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How To Get Bank Of Agriculture Loans 2019: All You Need To Know

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bank of agriculture loans 2019

How To Get Bank Of Agriculture Loans 2019: All You Need To Know

bank of agriculture loans 2019

There is no way the Bank of Agriculture (BoA) will release a loan or grant to you without first confirming you are really a farmer in Nigeria. The bank of agriculture loans 2019 is to encourage farmers in Nigeria as well as provide access to capital for the development of the agricultural sector.

The bank of agriculture (BoA) is a federal government institution in Nigeria that provides credit for both large and small-scale farmers. Every year, the bank of agriculture makes available a specific amount of credit for farmers in Nigeria. You need to know that the bank of agriculture loans 2019 is no different from the previous years.

Read: CBN agricultural loan 2019: all you need to know

Although the bank of agriculture was restructured in the year 2000, it has actually been in existence since 1972. You need to also check out agricultural grants in Nigeria 2019 so that you get more information about agricultural credits

Bank Of Agriculture In Nigeria

Bank of agriculture came (BoA) into existence in the year 2000 but has been in operating under different names since 1972. The main objective of this credit institution is to provide credit to Nigerian farmers and also support the agricultural sector. This bank is jointly controlled by the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance.

You need to know that the bank of agriculture is under the supervision of the Ministry of Agriculture in Nigeria.

Different Types Of Bank Of Agriculture Loans 2019

The bank of agriculture loans 2019 comes in different categories, so you need to identify the one that best suits your farming venture. Bank of agriculture provides the following credits to farmers in Nigeria:

  • Agricultural microloans
  • SME loans
  • Non-agricultural microloans
  • Cooperative and farmers group loans
  • On-lending loans
  • Agra-business loans, and
  • Funded and guaranteed collaborations
  1. Bank of agriculture loans 2019: Agricultural microloans

The bank of agriculture through its agricultural microloans provides credit for both agricultural and non-agricultural activities in Nigeria. You can access this agricultural microloan as an artisan, trader, farmer, Agric produces marketing, etc. The agricultural microloans do not exceed N250, 000 for the term, not more than 2 years depending on the type of project. You can access this loan as an individual or as part of a co-operative group or society.

See: How to start oil palm plantation in Nigeria

It is important that you know there is a condition for the provision of 2 acceptable guarantors and 20 percent lien deposit.

  1. Bank of agriculture loans 2019: SME loans

The Nigerian bank of agriculture in its magnanimity also provides farmers with SME loans. This small and medium enterprises loan provides a maximum of N5 million for agricultural projects. You are required to provide collateral before you can access the loan.

  1. Bank of agricultural loans 2019: Grow and earn more (GEM) loan program

This particular initiative is targeted to improve the livelihood of Nigerian women. Its main objective is to improve the financial abilities of women in Nigeria. The maximum loan limit is N1 million with an annual interest rate of 14 percent. As a woman, you need to open an active account with the bank of agriculture at least 12 weeks before applying for this loan.

As an applicant for this GEM loan, you must note that the loan and grace period depends on the project type. Here, loans can be granted to individuals and members of groups. One good thing about the loan is that you don’t need to provide collateral but 2 acceptable guarantors. In order to be eligible for this loan, you need to have 10 percent lien deposit in the savings account.

  1. Bank of agriculture loans 2019: collaboration and special credit

Aside from the direct disbursement of loans to farmers, the bank of agriculture also partners other agencies to improve the agricultural sector as well. This collaboration credit scheme involves an arrangement between BoA and other government agencies with the aim of providing the fund to identified groups or persons at a minimal interest rate.

There is usually a memorandum of understanding (MOU) as a condition for this type of collaboration in addition to the subject of the targeted group and in line with BOA lending conditions.

