Sterling Bank Plc has financed the purchase of tractors for members of the Tractors Owners and Hiring Facilities Association of Nigeria (TOHFAN). The cost of the tractors is put at N50 million. The financial assistance, according to a statement from the lender, is geared towards sustaining its stronghold in the agriculture finance space, which earned it two awards – the Best Bank in Commercial Agriculture Credit Scheme (CACS), and “Agric Bank of the Year 2014 in Nigeria” – in the last one year.
Sterling Bank finances the purchase/acquisition of tractors from reputable tractor manufacturers such as Massey Ferguson, Mahindra, New Holland, John Deere and Tak tractors, which will also provide basic training on utilisation and offer after sales maintenance services.
The tractors, which have been distributed to members of the association in the first disbursement, would help in the adoption of mechanised agriculture, leading to additional hectare coverage, higher yields and enhance food security in the country. The lender noted that its involvement in the agricultural sector was based on the need to reposition the sector as the main stay of the economy especially with the dwindling revenue from oil.
It explained: “Sterling Bank Plc has continually restated its commitment to the strategic growth of the agricultural sector by providing adequate funding in alignment with the on-going reforms in the sector aimed at repositioning it as an attractive business proposition, an input provider for the manufacturing sector and a key foreign exchange earner.
“The best bank in Agric Award was conferred on the bank in recognition of its critical role in the dispensing of financial services to actors in the Nigerian agricultural value chain. This we have demonstrated again with the financing of the tractors, which will add value to the sector.”
The National Treasurer of the association, Abdullahi Lawal, who also confirmed the development, commended the bank for supporting the association and said that it would go a long way in improving the output of the beneficiaries. His words: “We received a facility of N50 million from Sterling Bank to finance the purchase of 14 tractors, which we have distributed to beneficiaries.
The facility would be repaid within the next three years. The beneficiaries would be repaying specific amount of money monthly based on the brand of tractor obtained.” Lawal added that since the Association obtained the loan directly, beneficiary members were not tasked to provide collateral as the association guaranteed all its members.
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