Oyo Govt Dumps Previous YEAP-SAfER Loan Structure, Moves Disbursement to ACCOS Amid Planting Season Pressure
The Oyo State Government has commenced fresh arrangements for the immediate disbursement of the YEAP-SAfER agricultural support loans through the Agricultural Credit Corporation of Oyo State (ACCOS), following delays and operational concerns encountered with the programme’s initial financial partner.
The latest move comes as the state intensifies efforts to ensure that farmers, agripreneurs, agricultural processors, and other beneficiaries gain timely access to funding during the ongoing planting season, a period widely regarded as critical for agricultural productivity and food security.
According to the State Government, the decision to restructure the loan disbursement process was taken in the overall interest of beneficiaries and the wider agricultural economy, particularly after implementation challenges began affecting the smooth rollout of the initiative.
The YEAP-SAfER loan scheme, introduced as part of the government’s agricultural and youth empowerment intervention programmes, was designed to support agribusiness operators across different segments of the agricultural value chain by providing accessible financing to boost productivity, create jobs, and strengthen food production within Oyo State.
However, following the official launch of the programme, government officials reportedly observed major concerns within the operational framework proposed by First City Monument Bank (FCMB), the initial financial institution engaged for the implementation process.
Among the concerns raised by the government were what it described as a significant increase in service charges beyond the terms earlier agreed upon in the Memorandum of Understanding signed between the State Government and the financial institution.
The government also cited delays in beneficiary accreditation and verification exercises, which reportedly slowed down the expected commencement of disbursement to qualified applicants across the state.
Officials explained that while discussions and engagements regarding the issues may still continue, the government could not afford to allow prolonged administrative processes to interfere with the agricultural calendar, especially as many farmers have already commenced planting activities for the season.
Consequently, the State Government formally discontinued the previous arrangement and activated an alternative disbursement structure through ACCOS to ensure that beneficiaries can receive financial support without further delay.
Under the newly introduced structure, administrative and service-related charges have now been reduced to 9 percent, a development the government says is aimed at protecting beneficiaries from excessive costs while preserving affordability within the scheme.
The State Government further disclosed that 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.
According to officials, additional disbursement figures will be released periodically as more applicants complete the ongoing accreditation process.
The government reassured applicants, farmers, and stakeholders that the YEAP-SAfER programme remains fully on course despite the restructuring process, emphasizing that all decisions being taken are intended to safeguard beneficiaries and prevent disruptions to agricultural activities during the critical farming season.
Agricultural experts have repeatedly stressed the importance of accessible financing for small-scale farmers and agribusiness operators, especially amid rising production costs, inflationary pressures, and broader economic challenges affecting Nigeria’s agricultural sector.
Observers also believe that timely intervention through the YEAP-SAfER scheme could help improve food production levels, encourage youth participation in agriculture, and strengthen the state’s drive toward food sufficiency.
The administration of Seyi Makinde has continued to position agriculture as one of the key sectors for economic growth, employment generation, and rural development in Oyo State.
The State Government also expressed appreciation to applicants and stakeholders for their patience, cooperation, and confidence throughout the transition process.
It reiterated its commitment to building a transparent, farmer-focused agricultural financing system capable of supporting productivity, job creation, agribusiness expansion, and long-term food security across Oyo State.
As accreditation and verification continue, many applicants are now awaiting confirmation of subsequent batches expected to benefit from the loan disbursement programme in the coming weeks.
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