Requirements For Accessing The Bank Of Agriculture Loans 2019

You need to know that there are different requirements for opening an account with the bank of agriculture in order to access the loans. These requirements include the following:

  1. Individual requirements

Before you can open an account with the bank of agriculture as an individual, you must meet the following requirements:

  • You must have completed and signed an account opening form
  • Ought to have to complete your mandate or signed card
  • Provide three recent passport photographs
  • A recent copy of your utility bill
  • Signed letter to the bank
  • A photocopy of a means of identification, for example, your national I.D card, international passport, or driver’s license
  • Minimum of N3, 000 as an initial deposit
  1. Requirements for corporate societies, groups, clubs, companies, etc

Also see: How to rake millions from castor seed farming in Nigeria

In order to access the bank of agriculture loans 2019 as a group, here are the requirements such a group must meet:

  • The group must have completed and signed an account opening form
  • Complete mandate and/signed card
  • A document showing the resolution to open the account with the bank
  • Copy of the constitution ( Original copy to be sighted)
  • The memo and articles of association (original copy to be sighted)
  • A copy of the certificate of registration or incorporation ( original to be sighted)
  • Minimum of N10, 000 as an initial deposit

The Interest Rates For Bank Of Agriculture Loans 2019

The different loan packages by the bank come with different interest rates which are very important for you to understand.

  • 14% annual interest for SME Agricultural production
  • 14% annual interest for SME Agro-processing
  • 20% annual interest for SME Agriculture marketing
  • 14% annual interest for GEM packages
  • 20% annual interest for Non-Agricultural Micro Credit Loan
  • 12% annual interest for Agricultural Micro Credit Loan

You can always visit the branch of BOA closest to you for more information regarding how to access the bank of agriculture loans 2019.

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Agriculture

How To Start Lucrative Chia Business in 2021

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Chia seeds which is the bedrock of Chia Business are edible seeds grown as food in many countries of the world. Slowly gaining momentum in Africa, chia seeds consumption is presently valued at about 400 million Naira and is projected to be valued at 600 million Naira before the year 2025. Chia seeds are becoming more popular as many people have begun to massively use it as a substitute for meat-based protein.

Meet Chia Seed: The Bedrock of Chia Business

Chia Business centres on the cultivation and marketing of Chia seeds. Chia seeds are of the mint family of lamiusee with dark green, thick and wrangled leaves. Each plant has flowers with two lips containing 13 seeds. Chia seed is mostly consumed by vegetarians who opt for plant-based proteins.

Chia seeds grow in tropical environments requiring a minimum temperature of 11 degrees Celsius and maximum of 36 degrees Celsius to be fully matured. Chia Seed Farming is a lucrative business. If you have the wherewithal to cultivate and market it, you can make tons of money for you within the stipulated business cycle.

Start Lucrative Chia Business

The Market value of Chia Business

Chia business is lucrative to do because it avails the investor the following business opportunities:

1) Can Be Eaten as Food:

Chia seeds can be sold to consumers for food. Chia seeds have a wide range of applications in meals: they can be added to smoothies, yoghurts, parfaits, salads, milkshakes and even cereals.

2) It Can Be Sold For Money:

Chia seeds are very expensive and could go as high as N6000 per bag. Chia seeds can be cultivated and sold for profit.

The Health Benefits of Chia Seeds

Chia seeds sell well because of its health and nutritional benefits. Hence, people buy Chia seeds irrespective of the cost because:

  • Chia seeds help relieve constipation.
  • Contain calcium and manganese which improve bone and oral health.
  • Fights osteoporosis.
  • Chia seeds are excellent sources of protein.
  • They are super healthy proteins as they do not contain cholesterol.
  • Fights insulin and stabilizes blood sugar.
  • They contain anti-oxidants which prevent the production of free radicals – cancer causing agents.
  • They’re gluten free and can be eaten raw.

