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By NBF News
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Nigeria has received a grant of $105million for agricultural development to support the agricultural transformation agenda of the present administration.

The Federal Government yesterday signed the financing agreement with the International Fund for Agricultural Development, (IFAD).

The agreement will enable IFAD to provide finance for the next six years  specific projects that would boost the agricultural value chain.

Explaining the significance of the agreement, Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, said the IFAD credit would be beneficial to the country as it would help create jobs and help the country to be self sufficient in food production.

She said the agreement comprises an IFAD credit of $74 million which attracts zero interest rate and a repayment period of 40 years as well as a grant of $0.5 million.

The minister explained that the credit was on soft terms conditions, adding that the FG, states and local councils would provide counterpart contribution to the tune of $31.2m.

She said, 'We are signing this credit to underscore the importance of IFAD's commitment to the development of agriculture in this country and it also demonstrates that our relationship with IFAD is yielding benefits to this country.

The IFAD partnership development programme which is what we are flagging off today is valued at $105.2mn which comprises of an IFAD credit of $74m and a grant of $0.5.The credit is on soft terms and the FG, states and councils will provide counterpart contribution to the tune of $31.2mn.

This project will be implemented over a period of six years and there is no doubt that it will be a strong contributor to the very important plan for agriculture sector. The IFAD credit is one of the most beneficial because there are no interests, 0.75 per cent commitment charge and 40 years repayment period and so it is really a very great credit for the country to access.'

Also speaking at the event, Adeshina said the funding would be used to boost rice and cassava production in six states. The project, he noted would 40,000 households in Anambra, Ebonyi, Ogun, Niger, Benue and Taraba States.