Oyo State has commenced the disbursement process for the YEAP-SAfER agricultural support loans through the Agricultural Credit Corporation of Oyo State (ACCOS), following implementation delays linked to the initial financial partner.
The State Government said the decision became necessary to ensure farmers and agribusiness operators receive funding on time as the planting season has already started across different parts of the state.
According to the government, challenges were observed after the official launch of the YEAP-SAfER Loan Scheme, particularly in the operational structure proposed by First City Monument Bank (FCMB). The issues reportedly included increased service charges beyond what was agreed in the Memorandum of Understanding signed with the state government, alongside slow beneficiary accreditation processes.
The government explained that while engagements with the bank may continue, it could not allow administrative delays to affect farming activities and agricultural productivity during the current season.
As a result, the existing arrangement was discontinued and a new disbursement structure was activated through ACCOS to enable farmers, processors, agripreneurs, and other qualified beneficiaries access the support without further delay.
Under the new arrangement, administrative and service-related charges have been reduced to 9%, a move the government said is aimed at protecting beneficiaries and improving affordability.
The first batch of 75 beneficiaries is expected to receive disbursement this week, while accreditation and verification exercises continue in different parts of the state. The government added that more disbursement figures will be announced periodically as additional applicants complete the verification process.
The Oyo State Government reaffirmed that the YEAP-SAfER programme remains fully on course and is focused on supporting food production, job creation, and agricultural growth across the state.
It also appreciated applicants and stakeholders for their patience during the transition process, noting that the programme is designed to build a transparent and farmer-focused agricultural financing system in Oyo State.