Steps to start a Lucrative Chia Business in 2021

To proceed to cultivate and market Chia seeds on a commercial scale, please consider the following:

1) Get enough funds:

Chia seeds are expensive to buy. Setting aside an investment for it will pay hugely in the long run. It is important to have a business plan that will enable you access funds from financial institutions. If you don’t want corporate funding for the business, you may consider getting funds from family, friends, and acquaintances. However you source funds, endure that the capital you have is enough to start and run this business successfully.

2) Choose the right soil:

Chia seeds thrive on fertile soils. Hence the land you buy or rent for plating this crop should have sufficient clay and loamy. Avoid malnourished and sandy soils. Instead, choose a soil that can retain a good amount of moisture. Plant your chia seeds in well drained soils.

3) Cultivate the Crops:

Chia seeds require soil preparation by disruption and loosening. After properly tilling the soil, create trenches in a row of 2cm, broadcast the seeds and cover the soil. When you notice weeds, remove them immediately.

4) Harvest:

Chia seeds are harvested after the flowers have fallen off. You have to hand pick and spread them to dry.

Conclusion

Starting lucrative chia business specifically Chia seed business in 2021 has attendant challenges such as high cost of seeds, seemingly complicated nurturing process, crop management, and the challenge of the harvesting of chia seeds by hand.

However, with the right capital and viable farm management practices the business can be done with much success and less stress. Employing excellent marketing strategies can help the business grow into a highly lucrative and profitable enterprise or company.

Chia seed already has a wide market demand, employ the best strategies, sell off your seeds, and make your profits.

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Agriculture

How to Start a Lucrative Cabbage Business in Nigeria.

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Cabbage business is fast becoming one of the most lucrative vegetable businesses in Nigeria because of its popularity as a major ingredient for preparing salads. Salads are majorly served in ceremonies and festive seasons. If you start and effectively manage a lucrative Cabbage business in Nigeria, you could be reaping returns in millions of naira weekly.

In starting a lucrative cabbage business in Nigeria, you must have a farm to cultivate cabbages. Cabbages thrive in a cool and moist environment. The crop is not resistant to drought. This means that you should plant your Cabbage seeds during its favourable season which is the rainy season when the weather is till cool enough for it to sprout and grow to maturity.

In getting your Cabbage seeds to plant, please go for high quality seeds which are resistant to pests and diseases. The hybrid variant cabbage seed is of a high quality and can resist pests and diseases. This is the breed of Cabbage seed you should plant if you desire good returns on your investment.

Steps to Start Cabbage Business in Nigeria and Profit From It

Stage 1: The Pre Planting Stage

It is advisable to plant cabbage seeds in a nursery 4 to 6 weeks before transferring the crop to the main farm. While the seeds are being raised in the nursery, use this time to prepare the farm for planting the crops. This involves weeding, tillage, making of ridges or molds where the Cabbage seedlings will be planted. This is all about the pre-planting stage.

Stage 2: The Planting Stage

To ensure bountiful harvest, it is important to note the following while planting your Cabbage:

1) Dig a hole of about three centimeters deep, insert two seeds and cover the hole.

2) Give a space of 45 centimeters between each plant. The spacing should be done depending on the variety of seedling you are planting.

3) Ensure that the P.H of the soil is between 6.5 and 7.5.

4) Always ensure that your cabbage farm is well-irrigated. Avoid areas prone to drought as much as possible. If there will be drought, make arrangement for alterative water sources with which you will irrigate the farm like a borehole or well. Regularly irrigate (practice drip irrigation) and mulch your farm to provide enough water in the farm for the crop and prevent excessive loss of soil water due to evaporation of water from the soil.

Cabbage Business in Nigeria.

5) During the development stages of your cabbage plant, apply manure regularly to provide your crops with the nutrients needed for their healthy growth. When preparing the soil for planting, it is advisable to be heavy-handed with manure. That is to say you apply sufficient manure to the farmland while preparing it for planting the crop.

6) It’s important to control pests such as maggots, cabbage, and worms n your cabbage farm. For this reason, only use the hybrid variant of the seed which is resistant to plant pests.

