Oyo Government urges farmers to enhance SAfER loan repayment to sustain agricultural growth, promote food security, and strengthen economic recovery across the state.
The Oyo State Government has called on farmers to show greater financial responsibility by improving their compliance with the SAfER loan repayment scheme, a critical initiative designed to boost agricultural growth and food production across the state.
Speaking during a strategic review meeting held in Ibadan with representatives of Participating Financial Institutions (PFIs), the Chairman of the Agricultural Credit Corporation of Oyo State (ACCOS), Sheikh Taofeek Akeugbagold, expressed concern over the low repayment rate recorded under the 2024 Sustainable Action for Economic Recovery (SAfER) agricultural loan programme.
According to Akeugbagold, the repayment performance of beneficiaries has been disappointing.
Out of all loans disbursed in 2024, only 36 percent has been repaid so far. He warned that this low level of SAfER loan repayment threatens the sustainability of the entire scheme and limits the government’s capacity to assist more farmers in need of funding.
“The SAfER loan initiative was established to empower farmers, increase food production, and support the state’s economic recovery,” Akeugbagold explained.
“But the programme’s success depends on timely repayment by beneficiaries. When farmers default, it restricts our ability to reach others who deserve the same support.”
He emphasized that the loan should not be mistaken for a grant. Instead, it is a revolving facility, meaning repayments from existing beneficiaries are used to finance new applicants.
He urged all beneficiaries to honour their financial obligations, stressing that the state government cannot continue providing financial assistance if loans are not repaid.
Akeugbagold further pointed out that the SAfER loan was designed as a partnership between the government and the farming community.
Both parties, he said, must uphold their responsibilities to ensure the programme’s continuity.
He reminded farmers that funds for the scheme were sourced from the public purse, and thus repayment is not just a financial duty but a moral obligation.
“The SAfER loan repayment process is a vital part of our agricultural financing strategy,” he said.
“Farmers must understand that every loan repaid helps another farmer rise. The sustainability of this scheme depends on collective responsibility.”
The ACCOS chairman also tasked the financial institutions involved to intensify recovery efforts and adopt creative strategies for loan enforcement.
He urged them to engage guarantors, enhance communication with beneficiaries, and apply fair but firm measures to ensure that defaulters meet their commitments.
Reaffirming the Corporation’s commitment to strengthening agricultural financing, Akeugbagold noted that Oyo State remains dedicated to supporting farmers through policies that promote productivity, reduce poverty, and enhance food security.
He assured that ACCOS will continue to collaborate with stakeholders, including local government authorities and farmers’ cooperatives, to address repayment challenges.
In response, Mr. George Martins, who represented the Participating Financial Institutions, commended the state government for initiating the SAfER programme and acknowledged that the institutions have been working diligently to recover outstanding loans.
Martins attributed the delay in repayments to several challenges facing farmers, including fluctuating market prices of agricultural produce, unpredictable weather conditions, and the growing impact of climate change on crop yield.
These factors, he said, have reduced many farmers’ earning power and made repayment difficult.
Despite these constraints, Martins assured that the financial institutions remain committed to full recovery of outstanding debts and continued support for the farming community.
“We recognize that many farmers are struggling due to factors beyond their control,” Martins said.
“However, we are collaborating with ACCOS to make repayment flexible and achievable. Our goal is to maintain the integrity of the SAfER loan repayment system while ensuring farmers stay productive.”
The meeting concluded with a resolution to introduce stricter monitoring mechanisms, better farmer education on financial literacy, and improved coordination between government agencies and the private sector.
Stakeholders agreed that loan recovery should be balanced with support measures that help farmers overcome market and environmental challenges.
Participants also highlighted that timely repayment of loans would not only sustain the SAfER programme but also enhance Oyo State’s reputation for responsible agricultural management.
They emphasized that an efficient SAfER loan repayment structure could attract more investments into the agricultural value chain, leading to job creation, rural development, and long-term food stability.
Experts at the meeting noted that loan repayment culture plays a vital role in ensuring the continuity of credit facilities for smallholder farmers.
They called on farmers to embrace the discipline of repaying loans as a means of building trust with financial institutions and government agencies that provide support.
The SAfER initiative, launched as part of Governor Seyi Makinde’s economic recovery agenda, remains a cornerstone of Oyo State’s agricultural policy.
The programme was designed to support both crop and livestock farmers, provide access to credit, and stimulate self-reliance in food production.
As the government intensifies efforts to strengthen the agricultural sector, officials insist that sustaining the SAfER scheme depends on a culture of accountability and cooperation among beneficiaries.
The call for timely loan repayment is therefore not merely a financial demand but a step toward building a self-sustaining agricultural economy.
In his final remarks, Akeugbagold reaffirmed that Oyo State remains committed to improving the welfare of its farmers through consistent funding, modern agricultural practices, and reliable financial support.
However, he stressed that the continuity of these efforts depends on one key factor — SAfER loan repayment.
“When our farmers repay, they empower others and ensure the future of agriculture in Oyo State,” he concluded.
“The circle of progress begins and ends with accountability.”
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