The Chairman, Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) Mr. Stephen Okon, has revealed that a total of 1,232,326 loans valued N130.903 billion were guaranteed from inception in 1977 to May 2022 out of which 973,646 beneficiaries had repaid a total of N98.91 billion.
In terms of loan recovery, he said a total of 11,726 loans valued at N801.058m were repaid under the Scheme in the FCT from the inception of the Scheme.
“These records show the level of commitment of the officers in the FCT as well as the determination of the farmers to utilize the opportunities offered by the scheme to empower themselves and improve their lots. We do hope that before long, participants in the agricultural value chain in the FCT will take advantage of the opportunities provided in the Amended Act.”
Okon stated this Thursday in his remarks during the 2021 ACGSF National Farmers’ Award held in Abuja.
He said, “The ACGSF Scheme has proved relatively successful in de-risking the agricultural sector in Nigeria as evidenced in the number of loans guaranteed from inception to date. It is worthy of note that the FCT from January to May 2022 has guaranteed a total of 82 loan beneficiaries under the scheme, valued N22.580 million. “This brought the total guaranteed loans in the FCT from inception of the scheme in 1978 to May 2022 to 14,258, valued N1.748 billion.
“Indeed, this is part of the proactive measures to encourage people and cushion the impact of the global crises on the economy and support the agricultural sector. Truly, the Federal Government, through the ACGSF scheme as well as other development finance interventions of the CBN has continued to promote the quest for the nation to attain food sufficiency,” Okon stated.
The Agricultural Credit Guarantee Scheme Fund (ACGSF) Best Farmers of the Year Award was introduced in the 1980s to recognize selected farmers that borrowed under the Scheme and repaid within a specified period while adopting best agronomic practices to achieve good yields.
The Agricultural Credit Guarantee Scheme Fund (ACGSF) was established by Decree No. 20 of 1977 to guarantee agricultural credit facilities granted to farmers. The federal government and the Central Bank of Nigeria (CBN) both contribute to the Fund in the ratio of 60% and 40% respectively. The CBN however doubles as the Managing Agent of the Scheme and the Secretariat of the ACGSF.
Earlier in his goodwill message, the Branch Controller Central Bank of Nigeria. ABUJA Branch, Ogbu Onyeka Michael, pointed out that it is evident that the successes achieved under the ACGSF has led to significant improvement in Deposit Money Banks’ (DMB) lending to the agricultural sector and has led to remarkable growth in agri-business value chain in Nigeria.
According to him, the annual Best Farmer Award, therefore, provides an opportunity to recognize the tremendous strides made by participating farmers under the ACGSF, add visibility to the program among prospective participants and ultimately signal the CBN’s resolve at ensuring the achievement of food self-sufficiency in Nigeria.
“The negative impact that COVID-19 pandemic and recently, the Russian-Ukraine war has rendered on global supply chain, it has further underscored the importance the CBN places on Agriculture and other real sector interventions aimed at insulating the economy from such external shocks.”