by Plateau state government to support the potato value chain.
“The rationale is that Plateau actually accounts for 95percent of Nigeria’s potato production and from the state potato is being exported to Ghana, Niger, Chad and other countries, despite that there are huge post harvest loses, there is not enough storage and there is so much more that we could be doing with these potatoes, so the ADB came up with a comprehensive programme.
“The programme will affect over 100,000 farming families, it is expected to create 60,000 jobs in the potato value chain, everything from processing, storage, replacement of current import and indeed export. The terms of the loan are 1percent per annum as interest rate with 25 years period as well as a 5-year moratorium.
“The loan amount is N3.38bn and Plateau state will contribute N595million as their own counterpart funding and we have put procedures in place to ensure that there is adequate monitoring and evaluation but this is really important economic development for the nation and Plateau state in particular.
“We have real advantage in potato, so we are going to invest the money in some cases for roads, just to allow products to come out,some cases its storage, transportation and in some cases its access to seedlings because that was one of the problems that was identified, they don’t have good planting materials and seeds, so a lot of that is going to be addressed under this scheme”.
