GS Microfinance Bank Moves to Promote Agriculture in Nigeria

Lender recognizes importance of agriculture in rural areas of Nigeria and provides loans to improve farmers' yields.

Business Day
Oyibo Egwuoniso
Published: January 1, 2009

Committed to serving the rural community and promoting agricultural development in the country, GS Microfinance Bank has moved its services to a remote area on the outskirts of Lagos, granting loans to 25 piggery farmers at Oke Aro, Ogun State . Segun Adaju, managing director of the bank announced this during an annual prayer and thanksgiving service organised by the farmers last weekend.

Adaju said the bank’s movement to an interior place like Oke Aro in Ogun State was informed by its outlook of the business of microfinance banking which goes beyond the high street of Lagos to the potential customers who live where bankers would ordinarily not go.

According to him, “the importance of farming in an economy like Nigeria cannot be underestimated as it serves as the bedrock of other sectors,” adding that “the loans are meant to help the farmers improve their production and yield hence increase the output of food in the country and improve the farmers’ standards of living.

While informing those present that this is just the beginning, as it is a test case of the bank’s commitment to the farmers’ financial needs; Adaju assures that measures have been put in place to ensure that monies given are used judiciously.

Such measures, he disclosed, involves personally determining and giving the amount of loans needed by the farmers through an on ground assessment of the farms, encouraging the farmers to work in groups in order to checkmate one another on progress made and the use of special risk management techniques.

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