Stage 3: The Harvesting Stage

Harvest your cabbage only when they have fully matured to ensure a longer storage (or shelf) life. Depending on when you plant, your cabbage should be fully matured in about 3 to 5 months.

After harvesting your cabbage, you are set to sell the product. Go to the market and sell to the vendors there. You can also sell off to the Hausa stores in your community. Get contacts of restaurants and caterers, healthy juice entrepreneurs and offer to be their vendor.

Conclusion

Cabbage farming is highly lucrative in Nigeria; not many people have ventured into the business when compared to the market demand of the product. Cabbage farming is encouraged because aside it being lucrative, it doesn’t require heavy capital. So, if you want to go into Cabbage business in Nigeria, I really encourage you to do so.

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Agriculture

How To Start Palm Oil Business In Nigeria

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Palm oil business in Nigeria is wide and almost all aspects of it is profitable. Palm oil is extracted from oil palm fruits. It is an edible liquid extract gotten from palm fruits of a palm tree using an extraction process. Palm oil is used for many things and generally, in the Nigeria food industry, Palm oil is commonly used to prepare traditional soups in Nigeria. Almost all tribes in Nigeria consume palm oil which makes it a “must have” agricultural product in every home.

Palm oil is used to prepare almost all the traditional soups that we have in Nigeria like Egusi, efo riro, ugwu soup, bitter leaf soup, edika nkong and so on. The product is highly recommended by nutritionist due to its nutritional benefits; it contains vitamins, minerals and low in cholesterol which is makes it good for the heart. Besides its usefulness in food, Palm oil is used for many other things like the ones listed below.

Other Benefits/Uses of Palm Oil:

  • It is commonly used to prepare soap for bathing and washing.
  • It serves as an antidote for poison.
  • It is used to produce animal diets.
  • It serves as food preservatives.
  • It is used to prepare some local cosmetics.
  • It is used in the treatment of skin allergy, boil, cough, etc.

Palm Oil Business In Nigeria – An Overview

Oil palm business in Nigeria started as far back as 1900 in the Niger delta region of the country. It is regarded as one of the major products besides cocoa for exportation in Nigeria and hence served as a source of foreign exchange until 1999 when there was sudden decrease in oil palm production business in Nigeria. This was due to abandonment of the agriculture industry in Nigeria.

In 2003, an increase in oil palm production business was observed across the country due to a restructuring of the agriculture industry in Nigeria by the then government. This brought back the popularity of oil palm business in the country. In Nigeria, oil palm business is considered lucrative because of its wide both either domestically in homes and in several industries across the country. Till date, a substantial quantity of the product is still being exported from the country to many parts of the world.

How To Start Palm Oil Business In Nigeria

How To Start Palm Oil Business In Nigeria

How To Start Palm Oil Business In Nigeria

Starting palm oil business in Nigeria is quite simple but also tasking. This is because it requires a proper and comprehensive market survey to be done before embarking on the business. This article shares extensively how to start a palm oil business in Nigeria.

Steps Involved In Starting Palm Oil Business In Nigeria

1) Get A Working Business Plan

A good business plan is required for a palm oil business which will include total budget for the business and market survey report. A good market survey is compulsory and important in this business. This involves many things but basically it involved consulting an experienced palm oil entrepreneur to know the ins and outs of the business.

For example, as a potential palm oil entrepreneur, you must know the different types and breeds of palm trees and the quality of palm oil that they produce. Also, it is required that you have an idea of palm oil nursery, nursery practices, and planting practices especially if you wish to go into the oil palm raising business and not just the sales/distribution of palm oil. You must also know the storage practices, palm oil processing, palm oil market trend, prices, competitors, available customers, regulatory bodies and taxes.

You will not be able to know these without adequate market research. So, ensure that you carry out subatsntive market research/survey on palm oil business and document the report in you palm oil business plan.

