(Ecofin Agency) - The Federal Executive Council has approved a N3.38 billion ($9.8 million) loan facility for the Plateau Government to boost the production of Irish potatoes in the state, according to the Minister of Finance, Kemi Adeosun.

“There is a loan that we had previously cancelled from the African Development Bank (AfDB). So, it is not a new loan. The rationale is that Plateau actually accounts for 95 per cent of Nigeria’s potato production and from Plateau, potatoes are actually exported to Ghana, Niger, Chad and other countries and despite that, there are huge profit losses because there is no enough storage,’’ She said.

The Minister who disclosed this after a meeting of the Federal Executive Council (FEC) on Wednesday, explained that the loan comes with a one per cent per annum interest rate and it has 25 years repayment period with five years moratorium. She added that the Plateau government is expected to provide counterpart funding while the remaining would be borrowed.

“The amount of the loan is N3.38 billion equivalent and Plateau State ought to contribute N595 million as their own counterpart funding. We have put a process in place to ensure adequate monitoring and evaluation. It is expected to create jobs in a potato value chain, from processing, storage, replacement of current inputs and indeed, export.”

Adeosun noted that part of would be spent on construction of roads to enable potato farmers transport their produce from their farms to the market.

Anita Fatunji