On 21 January 2021, Namel hosted the first significant stakeholder meeting and sensitisation event for cassava processors under the Private Sector Led – Accelerated Agriculture Development Scheme (PAADS) in Abuja. This event underscores the commitment of the Central Bank of Nigeria (CBN) to bolster food security and address unemployment through innovative agriculture finance programmes.
Developing a Cohesive Strategy for Agricultural Growth
Intending to engage 370,000 youths in agricultural production, the CBN’s PAADS initiative is a visionary step towards self-sufficiency in the agricultural sector. Namel’s roundtable brought together key stakeholders, including service providers, financial institutions, and beneficiaries, to align on the scheme’s implementation strategies and to ensure the success of this multi-year partnership.
Modernising Agriculture: A Paradigm Shift
One of the most pressing challenges in Nigerian agriculture is using outdated machinery and techniques. The stakeholders’ meeting emphasised the importance of modern land clearing and primary production practices. Adopting these methods is expected to boost production by at least 60%, even without reliance on substandard fertilisers.
Fostering Best Practices and Sustainable Mechanisation
Namel’s partnership with various service providers has set the standard for best practices in land clearing. By advocating for and implementing the CBN-approved methods, Namel is not only facilitating the PAADS programme but also ensuring that modern, sustainable agricultural practices are at the forefront.
A Five-Pillar Approach to Agricultural Success
The PAADS scheme is founded upon five key pillars: funding, land clearing, mechanisation, production, and marketing. Namel has highlighted that dedicated efforts towards each pillar are instrumental in ensuring the profitability of investments and the scheme’s sustainability. Notably, applicants are eligible for facilities up to 2 Billion Naira, with a favourable interest rate of 5-9%, encouraging adopting best practices for efficient loan repayment.
Clarifying Roles to Guarantee Effective Collaboration
The success of PAADS is contingent upon the strategic collaboration of all parties involved. Namel’s event delineated the responsibilities of each stakeholder:
- CBN: Providing guidelines, managing funds, and evaluating the programme’s impact.
- Service Providers: Ensuring the land is primed for cultivation.
- Participating Banks: Conducting due diligence, accessing funds for lending, and monitoring facility utilisation.
- Anchors/Processors/Off-takers: Managing the farms, providing extension services, and ensuring prompt produce payment.
- Small-holder Farmers: Preparing the land according to the approved standards and guidelines.
- NAMEL’s PSD-SMS: A Leap Towards Sustainable Mechanisation.
NAMEL’s Private Sector Driven – Sustainable Mechanisation Strategy (PSD-SMS) is a revolutionary scheme offering agricultural machinery on a lease finance basis. It promises self-financing, increased asset base, easy loan repayment, and employment generation. Those enrolled in PAADS are automatically eligible for the Agriculture Business Programme (ABP) and can select NAMEL for their mechanisation needs, benefitting from a 5-year warranty and a buy-back clause.
Conclusion: A Future-Focused Agricultural Framework
Namel’s proactive engagement in the PAADS programme is a testament to its commitment to transforming Nigeria’s agricultural landscape. Through strategic partnerships and a focus on sustainable practices, Namel is poised to drive the agricultural sector towards an era of productivity and prosperity.
For more information on the PAADS programme and Namel’s services, please get in touch with us at info@namel.ng
The adherence to CBN-endorsed best practices in land clearing, championed by Namel’s partnerships, has become the gold standard. Through such advocacy and implementation, Namel not only underpins the PAADS programme but also steers the sector towards sustainable and environmentally conscious mechanisation.