2) Get The Required Start Up Capital

A startup capital can be sourced from personal savings, cooperative loans, Bank of Industry in Nigeria (BIN), Bank of Agriculture in Nigeria (BoA), and other government empowerment programs.  Feel free to write the banks involved, if your proposal is well structured; it can yield a positive result.

Generally, your startup capital must cover the following cost:

i) A Land (Purchased or rented):

A land will be needed for the oil palm plantation. So, you must get the required capital to get the size of the land you need for this business. Of course, the size of land would depend on the number of palm trees you want to start with, that is if you want to go into oil palm plantation business and not palm oil marketing.

 ii) Palm Tree Seedlings:

Again, you need this if you are not interested in just buying and selling of palm oil but rather oil palm plantation. In this case, you will have to first consult an agriculturist, a crop scientist or an experienced oil palm farmer to give you the best seedlings to plant. This is very important because a technical know-how is required when choosing a seedling for oil palm plantation else you mess the whole business up! It is advisable to start with hybrid palm tree seedlings because they mature faster and produce fruits earlier than the local palm trees. In fact, some species of the hybrid palm trees start fruiting within 3 months of planting.

iii) Get The Machines For Processing:

This includes milling and extracting equipment. Aside from using it to mill and process oil for your business, it can help to generate income for the business. In addition, people can come to mill and extract palm oil using your machine and you will make extra money from this.

iv) Get A Good Water Source:

A good water source is important and this would be either a borehole or well. Yes, if sinking a borehole is costly, you can simply dig a well; it will serve the same purpose as a borehole. Water is used during milling and extraction of palm oil. Again, you need this process if you want to go into oil palm plantation business.

3) Labour:

You will definitely need to hire people to help out during each stage of the oil palm business, from land cultivation to sales of products. You can start with contract staff where they work for a certain period, when needed at different stages and they get paid for the work they do and leave.

4) Products Packaging:

This depends on how you want your product to be packaged either in sealed disposable nylon bags or kegs (different liters). However you choose to package your product, don’t forget to label them properly using your company/business logo and emblems which will include your business name, address and other necessary information. This serves the purpose of identification and marketing.

5) Business Registration:

Any business that wants to be trusted in Nigeria and stand the test of time must be registered, hence, you must register your business. The Cooperate Affairs Commission (CAS) in Nigeria is the body set aside by the government to register businesses, companies, and allied bodies in Nigeria. For you to become a certified business owner in Nigeria, you must register your palm oil business with the CAC. Recently, the processes only take few weeks.

6) Means Of Storage:

Palm oil is generally stored in drums or tight containers. Make sure the place for storage is cool and dry; don’t store where it is exposed to sunlight.

7) Means Of Transportation:

As a startup entrepreneur, you can register with small scale logistics companies and they will help with the delivery of the business. Using them makes delivery to customers safer, and faster and best of all is relatively cheap and reliable.

8) Advertise And Digitalize:

In this era of digital and hybrid advertisements, make yourself available online, post online about your business, speak to people, and display your products online. Also, to make purchases easier, take your digitalization game to another level by using an online payment processor like Paystack, Flutterwave, etc. to receive payments.

You might also consider registering with online listing platforms and e-shopping stores like, JiJi, Jumia, Shopify, Oberlo, and so on to sell your product. This will go a long way in broadcasting your business and bringing a lot of returns in the short and long term.

Peradventure you don’t have enough capital to start an oil palm plantation, which is not a good reason not to start with what you have. It’s simple! Just research and speak to oil palm suppliers closer to you. Buy from them, repackage into more attractive containers and sell.

Conclusively, doing oil palm business in Nigeria is one of the best decisions you will ever make, if well planned. This article will serve as a template for any aspiring/potential oil palm entrepreneur. Remember all businesses require hard work, perseverance, dedication and optimism. In all, I wish you the best of luck!

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